All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Hold on to your hats…

The new year has started with a question. While this question can be phrased in a number of ways, the common denominator is the topic: US tax reform.

Over the past weeks, in-house tax professionals have been telling me that this is set to change the tax structures of almost all multinationals, no matter what sector they're in.

For years, tax strategies have been geared around dealing with the US's outlying headline rate and system, but they will now need to be overhauled to suit the new reality – a reality which most of us are still working to understand.

But it's not only companies that have jumped into action; the 'race to the bottom' on corporate tax rates narrative will get plenty of airtime this year, with French President Emmanuel Macron mentioning it in his Davos speech, and across the Pacific from the US we've already seen China introduce retroactive incentives to keep companies on-side. But which of the world's superpowers has the more attractive tax system now? We explore this on page 18.

Beyond tax reform, companies also have to contend with the ever-growing appetite among politicians, the public and the media for greater transparency. We caught up with firebrand tax campaigner and politician Margaret Hodge, for an exclusive interview on page 25.

And while companies gear up, on the one hand, for the first release of country-by-country reports, and rapidly approaching implementation dates across a range of BEPS action points, on the other they must be looking into the future and preparing for the opportunities and difficulties that technology in taxation is already starting to bring (see page 28 on the complex world of taxation and robots).

There is also the taxation of the digital economy to take stock of. Italy has agreed plans for a unilateral measure targeting transactions – but is this really the right approach if, as BEPS Action 1 taught us, the digital economy is the economy?

Any one of these issues would, 10 years ago, have been enough to justify some complaints about a busy year ahead. With such a glut of risks and rewards, 2018 is set to be the busiest year so far. What an exciting time to become editor!

From myself and everyone at International Tax Review, the very best of luck for the year ahead. We'll be doing our best to guide you through it online, in print and at our events.

Joe Stanley-Smith

Editor, International Tax Review

More from across our site

The state secretary told the French press that the country continues to oppose pillar two’s global minimum tax rate following an Ecofin meeting last week.
This week the Biden administration has run into opposition over a proposal for a federal gas tax holiday, while the European Parliament has approved a plan for an EU carbon border mechanism.
Businesses need to improve on data management to ensure tax departments become much more integrated, according to Microsoft’s chief digital officer at a KPMG event.
Businesses must ensure any alternative benchmark rate is included in their TP studies and approved by tax authorities, as Libor for the US ends in exactly a year.
Tax directors warn that a lack of adequate planning for VAT rule changes could leave businesses exposed to regulatory errors and costly fines.
Tax professionals have urged suppliers of goods from Great Britain to Northern Ireland to pause any plans to restructure their supply chains following the NI Protocol Bill.
Tax leaders say communication with peers is important for risk management, especially on how to approach regional authorities.
Advances in compliance tools in international markets and the digitalisation of global tax administrations are increasing in-house demand for technologists.
The US fast-food company has agreed to pay €1.25 billion to settle the French investigation into its transfer pricing arrangements over allegations of tax evasion.
HM Revenue and Customs said the UK pillar two legislation will be delayed until at least December 2023, while ITR reported on a secret Netflix settlement and an IMF study on VAT cuts.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree