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

Foreword: Reshaping the tax landscape to aid economic recovery

Sponsored by

eygreece.png
forward.jpg

The first edition of the EY Asia-Pacific guide comes timely as markets rebuild following a disruptive start to 2020. Asia-Pacific Tax Leader, Eng Ping Yeo, introduces the key themes that businesses must anticipate as the region looks forward to the post COVID-19 era.

Click here to read the entire 2020 EY-ITR Asia Pacific Guide

The tax function is gaining more recognition as an essential part of a high-performance organisation, and its role has gained increasing prominence as businesses navigate through the acute stress and disruptions arising from the COVID-19 pandemic.

Restrictions on the movement of goods and people have forced businesses to rethink market behaviour, supply chains, workforce agility, access to funds and capital, and tax is an important element of any course of action being considered. There are also tax-specific risks that need to be managed, for example the integrity of established tax structures and in-house tax policies on matters such as transfer pricing or the viability of tax incentives secured under different economic circumstances.

Amid the COVID-19 disruption, apart from delivering on business-as-usual tax needs, the tax function has also been called upon to identify and access government stimulus packages which encompass non-tax measures from around the world. On the contrary, governments may urgently start looking for avenues to fund stimulus packages, which in most cases are at unprecedented levels.

Despite the disruption, international tax debates around profit-shifting and taxation of digital businesses have not abated and the discussions have in fact intensified. More is expected from the tax function as it is required to stay abreast of these policy trends and provide a voice for organisations to influence policy outcomes while also providing a plan on the way forward.

While excellent tax accounting and computational skills remain key competencies required from a tax professional, there is no doubt that tax professionals of today perform a complex and multi-faceted role. They deliver the highest value-add when the tax function is embedded in the broader strategy of the organisation – one that is connected with the external environment and empowered to shape and drive the transformation of the tax function in line with the aspirations of the organisation.

We are seeing how this is enabled and accelerated by technology, allowing tax functions to do more with less, and to realise ambitions which seemed far-fetched otherwise. In a data-enabled organisation, the ability to process large volumes of data to uncover tax inefficiencies or missed opportunities, or to garner greater trust in the tax outcomes through increased data integrity, provides a real advantage. This is especially the case in risk-based tax audit environments, or more fundamentally, to keep the tax function fully compliant.

With more staff working remotely, organisations which have invested in technologies realise that they have gained an upper hand in this new virtual environment, while those who did not, find themselves struggling with compliance demands, let alone be able to respond proactively to new tax laws and policies.

Many tax functions are also reassessing the resilience of their current operating model, and at EY, the tax team is working closely with many organisations to reimagine their tax and finance functions for the future, where they are considering out-sourcing models and technology solutions. The EY People Advisory Services and Law teams are actively engaged in discussions about the transformation of the talent and law functions. These are emerging trends which started before COVID-19 and have been further accelerated in response to business needs for transformation.

EY is honoured to be working with ITR to present the first edition of the EY Asia-Pacific guide. Through these articles, compiled from our various specialty services leaders, we hope to bring you insights on the tax issues that matter to you.

more across site & bottom lb ros

More from across our site

The European Parliament raises concerns over unanimity in voting on pillar two, while protests break out over tax reform in Colombia.
Ramesh Khaitan speaks to reporter Siqalane Taho about tax morality, transfer pricing regulations, Indian tax developments, and the OECD’s two-pillar solution.
Join ITR and KPMG China at 10am BST on October 19 as they discuss the personal, employment, and corporate tax-related implications of employees working from overseas.
Tricentis and Boehringer Ingelheim, along with a European Commission TP specialist, criticised the complexity of pillar one rules and their scope at an ITR event.
Speakers at ITR’s Managing Tax Disputes Summit said taxpayers can still face lengthy TP audits, despite strong documentation preparation
Gig economy companies in New Zealand will need to fully account and become liable for the goods and services tax of underlying suppliers on their platforms, under new proposals.
Join ITR and Thomson Reuters at 2pm (UAE) / 11am (UK) on October 13 as they discuss how businesses can prepare for Tax Administration 3.0 and future-proof against changes such as e-invoicing and increasing digitisation.
ITR has partnered with global TP leaders from Deloitte to discuss transfer pricing controversy around the globe, and to share advice on how to navigate an increasingly uncertain and risky TP landscape.
Sources say they are not satisfied with pillar one protections in the marketing and distribution safe harbour, even though it was designed to give businesses greater tax certainty.
Political support for qualified majority voting is at a peak as unanimity rules continue to block the European Council from passing a directive on pillar two.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree