Indirect tax is a focus of attention for tax authorities and so for taxpayers. Financial markets turmoil means that direct taxes may have to go up in some jurisdictions to pay for bail-outs. However, generally, the political will to raise direct taxes is fading, so governments are looking to consumption-based charges as a way of raising revenue. In other ways, indirect taxes are becoming critical to taxpayers' planning. Transfer pricing and customs rules are aligning more and more, for example.
September 30 2008