05 Aug 2015
Daniel Marion
Partner | CPA, CA | Tax

Three quarters of business leaders would pay more taxes in exchange for greater clarity from authorities on what is acceptable for tax planning, according to the Grant Thornton International Business Report (IBR), a global survey of 2,580 businesses in 35 economies. And while few expect a global agreement any time soon, the majority would like to see their governments take unilateral action to help achieve this aim.

The ball is very firmly in the tax authorities’ court
Francesca Lagerberg, global leader for tax services at Grant Thornton said: “The levels of taxation paid by businesses has become a very public and emotive issue. But setting emotion to one side, businesses have a responsibility to their investors and shareholders to keep costs down – within the existing regulatory parameters.”

Nevertheless, the IBR demonstrates that 73% of Canadian respondents, like their counterparts in the rest of the world (74%), share the same need for clarity from the tax authorities, even if it means less opportunity to reduce their cross-border tax burden. In response to the same question asked the previous year, only 46% of Canadian respondents were favourable towards such measures. Results reveal that changes are expected in the complex area of cross-border tax transactions.

BEPS_2015

Unilateral vs multilateral
Business leaders doubt that a global agreement will be enacted to provide clearer tax rules for all. Just 23% of the survey respondents thought that the OECD’s plans for global tax improvement under the Base Erosion and Profit Shifting project (BEPS) would likely be implemented. In Canada, this proportion shrinks to 16%. It should be noted that the OECD will publish its definitive recommendations on the BEPS project by late 2015.

However, they are far more supportive of implementing unilateral, individual country actions in lieu of a global agreement: 71% said they would support their own government taking unilateral action to combat the loss of tax revenue in their jurisdiction. Support for local action is strongest in India (95%), the US (82%) and the UK (79%). In Canada, 71% of respondents are in favour of such actions.

“The IBR clearly shows that businesses remain skeptical about the adoption of the OECD recommendations under the BEPS. As the OECD does not have force of law, each member country will need to adopt the recommendations within its own legislative framework, a process that could be very long. This is why the majority of respondents support unilateral action by tax authorities as it will protect the tax base”, said Daniel Marion, Transfer Pricing and International Tax Partner at Raymond Chabot Grant Thornton.

Francesca Lagerberg continued: “[…] the work being undertaken by the OECD on tax planning should go some way to allaying business concerns by moving this debate away from talk to action. The OECD is set to finalise its recommendations this year. International tax standards clearly need to be stripped down and rebuilt for the world we live in today. The existing legislation is creaking at the seams in an increasingly interconnected, digital world in which the definition of a ‘border’ is looking archaic. The research is showing that businesses are asking for more help to enable them to navigate the new challenges of a digital economy.”

For an interview with Daniel Marion, Transfer Pricing and International Tax Partner, please contact Sarah Ouannou (see below).

Notes to editors
The Grant Thornton International Business Report (IBR) provides insight into the views and expectations of more than 10,000 businesses per year across 35 economies. This unique survey draws upon 22 years of trend data for most European participants and 11 years for many non-European economies. More information: www.grantthornton.global

Data collection
Questionnaires are translated into local languages with each participating country having the option to ask a small number of country specific questions in addition to the core questionnaire. Fieldwork is undertaken on a quarterly basis, primarily by telephone. IBR is a survey of both listed and privately held businesses. The data for this release are drawn from interviews with 2,580 chief executive officers, managing directors, chairmen or other senior executives from all industry sectors conducted in May 2015.

About Grant Thornton
Grant Thornton is one of the world’s leading organizations of independent assurance, tax and advisory firms. These firms help dynamic organizations unlock their potential for growth by providing meaningful, forward-looking advice. Proactive teams, led by approachable partners in these firms, use insights, experience and instinct to understand complex issues for privately owned, publicly listed and public sector clients and help them find solutions. More than 35,000 Grant Thornton people, across over 100 countries, are focused on making a difference with clients, colleagues and the communities in which they live and work.

About Raymond Chabot Grant Thornton
Founded in 1948, Raymond Chabot Grant Thornton (rcgt.com) has become a Canadian leader in the fields of assurance, tax, consulting services, and business recovery & reorganization. Its strength is based on a team of over 2,500 professionals, including some 230 partners. Together, Raymond Chabot Grant Thornton and Grant Thornton LLP, another Canadian member firm of Grant Thornton International Ltd, help dynamic Canadian organizations unlock their potential for growth with over 4,300 professionals and some 140 offices across Canada. Grant Thornton International Ltd provides clients with the expertise of member and correspondent firms in more than 130 countries, with over 40,000 professionals.

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Information:
Sarah Ouannou
Coordinator – Public Relations
Raymond Chabot Grant Thornton
Tel.: 514-686-2417
[email protected]

Information on the research presented:
Dominic King
Global research manager
Grant Thornton International Ltd
Tel.: +44 (0)207 391 9537
[email protected]

05 Aug 2015  |  Written by :

Mr. Marion is a partner at Raymond Chabot Grant Thornton. He is your expert in taxation for the...

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31 Jul 2015
Daniel Marion
Partner | CPA, CA | Tax

Raymond Chabot Grant Thornton is pleased to be associated again this year with the 2015 Lolë White Tour as a collaborator. It encourages its personnel and all Quebecers who wish to take part in a unique activity to register for the Montréal event, which will bring together thousands of people, dressed in white, for an activity dedicated to peace.

In the past, this widely known tour has made stops in Whistler, Toronto, New York, Barcelona, Los Angeles and Paris, among others. The Montréal activity will be held on August 8, from 8 a.m. to 1 p.m., on Jacques-Cartier Quay, in the Old Port of Montréal.

Yoga teachers Dawn Mauricio and Faith Hunter will facilitate this extraordinary event. Known for their professionalism, energy and motivation, they will efficiently and enthusiastically coach all of the participants in their exercises.

About LOLË
Lolë’s mission is to encourage, motivate and bring together people to promote individual and collective well-being. This philosophy led to the creation of the Lolë White Tour, a peaceful all-in-white but colourful event!

Share a unique experience with thousands of other yogis all dressed in white as a symbol of peace. This is also a special opportunity to connect with your mind, body and soul to feel the power of this major gathering!

05 Aug 2015  |  Written by :

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29 Jul 2015
Daniel Marion
Partner | CPA, CA | Tax

Jean-Daniel-Brisson, Lead Senior Director at Raymond Chabot Grant Thornton, recently contributed to an article on the role of the Board of Directors in strategic planning. The article was published in the electronic newsletter BI Boardroom Insider. This American publication offers monthly advice on corporate governance.

“Boards are increasingly involved in drafting strategic plans”, explains Jean-Daniel Brisson, who is delighted that they no longer limit themselves to an approver role. The expert makes several recommendations, including increasing the time devoted to drafting and follow-up of the strategic plan. “We draft a strategic plan and we discuss it once a year… but what is happening on a quarterly basis?” he asks.

To find the other tips offered by Jean-Daniel Brisson, see the article on The Board and Strategic Planning in the July 2015 edition of the electronic newsletter BI Boardroom Insider (p. 2-3).

 

05 Aug 2015  |  Written by :

Mr. Marion is a partner at Raymond Chabot Grant Thornton. He is your expert in taxation for the...

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23 Jul 2015
Daniel Marion
Partner | CPA, CA | Tax

Lynda Coache

Lynda Coache, Assurance Partner at Raymond Chabot Grant Thornton, was chosen to represent the strong women of the Saint-Cyprien de Napierville community for La petite séduction. This show featured businesswoman and famous “dragon”, Danièle Henkel.

A native of Saint-Cyprien de Napierville, Lynda Coache shared her passion for this town and its region, where she practices her profession and manages two Raymond Chabot Grant Thornton offices (Saint-Jean sur Richelieu, Napierville). She also looked back on her personal and professional path, which has several points in common with that of Ms. Henkel.

To learn more, watch episode 12 (28 min 7 s) season 10 of La petite séduction.

05 Aug 2015  |  Written by :

Mr. Marion is a partner at Raymond Chabot Grant Thornton. He is your expert in taxation for the...

See the profile