In recent years, the tax technology domain has gained more and more relevance.

This development is not entirely unexpected, as national and international organizations are demanding more transparency from multinational enterprises and are requiring those multinationals to contribute a fair share of the monetary resources of the jurisdictions in which they operate. This increasing scrutiny of the tax position of globally and regionally operating multinationals is paired with increasing innovations in the tax authority auditing capabilities. As a result, multinationals and tax advisors are starting to scale up their tax technology capabilities to address the new and increasing legal requirements.

The common denominator in the legal developments is the utilization of technology, either by tax authorities or MNEs.

In 2013, The Organization for Economic Co-operation and Development (“OECD”) started working on their Base Erosion Profit Shifting (“BEPS”) Action Plan. Detailed in fifteen “Actions”, the aim of this project is to mitigate the tax code loopholes and country-to-country inconsistencies, so that corporations cannot shift profits from a country with a high corporate tax rate to countries with a lower tax rate.

We are noticing a clear trend of increasing demands for transparency and adherence to the fair share principle.

In line with the OECD initiatives, the EU Council adopted Directive 2011/16 in relation to cross-border tax arrangements, which is commonly known as DAC6. In a nutshell, the Directive dictates that tax support with the implementation of advice given to MNEs, meeting certain predefined hallmarks, should be disclosed within 30 days of the fact.

In this trend report, you will learn about five trends observed in the tax domain. All of the selected trends are inherently connected to tax technology, either enforced by the authorities or as a response to the requirements imposed by those authorities. You will be informed about the trends, the legal background, and the relevant technologies.

Download our the Tax Technology Trend Report via the button below.

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