by Graham Robinson, Partner, and Edel Gunning, Manager, PwC’s Finance and Treasury Tax team
The tax landscape for business is changing, and the pace of that change is faster now than at any time in the last 20 years. The changes being discussed are wide-ranging and will have a major impact on the way multinational organisations carry out their business activities. The treasury function is not immune. This article highlights the types of change that treasurers can expect to see, and what they might mean for the treasurer’s activity.
There are various environmental factors driving changes. Firstly, developments in business practices and increased globalisation in recent years have not been matched by corresponding updates to global tax policies. Governments have recognised that major changes are required to ensure that global tax policies reflect new business models.
Secondly, the economic crisis of 2008, and resulting budget deficits in a number of territories, have led to increased focus on the ability of tax authorities to raise money.