Majority expects increase in tax assessments: Deloitte

Majority expects increase in tax assessments: Deloitte

Some 82 per cent of  the tax executives in India think that tax authorities will increase tax assessments as a result of the BEPS (Base Erosion and Profit Sharing) recommendations on intangibles, a survey titled ‘Anticipating BEPS: India impact’ said.

The survey was conducted by Deloitte with 80-100 respondents, who were tax executives from multinational companies. Out of the target companies, 41 per cent are headquartered in India.

 Also, more than 85 per cent tax executive, globally, think that the corporate tax and transfer pricing compliance burden will substantially increase as a result of additional reporting from the OECD BEPS recommendations. In India, 77 per cent executives think that they are anticipating significant legislative and treaty changes as a result of the BEPS recommendations on Permanent Establishments, the survey said.

The survey added that in India, 82 per cent executives think that there will be significant impact resulting from an uncoordinated approach adopted by countries relating to low value add services. “The Indian government is likely to bring in amendments in the proposed budget to give effect to some of the action points of the BEPS.

Action points

The industry and professionals, are keenly waiting for the implementation of some of the action points of BEPS viz. Country by Country Reporting, Marketing Intangible, Digital Economy etc., as this has significant impact on the business and tax administration. The challenge lies more in the implementation than legislation,” said KR Sekar, Partner, Deloitte Haskins & Sells

 “Further, the recently introduced draft Guiding Principles on Place of Effective Management (PoEM), needs more clarity as some of the issues are still open,”  he added.

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