Print Page   |   Report Abuse
News & Press: International News

Deloitte Chief Challenges Tax Authorities

18 June 2013   (0 Comments)
Posted by: Author: Robert Lee
Share |

Author: Robert Lee

"Businesses and tax authorities need to apply clear tax law so that companies know how much to pay and tax authorities how much to collect," Deloitte's Chief Executive has claimed.

Writing in The Times, David Sproul reflects on a number of tax issues currently receiving attention from both politicians and the media.

For instance, the G8 Summit will today discuss initiatives for cracking down on tax evasion and aggressive tax avoidance. However, Sproul warns that any attempt to make the global tax system more transparent must be accompanied by effective reforms.

Sproul's article argues that global tax authorities ought to consider adopting new methods of working if they hope to overcome what he calls "modern challenges." Mutual agreement procedures between different tax bodies would also help reduce the risks posed by double taxation.

Nonetheless, while Sproul believes that authorities should focus on improving the effectiveness of their work, they must also "tread carefully" when it comes to demands for financial transparency. Country-by-country public reporting could prove especially costly for businesses, and might "place some businesses at a competitive disadvantage and overburden with too much data and too little insight."

Sproul instead favors improved narrative reporting. This "could help companies to explain underlying tax drivers to a range of public stakeholders."

In the case of developing countries, Sproul's contention is that there should be greater support for governmental efforts to enhance tax systems and improve their responses to complicated cases. More emphasis needs to be placed on the provision of training and dissemination of knowledge in such areas, Sproul adds.


WHY REGISTER WITH SAIT?

Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

MINIMUM REQUIREMENTS TO REGISTER

The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

Membership Management Software Powered by YourMembership.com®  ::  Legal