Tax Risk Management and Board Responsibility - International Tax ...
Tax Risk Management and Board Responsibility - International Tax ...
Tax Risk Management and Board Responsibility - International Tax ...
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VI. Future developments<br />
Stakeholders do not always have the same interests when it comes to taxes. Companies<br />
will need to balance the dem<strong>and</strong>s of reducing tax to become more competitive <strong>and</strong> at the<br />
same time being good citizens <strong>and</strong> thus paying taxes. <strong>Tax</strong> may be expected to pose an<br />
increasing reputational issue because of growing awareness of its ethical dimensions. The<br />
expectation on companies to apply the concept of corporate social responsibility is gaining<br />
more <strong>and</strong> more importance.<br />
The OECD has announced that the Corporate Governance Guidelines will be exp<strong>and</strong>ed.<br />
There will be a greater attention to the linkage between tax <strong>and</strong> good governance.<br />
Furthermore the OECD produces statistics of international comparisons, engages in<br />
monitoring <strong>and</strong> encourages the exchange of information between national tax authorities 43 .<br />
Legislators are beginning to work globally on solutions for tax problems. The OECD has<br />
established the “Forum on <strong>Tax</strong> Administration”, as a panel of national tax administrators.<br />
Regulators such as stock exchange supervisors will extend the focus on internal control<br />
systems 44 . In the US the Public Company Accounting Oversight <strong>Board</strong> (PCAOB) was<br />
created by the SOX <strong>and</strong> is already focusing on audit of internal control systems to protect<br />
the interests of investors <strong>and</strong> the public 45 .<br />
<strong>International</strong> co-operation <strong>and</strong> information sharing between tax authorities will increase<br />
significantly over the coming years. A joint international tax shelter information centre<br />
taskforce was set in place by Australia, Canada, the UK <strong>and</strong> the US in 2004 46 . The<br />
Committee on Fiscal Affairs of the OECD is working to improve exchange of information<br />
both from a legal <strong>and</strong> a practical perspective. 47 The establishment of the “Leeds Castle<br />
Group” which will be an extension of the IRS was agreed in 2006 <strong>and</strong> nine countries have<br />
43 OECD, 2007, http://www.oecd.org/topic<br />
44 Internal Revenue Services, Department of the Treasury , USA<br />
http://www.irs.gov/newsroom/article<br />
45 PCAOB, 2003-2006, http://www.pcaobus.org/<br />
46 Internal Revenue Services, Department of the Treasury , USA, May 3, 2004<br />
http://www.irs.gov/newsroom/article<br />
47 OECD, 2007, http://www.oecd.org/topic<br />
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