There has been a noticeable increase in collaboration among revenue authorities around the globe. We’re used to countries engaging in traditional information exchange under recent and long-standing tax treaties, as well as multilateral tax information exchange programs. Now this collaboration is evolving into more sophisticated methods and strategies.
One of the fastest emerging trends is the pursuit of “joint audits” where a taxpayer is subject to a coordinated audit using a single audit team of representatives from multiple jurisdictions. Joint audits are the next step to even greater cooperation between taxing authorities – a new era of coordinated action.
We think industrial companies with multinational operations need to consider the pros and cons of engaging in a joint audit, taking into account the potential risks and cost-saving rewards with respect to all taxing jurisdictions involved. In this short paper, we help you consider the key points in deciding whether to pursue a joint audit.