Despite evidence that governments around the world are reducing tax costs and compliance, these efforts are not being felt by CEOs. Here we explore some of the reasons for the disparity.
PwC’s 18th Annual Global CEO Survey reveals that seven in 10 CEOs are still concerned about the increasing tax burden borne by their businesses – some 15 percentage points higher than the levels of anxiety seen in 2012.
These high levels of concern are despite the trends seen in the annual PwC / World Bank Group study, Paying Taxes: The Global Picture, which suggest a different story. The most recent study shows that not only has the global average Total Tax Rate for a typical medium sized company fallen by 1.3 percentage points, but so too has the compliance burden, measured by the average time it takes a case study company to comply with its tax responsibilities and the number of tax payments required to be made. Indeed, all three of these sub-indicators have shown a steady downwards progression over the past decade. So why is there such a mismatch?
Managing Director , Crescent Group
Group Chief Executive, Transnet SOC Ltd.
Sergio P. Ermotti
Group Chief Executive Officer, UBS
President & CEO, Nippon Telegraph and Telephone Corporation (NTT)
CEO, Fomento de Construcciones y Contratas (FCC)