Tax policy & administration

Our role in tax policy involves working with a wide range of stakeholders. Our global Tax network helps individuals and organisations with the tax side of their businesses and investments, such as tax compliance and tax planning. Some of our professionals are more focused on tax policy more directly - for example:

  • working with governments on their tax efficiency and capacity to establish effective tax regimes and administrative systems
  • undertaking benchmarking exercises, working in collaboration with outside organisations such as our Paying Taxes project with the World Bank Group
  • helping to bridge the relationship gap between tax administrations and businesses that want to adopt a more cooperative compliance regime
  • advising on the feasibility and efficiency of greater tax transparency that benefits businesses and policy-makers
  • exploring the impact of tax rule changes both domestically and internationally, as with the OECD’s Base Erosion and Profit Shifting (BEPS) action plan
PwC_Geom_Illus_RGB_51.png

OECD announcement - October 2020

The OECD released 'Blueprints' on the tax digitalisation/globalisation project on Monday 12 October. These two Blueprints cover Pillar 1 and Pillar 2 in the project framework previously announced. Our Global Tax Policy team and subject specialists discuss the progress that has been made, the difficulties being encountered and what the Blueprints mean for multinational enterprises, tax authorities and other stakeholders.

Learn more

Explore our services

Taxation of the globalisation and digitalisation of the economy

Policymakers globally are seeking changes to the international tax framework to reflect the impact that globalisation and digitalisation have had on their tax bases. These changes will apply to all large international businesses, not just highly digitalised businesses.

The G20/OECD Inclusive Framework which is moving toward 150 countries has been reviewing the rules of the international corporate income tax system. The project is expected to come to fruition during 2020 with some political announcements at the start of the year on progress.

However, a number of countries are moving unilaterally, either for the short term or longer to the extent that a global consensus is not reached. Distortions, uncertainty, and complexity could be created.

The resulting changes could have an impact on businesses’ effective tax rates,  supply chains and business structures, compliance burdens, deal capacity, communications and reputation, and understanding the impact will be a priority for all forward looking businesses.

Learn more

View more

Base Erosion and Profit Shifting (BEPS) Action Plan

  • The recommendations of the BEPS Project led by the Organisation for Economic Cooperation and Development (OECD) and published in October 2015 are at the root of much of the coordinated activity on perceived international tax avoidance techniques, although we’ll help you understand and input to how these are being nuanced with additional work.
  • The timing, methods and extent of implementation vary between jurisdictions and our extensive network will help all stakeholders plan how best they can react to proposals and recommendations.
  • We can help businesses identify significant risk areas and begin remediation as required, based on current actions of tax authorities and the future impact of OECD work.
  • Our people, information services and insights will monitor for you the domestic impact of BEPS work – especially on behavioural changes.

Learn more

View more

DAC6: The new EU directive on cross border tax arrangements

What is DAC6?

  • DAC6, the new EU directive in relation to cross-border tax arrangements, has been in force since 25 June 2018 and is currently being transposed into national laws by the EU member states. (Click here for further information on the timeframes)
  • DAC6 applies to cross-border tax arrangements which meet one or more specified characteristics (hallmarks), and which concern either more than one EU country or an EU country and a non-EU country. 
  • DAC6 introduces a reporting obligation for intermediaries and taxpayers, depending on the set up of the arrangement and local law.

We can help businesses understand the relevance and importance of DAC6, and the need to act now.

Learn more

View more

EU Direct Tax Group

  • Our pan-European network of EU law experts combine their skills to advise in all areas of EU direct tax law, including the fundamental freedoms, EU directives and State aid rules..
  • We have set up client-facing expert working groups to address specific hot topics such as State aid, BEPS, Code of Conduct and CCCTB.
  • Through our EUDTG Technical Committee, we continuously develop new and innovative EU law positions and solutions for practical application by clients.
  • We input to the EU and international tax debate and maintain regular contact with key EU and OECD policy-makers through our EU Public Affairs capability in Brussels.
  • We facilitate the "EBIT" business initiative.
  • Our secretariat in the Netherlands operates an EU tax news service, keeping clients up to date with developments as soon as they happen.

Learn more

View more

Fiscal Policy

We are a UK-based team specialising in supporting governments and international development agencies in analysing, building and implementing the private sector and development organisations across the world in all areas of fiscal and economic policy.

Many of the team have previously worked directly for finance ministries, tax authorities, policymakers and international financial institutions, therefore offering a deep understanding of the concerns and preoccupations of key governmental stakeholders.

Some of our recent projects have involved:

  • Improving the efficiency of public services by introducing new budget oversight and performance management procedures,
  • Reforming public financial management processes, enabling governments to align public spending with its longer-term strategic plan,
  • Introducing new tax, policy and governance initiatives in order to increase the transparency of public finances, oversight and encourage citizen engagement,
  • Supporting the finance ministry of a resource-rich country as it adjusts to lower commodity prices and forecasting the impact, and
  • Helping a revenue authority in a key emerging market to model its informal economy

Learn more

 

View more

Tax & transparency

Tax and its impact on corporate reputation is a key issue for business while tax transparency, reporting and the tax gap are vital to other stakeholders like governments, supranationals and NGOs. Areas where we work with to help improve transparency around tax in a national context, and globally are:

  • Tax transparency: country-by-country reporting
  • Building trust, enhancing reputation
  • Total Tax Contribution
  • The annual Paying Taxes study
  • Effective tax rate benchmarking

Learn more

View more

The future of tax

  • When we look to the long term future, many of the challenges and opportunities that we see ahead, both for tax and more generally, can probably be grouped into categories which deal with shifts in economic power, demographic shifts, technological change, greater urbanisation and climate change/ resource scarcity.
  • There are trends that we see ranging from the current to the more medium term. We’ve now started to raise some of these trends through our regular Tax Policy Bulletins and alerts from specific networks, including for example those stemming from the Base Erosion and Profit Shifting (BEPS) Action Plan, EU fiscal State aid and those around the likely growth of cooperative compliance in many territories. Our annual Paying Taxes report also provides trends in key elements of tax compliance around the world.
  • Technological advances are driving huge interest in how different the tax function of the future will look and operate, along with the impact on systems of step change developments like blockchain, robotics and artificial intelligence.
  • PwC is also interested in understanding and promoting debate on what people really want from their tax regime.

View more

Tax Policy Bulletins

  • Keeping up with the increasing pace of change surrounding tax policy and administrative developments worldwide can be a real challenge.
  • Drawing on our experience of tax policy issues and insight from relationships with organisations such as the OECD, we have put together a series of Tax Policy Bulletins. These are more than just insights or thought leadership, but are a fundamental part of our tax policy services.
  • With analysis and insight on policy changes around the world, these bulletins are designed to help you stay up-to-date with the latest developments and explain what these changes mean for you.

Learn more

View more

Supranational organisations and other stakeholders

  • Our Tax Policy Network regularly liaises with the Organisation for Economic Cooperation and Development (OECD), centrally, regionally and in relation to specific jurisdictions (including through Business at OECD, formerly BIAC). This also covers the various committees that have evolved from OECD work, like the Forum on Tax Administration (FTA), the Global Forum on Tax Transparency and Exchange of Information; and the Forum on Harmful Tax Practices (FHTP).

  • We review and respond to papers from the Platform for Collaboration on Tax and/or its other members: the United Nations (UN), International Monetary Fund (IMF) and World Bank Group (WBG).

  • Outputs from the Group of 20 (G20) are framed by the then Presidency country for each 6-monthly term, reflecting members agreement on views including those on tax from its subsidiary groups like the T20 (technical focus) and B20 (business focus), to which we input, as well as the OECD. The G7/G8 major countries and G24  Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development similarly form views on some tax issues.

  • Regional country alliances often cover political and economic cooperation, including some tax matters. The European Union (EU) is one example, but others are the Gulf Cooperation Council (GCC) and the Association of Southeast Asian Nations (ASEAT). We interact on tax with the various institutions that form these organisations as well as tendering for research largely through out Fiscal Policy team.

  • Tax administrations come together in regional groups for which PwC Firms from the area join with other PwC tax policy specialists. This extends this type of collaboration beyond the 50 or so members of the FTA above. These include ,for example, the African Tax Administration Forum (ATAF), Inter-American Center of Tax Administrations (CIAT), Intra-European Organisation of Tax Administrations (IOTA) and Study Group on Asian Tax Administration and Research (SGATAR).

  • Other tax policy stakeholders that we seek to engage with include bodies of professional tax practitioners (and tax committees of wider trade bodies), non-governmental organisations (NGOs) and the public, speaking through various organs including the media.

Learn more

View more

Impact of COVID-19 on tax policy

­COVID-19 presents significant challenges to people and organisations around the globe and the disruption continues to evolve. After the initial response measures, COVID-19 will have medium and longer term implications for the way that governments, tax administrations and businesses move from crisis response into the recovery phase and resilience/structural considerations..

 

  • Navigate Tax, Legal and Economic Measures in response to COVID-19. To help you cut through the complexity, PwC's team of specialists collaborated to create a resource for you to stay abreast of the changes that impact your business. Explore the latest response by territory.
  • Tax functions have had to quickly adapt to maintain their normal responsibilities with tax personnel working remotely and consider the tax implications of current or potential changes in business models, supply chains and workforce mobility. Consider the Tax Function's role [updated from preview link]
  • The large increases in borrowing to fund the crisis measures will have an effect on inflation rates and taxes but it is too early to say what these will be. We do know, however, that big businesses will be impacted and their tax contributions may be closely scrutinised. [add link to blog]
  • The COVID-19 crisis has led to a general reassessment of the European Commission's program, but the Commission is not expected to delay its most important tax-related projects. Initiatives on ‘Fighting tax evasion’ and ‘Business taxation for the 21st century’ are strategic priorities. Explore our latestet Tax Policy Bulletin­
  • It is important to begin considering how tax policy will be affected by the impacts the virus has on elements of domestic and global tax systems. These might include territories’ tax revenues, restructuring of business and countries value chains, and future ability to pay. A reassessment may be needed of what is taxable and where given the sustainability of different taxes as well as the choice between consolidating existing regimes, fulfilling projects based on the old norms, and advancing initiatives that might otherwise have remained in the conceptual stage for the near future. Explore our latestet Tax Policy Bulletin­

View more

Contact us

Stef van Weeghel

Stef van Weeghel

Leader, Global Tax Policy & Administration Network, PwC Netherlands

Tel: +31 (0) 88 792 6763

William Morris

William Morris

Deputy Leader, Global Tax Policy & Administration Network, PwC United States

Tel: +1 (202) 312 7662

Edwin Visser

Edwin Visser

EMEA Tax Policy Leader, PwC Netherlands

Tel: +31 88 792 3611

Follow us