International tax environment surrounding our clients is impacted by substantial changes.
As the Japanese market decelerates, more companies started to realign its’ direction and take their business into international markets. Pursuant to this realignment, the tax position of these companies become complex at an international level.
Previously, multinational corporations need only ensure that they are complying with the relevant tax rules in local jurisdictions. Today, various development in international fiscal law reasoning and application, notably the OECD’s Base Erosion and Profit Shifting (BEPS) Project and other proposals introduce public reporting requirements that leads the way towards greater corporate tax transparency and greater responsibility for the multinational corporations to report to their stakeholders. Further, the recent Panama Papers leak is likely to have many multinational corporations being questions by the stakeholder with regard to their respective tax exposures.
There is no written rules and it is up to each corporation to decide whether to assess the risks within their operations and provide adequate explanations to respective stakeholders. However, based on the recent evolvement of international rules and regulations, the sophisticated stakeholders may not be satisfied and convinced with the traditional “we are not breaking any law” approach -- this traditional attitude will definitely affect the operations of those multinational corporations.
Based on the above, the multinational corporations may wish to assess their respective exposures and strengthen their “Tax Governance Structure”, even more so under the current trend. This means to build a system to discover and prevent a tax risk at an early stage and act quickly to resolve it.
Under these circumstances, there is no doubt that it has become more difficult for our clients to handle international tax issues without specialized expertise.
At PwC Tax Japan, we have…
- many specialized partners and staffs with know-how and experience on international tax issues.
- the PwC Japan network which gives our clients an “one-stop service” to our advisory, legal and assurance experts.
- the PwC global network that allows us to obtain information and expertise regarding the latest tax news around the world on a speedy basis.
As the market is undergo various changes, PwC Tax Japan is the firm that can provide services from “preventive tax medication” to “advanced front line tax therapy” using our global reach and vision.
As a leading firm in the tax industry we continue to pursue the No. 1 Client Friendly Tax Advisor.
We continue to strive to provide world class professional services while enhancing client value in the Japanese economy.
Thank you for your continued support.
CEO, PwC Tax Japan
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