Companies unprepared for global transformation of tax systems


Some 93% of corporate decision-makers are afraid that their company is not able to handle the sometimes conflicting views of national tax authorities, according to international research conducted by professional services firm EY among more than 1,700 company leaders.

The international tax system is about to undergo a transformation not seen for 100 years, according to the action plan of the Organisation for Economic Co-operation and Development (OECD), EYʼs research says. The OECD is aiming at countering the tendency at multinational companies to move their profits around to decrease their tax base.

Global tendencies point to a closer correlation between the tax administrations and systems of separate countries, with governments collecting and sharing more digital information with each other during tax controls than earlier. According to 89% of those surveyed, these conditions will need continuous adaptation in the future, with around 80% expecting tax risks to rise.

"Today, a locally taken financial or tax policy decision can result in an immediate international effect, which can influence the operation of companies," says Botond Rencz, EYʼs country manager for Hungary. "In order to spot and quickly react to the relevant changes in legislation, they need to have an appropriate advisory and technological background."

The vast majority of companies have taken steps to correct shortcomings in their operational model; however, 87% still believe there are not enough resources to follow the tax-related changes in rules, raising the companyʼs tax risks, and in turn the amount of tax that has to be paid, says the EY research.


Mapei Targets 6% Higher Revenue This Year Figures

Mapei Targets 6% Higher Revenue This Year

Parliament Negates Mandatory Membership in MOK Parliament

Parliament Negates Mandatory Membership in MOK

Construction Specialist Wait Times Have Fallen Construction

Construction Specialist Wait Times Have Fallen

Meet the Expat CEO of the Year Nominees Awards

Meet the Expat CEO of the Year Nominees


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.