HMRC has published a research report, Exploring large business tax strategy behaviour (www.bit.ly/1CUFGqo), which considers what leads large businesses to alter their tax strategies and what factors are most influential in prompting the change.
HMRC has published a research report, Exploring large business tax strategy behaviour (www.bit.ly/1CUFGqo), which considers what leads large businesses to alter their tax strategies and what factors are most influential in prompting the change. The report observes ‘a recent change in the climate and reduced appetite for tax schemes, driven by public, press and government scrutiny’, and says ‘tax had become increasingly important for senior management, and was a greater focus for the board and shareholders.’
According to the report, businesses consider tax in two different ways. ‘If viewed as a cost or risk, they were likely to focus on compliance whilst attempting to minimise their tax liability. If viewed as a key part of their identity and reputation, it was factored into corporate responsibility and long term sustainable growth’.
The culture of a business was thought to be a key influence on tax strategy. ‘Culture was set primarily by the priorities of the board and the CEO, though was also influenced by owners or shareholders, personal views of decision makers, and the nature of the business itself.’
The board and senior decision makers were viewed as ‘the ultimate influence’ on setting strategy and determining risk appetite for the business. ‘Certain businesses felt that this had shifted decision-making power away from heads of tax, as the board relied less on them for strategic advice. On the other hand, heads of tax in some lower risk businesses had been given greater advisory responsibility.’
HMRC has published a research report, Exploring large business tax strategy behaviour (www.bit.ly/1CUFGqo), which considers what leads large businesses to alter their tax strategies and what factors are most influential in prompting the change.
HMRC has published a research report, Exploring large business tax strategy behaviour (www.bit.ly/1CUFGqo), which considers what leads large businesses to alter their tax strategies and what factors are most influential in prompting the change. The report observes ‘a recent change in the climate and reduced appetite for tax schemes, driven by public, press and government scrutiny’, and says ‘tax had become increasingly important for senior management, and was a greater focus for the board and shareholders.’
According to the report, businesses consider tax in two different ways. ‘If viewed as a cost or risk, they were likely to focus on compliance whilst attempting to minimise their tax liability. If viewed as a key part of their identity and reputation, it was factored into corporate responsibility and long term sustainable growth’.
The culture of a business was thought to be a key influence on tax strategy. ‘Culture was set primarily by the priorities of the board and the CEO, though was also influenced by owners or shareholders, personal views of decision makers, and the nature of the business itself.’
The board and senior decision makers were viewed as ‘the ultimate influence’ on setting strategy and determining risk appetite for the business. ‘Certain businesses felt that this had shifted decision-making power away from heads of tax, as the board relied less on them for strategic advice. On the other hand, heads of tax in some lower risk businesses had been given greater advisory responsibility.’
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