I’m always blessed with variety. Currently, two IP migrations, a cross-border joint venture for investment in renewable energy technologies, a BEPS-related restructuring and a multi-country pro-bono project for a high profile NGO.
Can the UK learn anything from the US regarding tax policy (or vice versa)?
Good work has been done by the UK which should put it in a strong position to be the prime beneficiary of BEPS as multinationals restructure to match their tax planning with their substance. If the UK can avoid further knee-jerk reactions to political pressures, it can become the destination of choice for international groups. Regrettably, the US Congress lacks the political will to do the same as companies continue to leave via inversions and other methods.
What’s the number one US tax issue facing multinationals operating there?
Uncertainty. The US tax environment will remain in flux until Congress is able to have an honest debate about the direction of US tax policy. Multinationals need to be prepared for ongoing uncertainty and tax departments should be educating management on the resources needed to operate in this uncertain environment.
If you could make one change to a tax law or practice (in any country), what would it be?
I would enable taxpayers from any country to be able to make tax deductible charitable contributions to any organisation anywhere in the world.
What is the highlight of your career to date?
I helped design and teach a new curriculum on international taxation for the law school at Addis Ababa University in Ethiopia.
What big development should we be looking out for in 2016?
BEPS will impact key decision making by every multinational. Groups have already started to restructure in response to BEPS. This will accelerate in 2016 as multinationals prepare for country-by-country reporting as well as attacks by tax authorities emboldened by the BEPS process. BEPS will impact M&A as buyers take BEPS (and state aid) issues into consideration during the diligence process and when negotiating and financing the deal.
Aside from your immediate colleagues, whom in tax do you most admire?
Jim Tobin at E&Y. He was an early mentor who taught me that even when you think you’ve anticipated all the issues, there is always another important question out there.
Will the BEPS process prove to be successful?
Even though only a limited number of the BEPS Action Plans have crystalized into definitive guidance, BEPS is already altering behaviour. Multinationals are restructuring so that profits follow substance. New tax structures are being implemented in a more sober environment. More tax will be collected by tax authorities around the world. Given its goal of eliminating double non-taxation, the OECD can consider that a success. Their mission now should be to help ensure the fair distribution of that tax and prevent countries from taxing the same income. The OECD needs to take the lead on bringing together the often competing views of the EU, UN, NGO’s and other stakeholders trying to influence global tax policy.
Tell us a secret.
I’ve walked extensively on the UK’s public footpath network. It’s great being able to explore the country on foot.
I’m always blessed with variety. Currently, two IP migrations, a cross-border joint venture for investment in renewable energy technologies, a BEPS-related restructuring and a multi-country pro-bono project for a high profile NGO.
Can the UK learn anything from the US regarding tax policy (or vice versa)?
Good work has been done by the UK which should put it in a strong position to be the prime beneficiary of BEPS as multinationals restructure to match their tax planning with their substance. If the UK can avoid further knee-jerk reactions to political pressures, it can become the destination of choice for international groups. Regrettably, the US Congress lacks the political will to do the same as companies continue to leave via inversions and other methods.
What’s the number one US tax issue facing multinationals operating there?
Uncertainty. The US tax environment will remain in flux until Congress is able to have an honest debate about the direction of US tax policy. Multinationals need to be prepared for ongoing uncertainty and tax departments should be educating management on the resources needed to operate in this uncertain environment.
If you could make one change to a tax law or practice (in any country), what would it be?
I would enable taxpayers from any country to be able to make tax deductible charitable contributions to any organisation anywhere in the world.
What is the highlight of your career to date?
I helped design and teach a new curriculum on international taxation for the law school at Addis Ababa University in Ethiopia.
What big development should we be looking out for in 2016?
BEPS will impact key decision making by every multinational. Groups have already started to restructure in response to BEPS. This will accelerate in 2016 as multinationals prepare for country-by-country reporting as well as attacks by tax authorities emboldened by the BEPS process. BEPS will impact M&A as buyers take BEPS (and state aid) issues into consideration during the diligence process and when negotiating and financing the deal.
Aside from your immediate colleagues, whom in tax do you most admire?
Jim Tobin at E&Y. He was an early mentor who taught me that even when you think you’ve anticipated all the issues, there is always another important question out there.
Will the BEPS process prove to be successful?
Even though only a limited number of the BEPS Action Plans have crystalized into definitive guidance, BEPS is already altering behaviour. Multinationals are restructuring so that profits follow substance. New tax structures are being implemented in a more sober environment. More tax will be collected by tax authorities around the world. Given its goal of eliminating double non-taxation, the OECD can consider that a success. Their mission now should be to help ensure the fair distribution of that tax and prevent countries from taxing the same income. The OECD needs to take the lead on bringing together the often competing views of the EU, UN, NGO’s and other stakeholders trying to influence global tax policy.
Tell us a secret.
I’ve walked extensively on the UK’s public footpath network. It’s great being able to explore the country on foot.
