What the BEPS? Brexit!By Robert Robillard - 24 June 2016
This blogpost originally appeared on rbrt.ca.
Obviously Brexit is rattling the EU today (and the world).
Financial markets are (likely temporarily) in a free fall. This shall pass…
The British pound is getting hammered. This too shall pass…
On the tax front, Common Consolidated Corporate Tax Base (CCCTB) just got slapped across the face. Fairly hard at that.
The Anti Tax Avoidance Package also got some bruises this morning.
Both recently relaunched/ratified, they have just lost a significant player.
If other countries were to follow in the UK’s footsteps, this may get nasty. We shall see…
Coming back to the UK, will Brexit be followed by a “leave” movement by companies? We do not expect that.
UK’s corporate tax regime remains one of the most enticing in the BEPS era across Europe in spite of the newly born diverted profits tax.
However, as the “leave” process starts taking shape in the UK, new issues may arise.
Companies may have to revisit their corporate tax strategy and value chain management in Europe. Sales tax matters may also have to be revisited.
The next 6 to 12 months should provide a good indication of how Brexit will ultimately unfold.
But there is indeed nothing wrong with talking about and, in some case, revisiting tax planning at this time.
The convergence of RBRT’s tax, accounting and economics expertise makes a difference. The information in this blog post is general information only. Data and information come from sources believed to be reliable but complete accuracy cannot be guaranteed. RBRT Inc. or the author are not responsible or liable for any error, omission or inaccuracy in such information. The opinions expressed in this blogpost are those of the author. Readers should seek advice and counsel from RBRT Inc. as required.