Strategizing Multinational Tax Risks

The Hungarian government has submitted draft proposals for the 2016 budget.

Two important provisions are provided for review and advance planning:

• Tax risk rating system of “risky” or “reliable” with corollary changes to tax authority deadlines and penalties.
• Changes to IFRS, from Hungarian GAAP, for 2016.

EY’s Global Tax Alert provides additional details of these proposals:

Click to access 2015G_CM5889_Hungary%20submits%20new%20proposal%20for%202016%20tax%20law%20changes%20and%20publishes%20IFRS%20transition%20timeline.pdf

The risk rating system is becoming more of a norm, versus an exception, in various jurisdictions.  Accordingly, MNE’s should review its tax risk policies/framework to ensure a favorable “reliable” rating is achieved.