Strategizing International Tax Best Practices – by Keith Brockman

Posts tagged ‘audit disputes’

Global tax disputes survey

KPMG has issued a 2019 survey benchmarking tax disputes, linked for reference.

The report is divided into four sections:

  1. Tax audits and disputes-the changing environment
  2. Tax dispute management today
  3. Leveraging technology
  4. Tax dispute management of the future

Some observations in the report:

  • Tax authorities are becoming more aggressive, with less appetite to settle
  • Increased penalties
  • Cooperative compliance is still the highest rated tool to resolve disputes
  • More focus on international transactions
  • More information sharing by tax administrations
  • Dedicated resources in multinationals for dispute resolution, including global head of controversy
  • Hiring talent with dispute management experience
  • Internal process for handling audit disputes
  • Dispute management budget > 10% of tax budget
  • Tax dispute technology, apart from Excel, is still in its infancy
  • New trends: Global head of controversy, dedicated budget/staff/technology, escalation/communication processes and a global tax audit software platform

As audits escalate, disputes will likewise increase.  Accordingly, this issue warrants additional attention especially with respect to processes and talent.

https://assets.kpmg/content/dam/kpmg/xx/pdf/2019/10/the-global-tax-disputes-environment.pdf

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