Connect with us
MARE BALTICUM Gaming & TECH Summit 2024

Artificial Intelligence

COVID-19 and regulatory uncertainty spur greater tax risk for organizations in 2021 and beyond, EY survey finds

Published

3 years ago

on

 

More than half (53%) of responding business tax leaders expect greater tax enforcement in the next three years, particularly as governments look to remedy budget pressures and stimulate their economies during the COVID-19 pandemic, according to the 2021 EY Tax Risk and Controversy Survey. EY teams canvassed the views of 1,265 tax and finance leaders across 60 jurisdictions and 20 industry sectors during the fourth quarter of 2020, making it the largest sample in the survey’s history.

Business tax leader respondents highlighted issues around workers stranded overseas, treatment of financial losses linked to the pandemic, the claiming of tax refunds and even the receipt of stimulus measures as top pandemic-related tax risks. Respondents are also concerned about tax risk related to transfer pricing – skewed by the pandemic – and an acceleration in the digital transformation of tax authorities. Survey respondents say they anticipate a far more diverse tax risk environment spanning everything from scrutiny of routine business activity, to major, billion-dollar settlements in court.

As a result, managing tax risks and resulting disputes has rapidly risen in the corporate agenda. Two-thirds of respondents (66%) say it has already become more important to their tax department, while the same proportion (66%) confirm that C-suite executives are demonstrating more oversight and interest in tax issues.

Geographically, respondents view Europe as the region representing the highest tax risk to businesses in the coming three years with the Americas and Asia-Pacific close behind. Attitudes to tax enforcement vary by industry, with businesses in the Media and Entertainment (57%), Oil & Gas (59%), and Telecommunications and Life Sciences sectors (68%) all reporting results in excess of the 53% global average of businesses that expect tax enforcement to increase.

Transfer pricing leads global tax risks

Transfer pricing has once again been identified as the biggest source of tax risk, as per the last three biennial surveys. Respondents say they fear a broader spectrum of risks in this area in 2021 and beyond due to pandemic-related profit volatility and the challenges of creating transfer pricing benchmarks that tax authorities will find acceptable.

A further mix of tax challenges and disputes is also expected as a result of the pandemic, including financial losses, the claiming of tax refunds, and even the receipt of stimulus measures. Almost half of respondents (45%) highlight the risk of tax, permanent establishment, and immigration issues related to stranded business and expatriate workers as a result of travel bans and immigration changes. Almost a third (28%) see potential for new tax audits relating to support or stimulus as a result of the COVID-19 pandemic. Business tax leaders also expect to pay more tax in the coming three years: 51% globally expect higher direct taxes, while 44% foresee higher indirect taxes.

Unprecedented rates of global tax reform, tax authority digital transformation

Even before the pandemic, tax functions were experiencing an unprecedented rate of digital and legislative change, with three-quarters (75%) of respondents noting that local tax reforms implemented over the last three years had increased overall tax risk levels. Meanwhile, almost three-quarters (74%) say that tax authority digitalization has increased tax risk for their tax department, with advancements in data analytics, machine learning and artificial intelligence (AI), and cross-border information sharing all leading to increased scrutiny of companies. Respondents note that many tax authorities are so digitally advanced that they may know more about a company’s tax affairs than the taxpayer themselves.

Managing tax controversy and risk

To manage tax risk and controversy, half (50%) of survey respondents say they are already using a Tax Control Framework (TCF). However, only 47% actively track current tax policy developments on an international scale, 37% routinely test their own tax filings using data analytics, and 28% regularly conduct a program of mock audits. All the while, 40% say they execute a clearly defined, proactive cooperative compliance strategy, and 35% execute a clearly defined Advance Pricing Agreement (APA) strategy.

Kate Barton, EY Global Vice Chair – Tax, says:
“The COVID-19 pandemic has greatly amplified the tax risk profile of organizations. If organizations are to get ahead of tax risk and controversy, they must act now by investing in technology and implementing a global, centrally coordinated approach to tax risk and controversy management. Tax functions play a critical role in furthering an organization’s long-term value creation, building trust with all stakeholders and mitigating risk. As governments look to balance budget deficits, tax authorities are resuming suspended tax audits and litigation. Meanwhile, the digital transformation of the global economy – and the increasing volume of data and compliance requirements from tax administrations – means that organizations will inevitably face more risk for tough audits. Without a change in approach today, organizations face a real risk of financial penalties and reputational damage tomorrow.”

Luis Coronado, EY Global Tax Controversy Leader and Global Transfer Pricing Leader, says:
“The risks of non-compliance are high. Financially, there may be a greater risk of higher tax assessments, double taxation, penalties, interest and surcharges. As tax transparency and commitment to long-term value creation intensify in the public domain, tax controversy can create reputational harm, whereas operationally, tax controversy management can see internal resources redirected from other core tax department activities. Organizations must be proactive in building and sustaining tax-administration ready documentation that supports key transactions and tax positions. It is expected that by end of 2021, tax authorities will be enforcing tax policies at full strength, so it is imperative for organizations to act now, however incrementally, to reduce their tax risk profile.”

Related Topics:

Wladimir P. is a Content Editor at European Gaming Media and at PICANTE Media and covers a large variety of industries.

Continue Reading

Artificial Intelligence

Computime announces the launch of one of the first true Matter thermostats

Published

42 mins ago

on

May 27, 2024

By

computime-announces-the-launch-of-one-of-the-first-true-matter-thermostats

HONG KONG, May 27, 2024 /PRNewswire/ — Computime Group, a leading innovator in manufacturing, branded products and technology solutions, is proud to announce the upcoming launch of one of the first true Matter thermostats. This milestone highlights our commitment to pioneering smart home technology and providing our OEM and ODM customers with state-of-the-art solutions. 

Matter is set to revolutionize the Internet of Things (IoT) landscape as the next-generation standard for connected devices. Developed by the Connectivity Standards Alliance, Matter offers an open, universal protocol that is not bound to any single ecosystem, providing consumers with unparalleled freedom and flexibility. It ensures privacy-sensitive, secure, and reliable local controls without the need for cloud dependency, addressing the growing demand for enhanced privacy and security in smart home devices. 
The key principles driving Matter’s development include simplicity, reliability, interoperability, and security. By ensuring that all Matter-certified devices work seamlessly together, Matter eliminates the complexities often associated with smart home technology. This leads to greater compatibility, easier setup, and more robust user experiences across various device types, including thermostats.
Computime’s Matter thermostat represents a significant advancement in smart home technology, providing our customers with cutting-edge solutions and a short lead time to market, to meet the growing demand for interconnected and efficient home environments. We invite our customers to explore the capabilities of our new thermostat solutions. Computime’s extensive expertise in developing and manufacturing smart home devices ensures that our customers receive high-quality, reliable products with a short lead-time that stand out in the competitive market.
CONTACT: Computime Group, [email protected]

View original content:https://www.prnewswire.co.uk/news-releases/computime-announces-the-launch-of-one-of-the-first-true-matter-thermostats-302155918.html

Continue Reading

Artificial Intelligence

GVG featured on the 2024 Africa RegTech Horizon-100 list

Published

42 mins ago

on

May 27, 2024

By

gvg-featured-on-the-2024-africa-regtech-horizon-100-list

MADRID, May 27, 2024 /PRNewswire/ — Global Voice Group (GVG) now features as one of the top 100 Africa-focused innovative RegTech organizations that are set to power Africa to a $1 billion market size by 2025. 

This acknowledgment bears witness to GVG’s compliance monitoring capabilities within the Mobile Money (MM) ecosystem. GVG developed the Mobile Money Monitoring (M3) solution, an intelligent data platform that supports East African regulatory authorities in monitoring the fast-expanding MM market. Through M3, the authorities can ensure the security and integrity of the related financial transactions, as well as transparency and compliance, for enhanced revenue assurance. M3 currently monitors approximately 25% of the financial flows passing through MM platforms in East Africa, verifying over 90 billion USD worth of transactions annually.
Moreover, the platform is also in use in Central and West Africa, in the Republic of Congo and in Ghana. In Congo, M3 has brought the local telecommunications regulator, the ARPCE, 100% visibility and control over all utility payments made via Mobile Money to the government. In Ghana, it has contributed to an average annual growth of 20% in revenue since its deployment. Overall, M3 has captured, verified and analyzed 1 trillion USD in MM transaction value since 2014.
After demonstrating the relevance, effectiveness, and innovation of the M3 solution to the jury, composed of recognized leaders of the Regtech industry, GVG was shortlisted and, following the voting phase, earned a place on the prestigious list. The M3 platform uses machine learning to ensure effective oversight of the MM market, ensure regulatory compliance and detect suspicious transactions. Since its first implementation in 2013, GVG’s M3 solution has provided the relevant regulatory authorities with reliable MM ecosystem metrics to support data-driven decision-making, promote compliance within the market, and reduce fraud and revenue leakage.
Responding to the announcement, James Claude, GVG’s CEO, declared: “It is with a great sense of achievement that I see GVG featuring among the 100 top RegTech providers in Africa. On behalf of the whole company, I sincerely thank Africa RegTech Horizon, as well as our voters, for supporting us in what we do best: providing governments and regulatory authorities with the market insights they need to address the challenges related to the fast-expanding financial ecosystem.”
The Africa RegTech Horizon-100 list is a directory of African RegTech companies and solution providers compiled to showcase the products and services of the latter, as well as assist financial institutions, regulators, and governments in identifying high-performing and trustworthy RegTech providers.
About GVG
Founded in 1998 and present in 11 countries, Global Voice Group is a global provider of ICT and RegTech solutions for governments and regulatory bodies. GVG assists governments and authorities, through Big Data analytics, in their digital transformation and the effective promotion of compliant and truly inclusive digital ecosystems. The company monitors, collects and analyses data from crucial economic sectors and turns it into actionable information. We promote data-driven decision-making.
Discover GVG’s website: www.globalvoicegroup.com
Photo – https://mma.prnewswire.com/media/2421578/Global_Voice_Group_2024.jpg

View original content:https://www.prnewswire.co.uk/news-releases/gvg-featured-on-the-2024-africa-regtech-horizon-100-list-302155235.html

Continue Reading

Artificial Intelligence

Unlock an Exclusive Olympic Experience: Celebrating Live4Well’s Sold-Out Genesis NFT

Published

2 days ago

on

May 25, 2024

By

unlock-an-exclusive-olympic-experience:-celebrating-live4well’s-sold-out-genesis-nft

HONG KONG, May 25, 2024 /PRNewswire/ — The buzz surrounding Live4Well’s successful Genesis NFT membership launch on May 23 has captivated both traditional and web3 communities. Combining the power of AI technology and decentralized physical infrastructure (DePin) concept, Live4Well has infused new life into the NFT market. The overwhelming response to their first NFT sales, showcases the project’s immense potential. Renowned web3 community leaders from Azuki, Bored Ape, Pudgy Penguins, WELL3, etc have joined forces with Live4Well, propelling the Genesis NFT membership collection to its resounding success.

Live4Well aims to transform the wellness industry by creating a reward-based infrastructure that connects global fitness data, enhances their AI database, and drives the development of sports and wellness. Backed by a multi-billion family office, which recently invested $20 million in Live4Well, the project has gained support in both web3 and traditional spaces. The team believes that every drop of sweat and effort toward better health should be rewarded, fostering motivation and integrating exercise into daily lives for enhanced well-being.
Live4Well’s announcement of an Olympic-themed raffle for Genesis NFT holders reflects their commitment to connecting wellness between Web2 and Web3 platforms. This testament to Live4Well’s demand and innovative vision solidifies their position as a promising leader in the industry. Their integration of the Olympic signifies their determination to inspire a global audience, leveraging blockchain technology to create an immersive ecosystem that revolutionizes how individuals engage with fitness on a daily basis for better health. Live4Well’s dedication to bridging the gap between traditional practices and the digital landscape sets them apart as pioneers in promoting well-being on a global scale.
What is Genesis NFT membership?
The Genesis NFT unlocks a multitude of benefits for holders, including the opportunity to cash out their sportive income and access a range of exclusive physical products and services. In addition to future airdrops and angel round whitelist privileges, Genesis holders will receive VIP tailor-made product packs from an innovative German sportswear company, elevating their exercise performance to new heights. With over 400 million sweat points farmed by their users, they are eager to redeem through the Genesis NFT membership. These enticing incentives explain why there was a widespread eagerness to participate in this thrilling event.
Unlike typical projects that raise funds before launching products or services, Live4Well has already released its AI-powered app, amassing over 250,000 users as a community base actively engaging in daily exercise. This early success has fostered a promising community within the wellness industry, as users trust Live4Well’s roadmap and collaborative ventures. The growing traction from both ordinary individuals and web3 enthusiasts has intensified the demand for redeeming and cashing out sweat points, the project’s exercise-based rewards. Obtaining the Genesis NFT membership is now seen as an essential step for accessing the highest tier of benefits and cashing out sportive income.
What’s next for Live4Well?
Following the Genesis sales, Live4Well’s team will shift their focus to the upcoming token generation event (TGE) and a series of farming events. They also have exciting plans for partnerships and other collaborations in the global wellness and fitness industries. If you missed the initial launch, be sure to stay updated on Live4Well’s journey and join this extraordinary revolution.
Photo – https://mma.prnewswire.com/media/2421983/image.jpg
Photo – https://mma.prnewswire.com/media/2421640/Live4Well.jpg
Logo – https://mma.prnewswire.com/media/2421641/4725441/Live4Well.jpg
 
 

View original content:https://www.prnewswire.co.uk/news-releases/unlock-an-exclusive-olympic-experience-celebrating-live4wells-sold-out-genesis-nft-302155644.html

Continue Reading

Trending