Taxpayers are working to prepare for a higher compliance burden next year
Tax policymakers have been busy this week setting their plans for the year ahead. At more local and regional levels, governments have released new tax laws and guidance. While the OECD has been occupied with the FTA’s plenary meeting and its 2021 agenda, taxpayers are working to prepare for a higher compliance burden next year.
ICAP becomes permanent
The FTA has agreed to make the international compliance assurance programme (ICAP) permanent, allowing multinational enterprises to reduce their TP audit risks.
The scheme has been running as a pilot programme since 2017. It allows taxpayers to gain tax certainty from the countries involved by explaining their business model and tax arrangements once to multiple tax authorities and gaining outcome letters that reassures them of being tax compliant. It has, in some cases, prevented unnecessary audits or led to more cooperative joint audits.