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Businesses throughout the world are struggling to deal with the demands of a tough new corporate tax environment, according to new research.
A report, by professional service provider KPMG International, indicates that the drive has been precipitated by various factors including regulations to protect investors and shareholder demands for information.
The report explains that the tougher tax developments started in the US with the 2002 Sarbanes Oxley Act and then began to take hold in Europe with the Combined Code in the UK and the Loi de Securite Financiere in France, both introduced in 2003.
Greater pressure from company shareholders has been marked in many countries. Some 70 per cent of companies KPMG International surveyed in the Americas reported increased demands for more and better information on tax.
According to the report, businesses have begun to recognise the necessity of developing more formal tax planning and tax risk management strategies.
However, it emphasises that under half of the business start-ups and other businesses surveyed have such a strategy in place at present.
Chris Scott, partner in KPMGs Global Tax Outsourcing practice and part of KPMGs UK firm, told Tax-news.com: "Its only two years since tax began appearing regularly on boardroom agendas, and it may still be seen by many as too complex or too specialised a subject to merit much board time.
"But things are changing, and rapidly. I believe [that] those who see tax management as a source of value and are prepared to invest in it could be stealing a march on their competitors in the eyes of the market."
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