A Never-ending Story:
The Evolution of Taxation & the Tax Advisor’s Role
The relevance of the tax advisor amidst constant change
Yesterday: Revisiting the Tax Question
Among all the uproar, legal battles and headlines surrounding taxation, it is easy to forget its core purpose: to enable governments to pay for public services. The concept is an old one, even ancient Egyptians could not escape their tax obligations.
For thousands of years we have had taxes, and for an equal number of years we have argued about them. Most can agree with the logic — a legitimate expectation that all who belong to a system should pitch in fairly. There is only one problem with that rationale: the objectivity of fairness.
How do we keep taxes fair? At their root, this is what BEPS, the Anti Tax Avoidance Directive, the Common Consolidated Corporate Tax Base and countless other European tax initiatives are pursuing. Should the rich pay more? Should internationally operating corporations pay taxes abroad? Should they pay twice? Should Europe streamline its tax scheme?
Today: A Tax Advisor’s Duty in the Current Climate
We live in an increasingly globalized world with more complex corporate structures than ever before. It’s fair to say that the job of the tax advisor is certainly not getting easier.
As governments race to adapt decades-old laws — in the never-ending hunt for fairness — it seems that tax guidelines shape-shift as often as the clouds.
This climate has only complicated tax planning for businesses and professionals looking to operate ethically and intelligently. The 2008 financial crisis heightened the desire for change. A call for increased transparency and compliance requirements have company accounts under particular scrutiny. Mifid II and GDPR regulations are two such examples.
Now, more than ever, it is critical that businesses and individuals make careful and appropriate tax planning decisions. Their reputations, efficiency and security depend on smart tax activity.
Stricter financial reporting and due diligence requirements do not just affect giant corporations. Small and midsize companies are held to those high standards as well.
When working with such clients, Fiduciary Tucci & Partners makes sure that their tax situations are airtight from head to toe. Business structuring, mergers, acquisitions and international expansion require a level of coordination and overall knowledge that an objective expert is best positioned to supply.
Every tax advisor should continuously follow ethical guidelines and ensure no conflicts of interest, another reason why companies choose to bring in external support.
Tomorrow: The Future of Tax Advisory
With the birth of regtech and data analytics, the standards for tax practices will continue to rise, a reality we should welcome, not fear. Paired with increased tax regulations on the European and local level, new technology will allow little room for error.
Large corporations will cope with expensive analytics tools and full-time compliance teams. Smaller companies, on the other hand, will need to meet equally high standards without that aid.
Fiduciary Tucci & Partners eats, sleeps and breathes taxes, maintaining a clear picture of the business ecosystem, including the new directives and best practices being churned out by the European Commission and Luxembourg‘s government.
Nobody knows exactly what the future has in store, but we do know that a quality tax advisor today will save your company headaches and troubles, regardless of what tomorrow brings.
Employing Students During School Break
A how-to guide with key rules & facts
Les vacances scolaires arrivent et c’est le moment pour l’employeur d’engager des jeunes en contrat étudiant, c’est aussi une opportunité pour remplacer du personnel en vacances.
Pour beaucoup d’élèves et étudiants, c’est l’occasion de découvrir le monde du travail.
Qui peut être engagé comme élève ou étudiant ?
Share your goals with us & ask how we can help you get there. Questions about trends, regulations & requirements? Curious about Luxembourg? Fiduciary Tucci & Partners can help answer your queries & find solutions.