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September 16, 2020
Seven steps for tax as governments pivot from stimulus to collection
In response to COVID-19, governments around the world offered unprecedented fiscal support and stimulus packages to assist businesses and protect jobs. Many also relaxed tax compliance obligations – albeit temporarily. In some instances, physical audits and court hearings were paused or suspended. The overarching aim was to help ease cash flow and relieve staffing issues.
But because many governments took on additional debt to provide this relief, it is reasonable to expect they will eventually return their focus to tax increases and tax collection. With this comes the increasing potential for tax enforcement and controversy. To minimize their risks, businesses should consider taking steps now to establish internal best practices and develop robust working relationships with tax authorities.
Prevention of tax controversy is far less damaging and time-consuming than trying to cure a problem once it has occurred. An EY article provides details.