Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

December 15, 2020
2020-6574

EY Global Tax Controversy Flash Newsletter (Issue 29) | What’s next for tax policy and controversy in Asia-Pacific?

The Asia-Pacific region was the first to experience the full brunt of the COVID-19 pandemic, including its economic fallout. Today, many of the jurisdictions in the region are experiencing sustained recoveries. However, as governments look to reduce their deficits and recoup fiscal and monetary stimulus outlays, taxes — both direct and indirect — will likely rise in Asia-Pacific with targeted rate increases, broadening of the tax scope, or the introduction of new taxes. The challenge for governments will be to balance this revenue need with their desire to create a pro-growth and investor-friendly economic environment. Meanwhile, tax authorities are accelerating their digital transformation and becoming more effective and adept at collecting, analyzing and using information — which could lead to more targeted tax controversy measures.

Prior to the COVID-19 pandemic, governments in Asia-Pacific had already increased their focus on ways to tax digital businesses. In a COVID-19 environment, as a greater portion of business activity moves online, governments in Asia-Pacific are closely monitoring the developments related to Base Erosion and Profit Shifting (BEPS) 2.0, a project by the Organisation for Economic Co-operation and Development (OECD), which aims to address the tax challenges of the digital economy. These governments may look to industries impacted by the project's "Pillar One" and "Pillar Two" to balance their budgets, replenish reserves, and evaluate how their current and proposed unilateral actions to tax digital businesses will be affected. Read more about how to manage these challenges in the recent EY article, How Covid-19 Has Transformed Tax Policy in the Asia-Pacific, reproduced with permission (Published 2 December 2020. Copyright R 2020 The Bureau of National Affairs, Inc. 800- 372-1033).

Additional information and links to past newsletters can be found in the attached PDF.

______________________________

Flash Newsletter Attachment

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more