Multinational Corporations Face Major Challenges From Governments Seeking to Augment Revenue Through Indirect Taxes, Says Ernst & Young in New BNA Report

ARLINGTON, Va., July 30 /PRNewswire-USNewswire/ -- The global financial crisis has forced many governments around the world to balance their books, and they are increasingly looking to indirect taxes on consumption, including value-added taxes (VAT), goods and services taxes (GST), and sales taxes to make up the shortfall. A new guide written by Ernst & Young appearing in BNA's Daily Tax Report and Daily Report for Executives today, explains what the increased focus on VAT and GST compliance and enforcement will mean for businesses, including the potential for more administrative requirements, stiffer penalties for errors, and an increased compliance burden.

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"This report contains vital information for multinational enterprises and tax administrations alike," says Daily Tax Report Managing Editor Rebecca McCracken.

VAT and GST: An Ernst & Young Guide on Burdens for Multinational Companies, reports that multinational enterprises could face increased costs and resource requirements as they adapt their business and enterprise resource planning systems to comply with the obligations imposed by different tax administrations around the world. But as VAT obligations multiply, full compliance becomes harder, and this increases the likelihood of making errors and incurring penalties, thereby enlarging the tax risk, write Ernst & Young LLP authors Philip Robinson, Jeffrey Saviano, Robin Parsons, Adrian Ball, William Methenitis, and Neil Byrne.

"Nearly 140 countries have some type of consumption tax, and that number is increasing, with Malaysia and India planning to introduce VAT regimes and other countries considering or implementing rate increases. Corporations are undergoing increased scrutiny by revenue authorities, and many are putting global directors in place to manage their growing indirect tax burdens and to handle complex rules," says Saviano, Americas Director of Indirect Tax Services, State and Local Income Taxes, and Consumption Taxes for Ernst & Young, in a one-on-one interview with Daily Tax Report editor Alison Bennett also appearing in the July 30 editions of Daily Tax Report and Daily Report for Executives.

About Daily Tax Report

BNA's award-winning Daily Tax Report provides full text of key legislative, regulatory, and judicial documents. The status of tax-related bills pending in Congress is updated with Hill Watch, a chart published at key intervals during each session, in addition to daily listings of congressional debates, reports filed, committee actions and meetings, and hearings scheduled. You also receive periodic special supplements and an annual Outlook report, along with perspective and trend articles by outside experts, interviews with key policymakers, and analysis by BNA editors. For more information about our products and services, visit BNA Tax & Accounting online at www.bnatax.com.

SOURCE BNA Tax & Accounting

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