Increasing employment for tax consultants due to complex corporate taxes

Shady structures

After the 2008 crisis, it was revealed how tax avoidance took place on a massive scale among large companies. 'After the banking sector, journalists delved into the tax accounts of large corporates and it turned out that tax payments were not only rarely a low priority, but were also quite often made through shadowy structures,' says Kavelaars. 'Before that, those aggressive tax structures were not seen as much of a problem. After all, it benefited the business community and therefore the economy. But after revelations in the Panama Papers, social indignation grew about double and triple dips, for example. Something had to be done.'

Many countries recognized, according to Kavelaars, that they were missing out on huge tax revenues. The Organization for Economic Cooperation and Development (OECD) therefore came up with a radical plan consisting of fifteen action points. ‘The fact that the plan was adopted was a victory in itself,' says Kavelaars. ‘It was thought that the business community would be able to do as they pleased, but nothing was further from the truth. Governments realized that they were losing hundreds of millions of euros and were determined to do something about it.’

Complex tax laws

Yet the OECD's plan is not ideal. Although it concerns measures, each country can and must make its own national legislation. ‘This results in a mishmash of translations of the action plan. Except in the European Union, where in many cases the European Commission has turned it into legislation so that there is coordination within the EU.'

In the meantime, a lot of regulations have been added and the tax laws for corporates are becoming complex. 'I can only see the employment of tax advisers increasing. But the tax authorities also have a lot of work to do with these international developments. Now the European Commission wants to move towards uniform tax treatment of companies within the EU. The EU even wants to levy its own taxes. But this would mean that member states would have to give up tax sovereignty. That's not going to happen, at least not for a long time.’