Dealing with digitalization's impact on tax issues

Augmented reality and virtual reality have the potential to influence the future of corporate reporting and auditing, although widespread adoption could take some time. The technologies might have particular appeal among auditors, who could potentially use digital solutions to cut down on travel and site visits.

The China Securities Regulatory Commission plans to continue opening access to markets for foreign entities, despite concerns about recent imposition of trading restrictions. "Opening up and cooperation is the inevitable trend in the integrated development of global capital markets," Chair Yi Huiman says.

The Singapore Exchange has published new rules allowing special-purpose acquisition companies to list on its main board, making the city state the first major Asian financial hub to welcome such listings. The new rules set the minimum capitalization of a SPAC at the equivalent of about $111.6 million.

Prime Minister Justin Trudeau and the Liberal Party have outlined plans to raise taxes on banks and insurers to finance new spending on health care and other priorities. The plan -- part of the party's platform for a Sept. 20 federal election -- also involves fighting tax evasion.

Organizations are reviewing their approach to business travel in light of the coronavirus pandemic and a focus on sustainability goals. "Plans are being put in place with the understanding that things can change based on guidelines, along with concerns over the comfort and safety of staff," notes Victoria DeBoon of SAP Concur Canada.

British Prime Minister Boris Johnson has announced plans to raise taxes on workers and companies to shore up finances for health and social care programs. The levy will amount to a hike of 1.25 percentage points on National Insurance payroll taxes and an equivalent increase to a shareholder dividend tax.

About 14% of the profits generated by the largest European banks are booked in tax havens, according to a report by the EU Tax Observatory. The data "suggests that the profits booked in tax havens are primarily shifted out of other countries where service production occurs," the report notes.

A senate mining committee in Chile approved a bill that would increase the tax burden on copper. Chile is looking to generate profits from the industry as it addresses inequalities that have been intensified by the pandemic.

House Democrats have revealed parts of a $3.5 trillion bill that would require universal paid family leave and bolster health coverage. Work on tax proposals to fund the bill could be coming soon.

A report from the Pandemic Response Accountability Committee finds 57,500 Paycheck Protection Program loans totaling $3.6 billion were given to borrowers who might have been ineligible.

The 2021 Global Forum has gone virtual, and we hope to see you online for a convenient half-day event that features timely insights on value pricing and making sense of a disrupted future. To accommodate all time zones, content will be repeated over two sessions on October 25 and 26. Visit the conference website for details, and register today!