The drive towards greater tax transparency has continued in 2017. The trend is driven by pressure on tax authorities to raise more revenue and increasing public disquiet about the well-publicised practices of some large multinationals and wealthy individuals, who apparently pay a disproportionately small sum in tax compared to the man in the street.
Executive remuneration encompasses a diverse range of practices and is consequently influenced by many different areas of the law, including tax, employment, securities and other aspects of corporate law.
At a macro level, the dominant trend affecting the private wealth arena in the last 12 months continues to be the impact of various supranational initiatives seeking greater transparency with respect to anti-money laundering regimes and tax information exchange. I propose to focus in this year’s introduction on the central importance of the concept of ‘beneficial ownership’ and the theme of convergence in the increasingly interconnected arenas of anti-money laundering policy and tax information exchange.
Since the financial crisis in 2008, there has been continuous public attention on multinationals' tax position - which, for the most part, turns on their transfer pricing policy and whether this properly aligns the taxable profits in each country with the value-generating activities taking place there.