Reference no: EM132854999

Background:

• In the final weeks of 2017 a leading tax expert suggested that "a whirlwind of international tax changes has swept the globe". He also went on to say that for companies operating in Europe there is no end in sight to the pace of change. The final recommendations on base erosion and profit shifting (BEPS) from the OECD have been endorsed by the EU. In fact a number of European governments have already implemented large parts of these proposals ahead of schedule.
• The third quarter of the year saw the European Commission in the spotlight with its landmark decision that the technology giant Apple must repay no less than €13 billion of taxes to the Irish government. This ruling was based on the view that the favourable tax treatment was effectively state aid and hence the Irish government had broken EU law. At the same time countries across the world continue to compete by reducing the rate of corporate taxes. Many commentators suggest that the UK government will cut the corporate tax rate to 10% if the country fails to negotiate a trade deal with the European Union as part of the Brexit process. In a separate development earlier in the year the government of Hungary announced it would become the tax haven of Central Europe with a plan to reduce corporation tax to a mere 9%.

Question 1: Critically evaluate and discuss the major developments during 2017 in corporate taxation from the perspective of multinational companies and their auditors, governments and other stakeholders.

Question 2: Apply appropriate knowledge, analytical techniques and concepts to problems and issues arising from both familiar and unfamiliar situations;

Question 3: Think critically, examine problems and issues from a number of perspectives, challenge viewpoints, ideas and concepts and make well-reasoned judgements;

Question 4: Present, discuss and defend ideas, concepts and views effectively through formal language.