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Everyone has to deal with taxes. Rules tend to change regularly, and the tax system can be perceived as complicated. PwC wants to help improve the system and make it comprehensible, by sharing knowledge about existing laws and regulations, and by sharing ideas about what can be changed or done differently.
The Dutch tax system has not kept pace with the challenges being faced by society, such as increased inequality, climate change, an ageing population, new business models and, of course, the consequences of the COVID-19 crisis. In practice, this leads to bottlenecks. PwC wants to offer a firm foothold when resolving these bottlenecks. In October 2020, PwC sent a document called ‘A foothold for new tax policy’ to the Parliamentary Committee for Finance. This was the first response to the report ‘Building blocks for a better tax system’. In addition, in May 2020, PwC shared its vision about the taxation of multinationals.
PwC also conducts research under instruction from the Ministry of Finance. For instance, we conducted research into the availability of data for a box-3 levy based on actual returns, we identified how various countries tax multinational companies and we investigated how various countries deal with conduit companies.
In July 2020, PwC Netherlands published an updated version of the ATAD 1 and 2 implementation overview, which relates to the anti-tax avoidance directives of the European Commission. The new overview is an updated version of the overview provided in November 2019, and contains information about the implementation of ATAD 1- and 2 rules within the national tax legislation of EU member countries up to 1 June 2020. This overview was also supplied to the Parliamentary Committee for Finance.
In February 2021, independent think-tank The Ex’tax Project presented a delta plan for tax reforms. The plan was realised by Ex’tax in collaboration with Deloitte, EY, KPMG and PwC, and was presented to the government. The report shows that if taxation shifts from employment to pollution and consumption, it will be possible to cut CO2 emissions and reduce the use of raw materials. Based on the basic principle that ‘the polluter pays’, an extra 23 billion Euro can be generated to reduce employment-related taxation for households and employers. A second report was released in 2022: ‘The taxshift’. This study explores how financial incentives in the tax system could support an inclusive circular economy. Edwin Visser and Niels Muller helped to compile these reports on behalf of PwC.
The global landscape for taxation and regulation is changing quickly. Not only due to changes in legislation, but also due to changes in fiscal control regulations, codes of conduct, countless international initiatives about fiscal transparency, and measures against tax avoidance. All these changes fall under Corporate Tax Governance: formulating a long-term tax strategy, clear roles and responsibilities, fiscal risk management and fiscal transparency. PwC compiled a brochure called ‘Corporate tax governance. Creating a sustainable tax approach in times of fundamental change’ and shared it with e.g. members of parliament in the spring of 2020.
The world of taxation is continuously changing. For example, in recent years, this involved taxes on the digital economy, the exchange of taxpayer information between countries, and the definition of ecologically sustainable investments (EU Taxonomy). These developments are partly being shaped by the European Commission by modifying existing guidelines or developing new guidelines. PwC has responded to various consultations by the European Commission.
Transparency about taxation is important. That is why the Dutch Association of Investors for Sustainable Development (VBDO) and PwC work together to compile the ‘Tax Transparency Benchmark’. We have been doing so since 2015. The results of the 2022 edition show that Dutch listed companies are now more fiscally transparent than the year before.
PwC advises clients about taxation and uses the ‘Tax Transparency Benchmark’ to assess the fiscal transparency of companies. Naturally, we are also open in this regard. That is why we have published our fiscal strategy and fiscal code of conduct. This allows us to give our advisers a foothold.
Social enterprises combine their pursuit of social impact with a healthy business model. We believe in their capabilities. That is why PwC helps social enterprises by sharing its knowledge and expertise - pro bono and during work hours. We also support these companies individually, and can see which issues they encounter e.g. from a legal perspective. That is why PwC laid the foundations for a social Ltd. and shared these ideas with the Secretary of State for Economic Affairs and Climate. PwC professional Pjotr Anthoni also took part in a Social Ltd. expert group for the same Ministry.
Under instruction from the Ministry of Finance PwC has reconstructed the timeline of the memo Palmen. This memo is about childcare benefits. PwC also examined the fraud signaling facility (FSV) of the Tax and Customs Administration, resulting in several reports (1, 2, 3).These studies have been discussed in parliament.
Woordvoerder, PwC Netherlands
Tel: +31 (0)64 242 51 45