Companies with global operations are
struggling to comply with increasing regulation and the growing
complexity of financial reporting and tax rules, according to Ernst
& Young research.
The Seizing the opportunity in Global
Compliance and Reporting survey found that 64% of
financial executives from the world’s largest companies experienced
unplanned tax audits within the past year, with almost half
receiving unexpected tax assessments or penalties.
Nearly two-thirds of the 200 respondents said
changes in rules will challenge their compliance and reporting
processes.
E&Y’s global director of global compliance
and reporting services Steven Shultz said globalisation and the
drive for sustainable cost advantages had changed the way companies
position their financial and tax operations.
“Companies are seeing an increasingly complex
regulatory landscape and closer, cross-border collaboration by tax
authorities under pressure to increase revenue. It is imperative
that global businesses update their processes for statutory
financial and tax filings to maintain compliance and
competitiveness,” he said.
Shultz said that by clarifying global
compliance and reporting requirements, process ownership and
geographic coverage, “companies can improve effectiveness, enhance
visibility and avoid costly and time-consuming surprises across the
world”.
