The tax environment is dynamic and ever-evolving with rapid globalization and economic shifts. Progressive and bottom-line focussed managements have realized that taxes (both direct and indirect, domestic and international), should be viewed as a dynamic item of cost rather than a passive charge on the profits.

With the introduction of the General Anti-Avoidance Rules (GAAR), treaty re-negotiation, Place of Effective Management (PoEM) concept, tax payers are faced with a regime with increased complexities and challenges. At the international level, Base Erosion and Profit Shifting (BEPS) project as well Countries signing the Multilateral Convention (MLI) do have an impact on the manner in which tax payer’s carryout their business and these need to be addressed.

There has been a tremendous change in the way tax authorities function today and in the information required for undertaking various tax compliances. The advent of technology will only augment such requirements in the future. Accordingly, businesses that are operating effortlessly to progress globally would need to be more agile and proactive to meet the requirements of tax authorities. Since the last few years, Indian revenue authorities’ emphasis is towards expansion of the tax base through digitisation and e-governance. In addition, there could be situations of tax uncertainty and litigation which might result in tax demands. Accordingly, it has become crucial to understand the potential impact of new developments in the tax and regulatory spheres and consequently prepare for the challenges.