A US Domestic and Global Tax and Fiscal Landscape In Motion
Individual US states and countries worldwide have recorded some of the sharpest economic contractions in modern history, which has left many businesses struggling to survive. These states and countries have responded quickly by implementing a variety of tax relief measures, fiscal packages, export-oriented subsidies, or have deferred taxation to protect companies and their struggling economies. These policies were meant to be stop-gaps to weather the storm caused by Covid and will leave government bodies looking to makeup revenue and operating shortfalls in coming years.
A New Reality for Many Companies
Companies operating across the US and around the world developed operational models centered around traditional office sites, state and country boundaries, and nexus establishment rules. With the shift to distributed workforces, the level of complexity and compliance risk is compounded.
Tax increases will be needed across states and countries to bring down record levels of government debt amassed during the coronavirus crisis. Companies should also expect to see the emergence of new regulations and increased audits as governments look to recover from the massive economic shortfalls.
Comprehensive disclosure and filing frameworks (OECD BEPS Action 13, GRI Disclosures, etc.) are already developed, with plans by governments to increase country-to-country data sharing. Governments will be able to audit companies across borders on an unprecedented scale with advanced analytics and automation.
The Future of Tax: Rapidly Shifting Policies
Companies with distributed US and global operations are likely to see immigration and tax authorities becoming more and more aggressive in their pursuit of non-compliance. Companies can expect:
- An increased number and frequency of audits requiring detailed supporting data
- Requirements to disclose company and employee activities with increased granularity
- New legislation and risk of new types of corporate offenses
- More stringent enforcement of travel and immigration rules
- The need to adapt quickly to changing fiscal and immigration policies
How Technology Can Help
Your company can tackle these regulatory and fiscal policy changes by ensuring you have the right data at your fingertips. A modern technology platform can help identify, assess, and prevent tax and compliance risk for your newly distributed workforce. Topia Compass arms you with advanced analytics to assess compliance risk, triggers alerts to avoid breaches, and provides audit-ready reporting.
Whether you have complex multi-state or country projects, stranded executives, or possible nexus, and permanent establishment risk exposure, Topia Compass can help you minimize risk and take action.
What We Can Provide with Topia Compass
- Best-in-class distributed workforce and compliance technology solution
- Automation of otherwise labor-intensive location record-keeping tasks
- Streamlining of document collection, pre-travel assessment, approvals, and A1/ Posted Worker filing workflows
- Reliable and high-accuracy record-keeping for your workforce location (travel, VPN, calendar, GPS)
- Integrations with the leading local US, European legal and tax firms
- Operational “out-of-the-box” with integrations with the leading HR, travel, and financial solutions – requiring limited or no IT involvement
- Proactive and quick reporting so you can assess your tax and risk exposure based on historical and current data
- Intuitive, consumer-grade interface that doesn’t require advanced tax/finance or legal expertise