IOTA Report for Tax Administrations - ATP - Aggressive Tax Planning

Throughout history taxation has been a subject that has drawn a natural resentment from its contributors in all but the fewest of cases. It is an expectation that businesses and individuals will contribute towards the services and facilities provided by their government(s) in the form of taxes. However, this does not stop organisations wishing to pay as little as possible towards these amenities, whilst delivering the best dividend or return to their investors.

One approach to this conundrum is the application of Aggressive Tax Planning (ATP). This topic has plagued tax administrations for many years and is one which is not unique to any country or administration. By adopting an “almost legal” stance to the payment of taxes these organisations strive to find any loophole or advantage they can from the legislation and maximise it to their own advantage.

As part of the IOTA Area Group activities into Large Taxpayer Treatment and Audit it was decided that members should be approached to determine how their administrations were addressing the issues of Aggressive Tax Planning. Sixteen member administrations responded to a questionnaire on the subject and this report examines what Aggressive Tax Planning is, how to fight against it, what legislation is in place to help tax administrations’ counter its effect, summarises the findings of the team from the responses they received and makes recommendations as to how to tackle this ongoing problem.

Particular thanks for the work carried out must go to Mr. Jean Gourmandin from France who compiled the findings, as well as to the other task team members: Mr. Gentian Zoto from Albania, Mr. Gerhard Steiner from Austria, Ms. Mariana Toskova from Bulgaria, Ms. Tornike Kutchava from Georgia, Mr. Niels N.A.T. Smetsers from the Netherlands, Mr. Reidar Rasmussen from Norway, Ms. Dalila Kutišová-Luknárová from Slovakia, Mr. Eric Carlberg from Sweden and Ms. Daniela Tesic from the Republic of Srpska (B&H).