The importance of education for tax and transfer pricing professionals
The world’s approach to taxation and transfer pricing is changing significantly. Now more than ever, taxpayers are determined to comply and cooperate with tax authorities. There’s an ever-growing awareness among global organizations and multinational enterprises (MNEs) of the importance of upholding best practices for tax and transfer pricing. Are you taking the time to work on education and skills to keep your organization compliant?
Why is education important for tax and transfer pricing professionals?
Laws and regulations surrounding tax and transfer pricing are constantly changing, so it’s essential to complete regular training to ensure your education and skills are up to date.
In the past decade alone, we have seen the introduction of the Base Erosion and Profit Shifting (BEPS) initiative by the Organisation for Economic Co-operation and Development (OECD), the adoption of the multilateral instrument by over 78 jurisdictions and key developments on taxation for the digital economy. This is a fast-moving industry that can be impossible to keep up with if you do not have access to credible resources and updates.
On top of this, global organizations are increasingly in the spotlight, with consumers and stakeholders caring about whether companies are transparent and ethical in terms of their financial conduct. MNEs know that, if they are to keep their good reputation among their customers and partners, they need to be seen as being fair in their financial dealings.
The OECD focuses on education
Perhaps one of the most comprehensive educational resources currently available on this topic is the OECD’s Building Tax Culture, Compliance and Citizenship: A Global Source Book on Taxpayer Education, which was released on June 30th 2015. The book offers ideas and inspiration for educating taxpayers, with strategies from more than 28 different countries. It is an invaluable resource whether you’re a tax or transfer pricing professional or you need to develop an education program to help others gain the education and skills they require.
For the OECD, education is about building on this “culture of compliance” that we’re already starting to see. It is also about boosting morale around the idea of tax. By offering education programs, the idea is to make taxpayers’ responsibilities clearer and easier to understand, which, in turn, makes taxpayers feel more in control when it comes to staying compliant. This focus shifts taxpayers’ perceptions of tax authorities from agencies that collect their tax to service providers that help them stay compliant and understand their responsibilities.
As the OECD says in the book’s blurb, “Now more than ever, governments are striving to mobilise greater tax revenue domestically. To do so, they are increasingly reaching out to inform and engage today’s – and future – taxpayers. They aim to foster an overall ‘culture of compliance’ based on rights and responsibilities, in which citizens see paying taxes as an integral aspect of their relationship with their government. Taxpayer education is the bridge linking tax administration and citizens and a key tool to transform tax culture.”
Think like a scientist
The world of tax and transfer pricing is constantly changing. As such, you cannot afford to just follow what has gone before, or to go with an option that looks easiest or just feels the most appropriate. You need to think like a scientist – constantly questioning and gathering as much information as possible to determine the best course of action. This should be an ongoing process. By participating in regular training courses, workshops and webinars, and always reading about new developments and ideas, you can make sure you’re always working on your education and using up-to-date methods that will help you stay compliant.
Boost your education and skills with RoyaltyRange
Here at RoyaltyRange, we provide a number of educational transfer pricing workshops for our clients, as well as hosting online webinars and providing international tax training, open courses, conferences and in-house training. You can boost your transfer pricing knowledge, keep up to date with the latest industry developments and gain practical skills to carry out your tax and transfer pricing projects.
If you’d like to work on your education and skills and want to hear more about our training workshops, get in touch with us at RoyaltyRange today. We’ll help you think like a scientist!