@BDO USA Tax...BDO KNOWLEDGE Webinar Series ‒ GLOBAL TAX OUTSOURCING: Centrally Managing Global Risks, Resources and Responsibilities Page 1 @BDO_USA_Tax BDO USA, LLP, a Delaware

BDO KNOWLEDGE Webinar Series ‒ GLOBAL TAX OUTSOURCING: Centrally Managing Global Risks, Resources and Responsibilities Page 1

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BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. @BDO_USA_Tax


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CPE AND SUPPORT

CPE participation requirements ‒ to receive CPE credit for this webcast: • You’ll need to actively participate throughout the program. • Be responsive to at least 75% of the participation pop-ups.

Certificate of attendance: If you are logged in the entire time and respond to all participation pop-ups, you will be able to print your certificate from the “Participation” section at the end of the webcast. If you log out before printing your certificate: • BDO USA professionals ‒ CPE will automatically be issued in CPE Tracking & Reporting at

the end of every week. A copy of your certificate will be sent after you have been issued credit.

• All others will be emailed instructions on how to access your certificate.


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CPE AND SUPPORT (CONTINUED)

Group participation – to receive credit: • Sign-in sheets must list a Proctor name and CPA license number. • BDO USA professionals ‒ submit your sign-in sheets using a Training & Development Request in BDO

Service Now found at: BDOWorld > Applications & Resources > BDO Service Now > Click “Service Catalog” in the left menu, then under Training & Development, “Make a Request”.

• Clients and Contacts ‒ email sign-in sheets to [email protected] within 24 hours of the webcast. • Alliance Members ‒ should proctor their own group participants. This process is detailed in the

LearnLive Participant Guide, which can be found by searching “LearnLive Participant Guide” on the Alliance Portal. Call LearnLive Support below for questions.

• Unfortunately, we cannot currently support group CPE for International Firms. Those wanting CPE must register and log in on their own computer.

Q&A: Submit all questions using the Q&A feature on the lower right corner of the screen. The presenter(s) will review and answer all questions submitted.

Technical Support: If you should have technical issues, please contact LearnLive: • Click on the Live Chat icon under the Support tab, OR • Call: 1-888-228-4088.

mailto:[email protected]

BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

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BDO KNOWLEDGE Webinar Series GLOBAL TAX OUTSOURCING Centrally Managing Global Risks, Resources and Responsibilities Polina Vesna, Senior Manager, International Tax Services, BDO USA, LLP October 23, 2014


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AGENDA

• EU mandatory audit rotation • Changing foreign reporting requirements • Trend in foreign electronic filings • Worldwide compliance


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EU MANDATORY AUDIT ROTATION


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EU MANDATORY AUDIT ROTATION

EU Legislation • A mandatory audit firm rotation requirement and other audit market reforms

have formally became part of European Union law Timeline • Beginning after June 17, 2016 Impact • European listed companies • Financial institutions and banks authorized to do business in EU


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PROHIBITED SERVICES

Auditors are prohibited from providing certain tax and other services For example: • Preparation of tax forms and calculation of direct and indirect tax • Calculation of tax provision/deferred taxes • Bookkeeping and preparation of accounting records and financial statements • Payroll services • Tax Consulting services


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CHANGING FOREIGN REPORTING REQUIREMENTS


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CHANGING REPORTING REQUIREMENTS

Transfer Pricing Requirements OECD’s Adoption of Country By Country Reporting Increased Reporting Requirements From Tax Authorities Common themes:

I. Transparency relating to foreign related party transactions II. Increased focus on substance


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OECD’S PLAN ON BASE EROSION AND PROFIT SHARING

• Main focus areas: Permanent establishment Tax treaty shopping Digital transactions Hybrid arrangements Transfer Pricing documentation and reporting

• Expanding pool of localities focusing on Transfer Pricing

• Exchange of information


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OECD’S ADOPTION OF COUNTRY-BY-COUNTRY REPORTING

A summary addressing, by jurisdiction, the following: • Allocation of revenue between related and unrelated parties; • Profit (loss) before income tax; • Taxes paid (on cash basis); • Stated capital; • Accumulated earnings; • Number of employees and • Tangible assets other than cash and cash equivalents Plus, this report should also identify the business activities conducted in each jurisdiction CbCR is designed for transfer pricing risk assessment and for evaluating other BEPS related risks


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TRENDS IN REPORTING REQUIREMENTS FROM TAX AUTHORITIES

• Transparency

• Substance

• Country-to-country collaboration

• Exchange of information provisions in tax treaties and other bi-lateral agreements

• Foreign Account Tax Compliance Act (FATCA)

• Complex regulations

• Penalties and no Statute of Limitations for non-compliance


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MANDATORY ELECTRONIC FILING AND WORLDWIDE COMPLIANCE


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MANDATORY ELECTRONIC FILING Jurisdiction Tax Information

Austria Federal Corporate Income Tax Forms must be filed electronically. There is an online one-stop business service, the Unternehmensserviceportal, through which businesses can file their tax returns.

Bangladesh In June 2014, it was announced that an electronic filing system will be created by end-2015. Belgium In July 2013, legislation was enacted which will make online filing mandatory to all companies from 2015. Brazil Electronic filing is mandatory.

Canada E-filing is mandatory for corporations with annual gross revenues exceeding CAD1m, except insurance corporations, non-resident corporations, corporations reporting in a functional currency and corporations exempt from tax under Section 149 of the Income Tax Act. Corporations which do not comply with the mandatory e-filing rules are liable for a penalty of CAD1,000.

Costa Rica Electronic filing is obligatory.

Croatia Electronic tax filing has been introduced in Croatia, and is compulsory for VAT registered taxpayers with annual turnover above HRK800,000.

Ecuador Forms must be filed electronically. Faroe Islands Electronic filing is mandatory. France From October 1, 2012, forms must generally be filed electronically.

Germany Corporate income tax forms must be filed electronically; however, if extraordinary hardship can be proven, the form may be submitted in paper format.

Greece E-filing is mandatory for specific forms.

India Mandatory electronic payment of taxes for corporate payers liable to audit under Section 44AB of the Income Tax Act came into force on April 1, 2008.

Ireland All companies are required to file corporate income tax forms and pay taxes electronically.

Japan Forms which can be filed electronically include: Federal Corporation Tax forms, The Consumption Tax form, and Withholding Tax forms.

Latvia Forms must be filed electronically. Morocco Forms can be filed electronically; for businesses with turnover in excess of MAD50m, it is required. Netherlands Federal Corporate Income Tax Forms must be filed electronically. Philippines Electronic filing is mandatory. Portugal Forms must be filed electronically. Russia Forms must be filed electronically in most cases. Serbia From July 1, 2014, electronic filing is mandatory. Slovenia The submission of tax forms electronically was made mandatory in January 2009. Switzerland The rules for electronic filing differ can tonally, but electronic filing is not mandatory. Taiwan Some tax forms can be filed electronically.

Tunisia Forms can be filed electronically. This is obligatory for companies with turnover above an amount designated by the authorities.

Turkey Forms can be filed electronically. With effect from September 1, 2014, e-filing is compulsory for taxpayers with mineral oil licenses and those trading in goods subject to Special Consumption Tax.

United Kingdom Online filing is mandatory for businesses in the UK. Venezuela Forms must be filed electronically.

Vietnam Effective from July 1, 2013, the Amended Tax Administration Law, requires that corporate taxpayers must file their returns online if they locate in an area with sufficient IT infrastructure.


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WORLDWIDE COMPLIANCE

• Various agencies will continue to enforce improvement in compliance and reporting

• Tax and revenue authorities will have access to more data

• Tax return is not the only document tax agencies will be asking for

• Various jurisdictions will look for ways to exchange information


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THE BDO GLOBAL NETWORK

With a network spanning more than 100 countries worldwide, BDO is the 5th largest global network of public accounting firms. Our seamless global approach allows us to serve clients through a central point of contact, granting access to relevant experience across borders – where and when our clients need us.

BDO’s strength is derived from our structure as a cohesive global network and dedication to internal integration. In each country, BDO Member Firms are composed of people who are knowledgeable about national laws and business customs, and familiar with local and international business methods. As our clients expand globally, our access to our international network can help them do business with a depth of experience in international matters, significant resources and international client service capabilities.

Total combined fee income as of and for the year ended 9-30-13 * including BDO’s exclusive alliance firms


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QUESTIONS AND ANSWERS

For additional questions, please contact: Polina Vesna, MST Sr. Tax Manager, International Tax Services (212) 515-5454 [email protected] BDO USA, LLP 100 Park Avenue New York, NY 10017



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DISCLOSURES

This presentation contains general information only and BDO USA, LLP is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. BDO USA, LLP shall not be responsible for any loss sustained by any person who relies on this presentation.


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CONCLUSION

Thank you for your participation! Certificate availability: If you participated the entire time and responded to at least 75% of the participation pop-ups, click the “Participation” button below to access the print certificate button.

Group participation reminder ‒ to receive credit: Sign-in sheets must list a Proctor name and CPA license number.

BDO USA professionals ‒ submit your sign-in sheets using a Training & Development Request in BDO Service Now found at: BDOWorld > Applications & Resources > BDO Service Now > Click “Service Catalog” in the left menu, then under Training & Development, “Make a Request”.

Clients and contacts ‒ email sign-in sheets to [email protected] within 24 hours of the webcast.

Alliance members ‒ should proctor their own group participants. This process is detailed in the LearnLive Participant Guide on Alliance Portal > Resource Center. Call LearnLive Support for questions at 1-888-228-4088.

Unfortunately, we cannot currently support group CPE for International Firms. Those wanting CPE must have registered and participated from their own computer.

Please exit the course by clicking on the red “X” in the upper right corner.



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BIOGRAPHIES


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POLINA VESNA, MST

POLINA VESNA, MST Senior Manager, International Tax Services BDO USA, LLP [email protected] Direct: (212) 515-5454 100 Park Avenue New York, NY 10017 www.bdo.com

EXPERIENCE SUMMARY Polina has experience in both private and public sectors. During her eight years of working in public accounting, Polina’s experience has included international tax consulting, foreign tax credit planning, U.S. withholding taxes analysis, preparation and review of tax provisions including ASC 740 for domestic and foreign companies, and representation of taxpayers during federal tax examinations. Furthermore, Polina has considerable experience in domestic corporate, partnership and individual tax compliance. EDUCATION Master of Science, Taxation, Baruch College - Zicklin School of Business, CUNY Bachelor of Business Administration, Accounting, Baruch College, CUNY




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BDO is the brand name for BDO USA, LLP, a U.S. professional services firm providing assurance, tax, financial advisory and consulting services to a wide range of publicly traded and privately held companies. For more than 100 years, BDO has provided quality service through the active involvement of experienced and committed professionals. The firm serves clients through 49 offices and more than 400 independent alliance firm locations nationwide. As an independent Member Firm of BDO International Limited, BDO serves multinational clients through a global network of 1,264 offices in 144 countries. BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. www.bdo.com Material discussed in this publication is meant to provide general information and should not be acted on without professional advice tailored to your individual needs. © 2014 BDO USA, LLP. All rights reserved. www.bdo.com

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@BDO USA Tax...BDO KNOWLEDGE Webinar Series ‒ GLOBAL TAX OUTSOURCING: Centrally Managing Global Risks, Resources and Responsibilities Page 1 @BDO_USA_Tax BDO USA, LLP, a Delaware