IESBA consults on new ethical principles for professional tax advisors
The International Ethics Standards Board for Accountants (IESBA) released the Exposure Draft on Proposed Revisions to the Code Addressing Tax Planning and Related Services for public comments on 17 February.
The proposed revisions respond to public interest concerns about tax avoidance, and the role played by consultants, including professional tax advisers, in light of revelations in recent years such as the Paradise and Pandora Papers. The proposals strengthen the ethical expectations for professional accountants in business and public practice when performing tax planning activities for employing organisations or providing tax planning services to clients, respectively.
The deadline for providing comments is 18 May.
G20 finance ministers re-iterate commitment to 2-Pillar solution
G20 finance ministers underlined the commitment in the final Communique of their 24-25 February meeting. Specifically, the Communique states: “We will continue our cooperation for a globally fair, sustainable and modern international tax system fit for purpose for the 21st century. We remain committed to the swift implementation of the OECD/G20 two-pillar international tax package. We urge the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (“Inclusive Framework”) to finalise Pillar One, including the remaining issues so that the Multilateral Convention can be signed in the first half of 2023.”
ESMA sends letters to EFRAG and IASB on Pillar 2 accounting amendments
The European Securities and Markets Authority (ESMA) has sent letters to the International Accounting Standards Board (IASB) and the European Financial Reporting Advisory Group (EFRAG) regarding IASB’s Exposure Draft International Tax Reform – Pillar Two Model Rules. In its letter, ESMA provides high–level comments to the organisations to ensure that the IASB’s proposed changes fit the purpose of the EU. ESMA notes that convergence with the US GAAP is paramount for this standard.
See the letter to IASB here and to EFRAG here.
Annual Report 2022: EPPO puts spotlight on revenue fraud, with VAT fraud on top
The Annual Report for the activities of the European Public Prosecutor’s Office (EPPO) in 2022 focuses on EU fraud affecting public revenue, particularly cross-border VAT fraud. By the end of 2022, the EPPO had 1117 active investigations with estimated damages of €14.1 billion, nearly half of which (47%) resulted from VAT fraud.
In 2022, the EPPO received and processed 3318 crime reports and opened 865 investigations. Judges granted the freezing of €359.1 million in EPPO investigations (compared to €147.3 million in 2021), representing more than seven times the organisation’s 2022 budget.