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Tax riskon the rise
£32,000,000,000The amount of tax that went uncollected in the UK in 2010–11, according toHM Revenue & Customs (HMRC), slightly up from £31b the year before
Source: HSBC Expat Explorer 2011, Atlas Corporate Relocation Survey 2011, Ernst & Young Global Mobility EffectivenessSurvey 2011, EIU ; Up or out: Next moves for the modern expatriate 2010; graphic: Käthi Dübi
The percentage of China-basedcompanies that have seena rise in the numberor rigorousness of tax auditsin the last three years
92%
The percentage of India-basedcompanies that haveexperienced stricter disclosureand transparency requirementsin the last two years
85%
New sources of tax risk
Growing disclosureand transparency requirements
Tax administrations aroundthe world become morerigorous
! Increased pace of legislativechange
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Canada C$14,780m 1.16%Indonesia IDR16,134,468m 1.0%Korea 2,900,129m 0.81%US US$64,623m 0.52%Mexico MEX$25,677m 0.48%New Zealand NZ$163m 0.33%Czech Republic K�2,538m 0.20%
Country
*2009
Tax claimed in casesnot finalized at year-end*
Percentage ofpublic debt
Tax audits and public debtEven if all the tax associated with open cases were to be collected bythe tax authorities, this only represents a small portion of public debt
800+The number of bilateral tax informationexchange agreements that have beensigned since 2009 as part of the Organisation for Economic Co–operationand Development (OECD)’s Global Forum on Transparency and Exchange of Information for Tax Purposes
207The number of General Anti–Abuse Rule (GAAR) cases concluded in 2011, as reported by the Chinese taxauthority, which resulted in aroundUS$24b in taxes being collected
US$385bThe amount in US$ expected to berecovered by Foreign Account TaxCompliance Act (FATCA) over 10 years; the cost of FATCA compliance for some large firms is estimated at between US$70m and US$100m
£40mThe amount one UK corporationwas forced to pay in back taxesand penalties for failing to accuratelyreport home-paid income
Expansion in emerging markets ?A new breed of tax activismhas emerged
200%The maximum penalty, as a percentageof tax underpaid, that Italy hasthe power to levy on companiesfalling foul of anti-avoidance legislation
US$350bThe latest estimate by theInternal Revenue Service ofthe amount of tax that isunderpaid in the United States
The percentage of business leaders who think that operating in emerging markets significantly increases their levels of tax and tax controversy risk
73%
Companies experiencingan increase in the numberor rigorousness of taxaudits in the last two years
All companies57
57
69
60
52
48
75Tax directors of US$5b+ revenues
US$3b+ revenues
Americas
BRICS
EMEIA
Asia
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