Global Trends in VAT/GST and Direct Taxes

S. 432I. Introduction

In the real estate industry of today’s globalized economy and the presence of multinationals, one can see trends similar to any other business industry. International developments have created a need for international tax strategies where ‘the tax function’s new role is based on contributing value to the company’s overall strategy as an integral part of the business’. Instead of traditionally recognized tax compliance matters, the demands for a new tax function – in the form of a profit-generating unit using tax-driven business strategies to help the group to develop business – has never been more self-evident than today. On the other side, however, there is a clear desire for increased transparency from diverse stakeholders, governments and tax authorities. ‘Looking forward, tax is an increasing area of focus. It is very high on the boardroom agenda, and governments and tax authorities are keen to see it there.’

The potential result of aligning the tax strategy to the overall business strategy could be exploited useful business model for the real estate industry where commercial development takes the form of an extensive segregation of functions. In practice, this me...