Question

What are possible ways for multinational corporations to reduce the odds of negative settlements (involving higher taxes and penalties) with the tax authorities?

Answer 1

Multinational corporations face complex issues pleasing tax authorities from multiple countries. The best ways to stay ahead of potential negative settlements with tax authorities involve education and thorough and precise accounting. Hiring empoyees for accounting that are familiar with tax laws in the countries you are opperating will help prevent fines and penelties later. Employees with a proven track record and demonstrable skills can greatly lessen the odds of not complying with tax laws. Making sure that systems are in place so all employees are educated and adhering to best practices is well worth the time and effort.