Expect increased anti-avoidance measures as revenues become critical for Covid indebted nations

After the last global crisis, the Great Recession, the OECD made it clear that, whilst not part of the cause, tax compliance would most certainly be part of the solution to the challenges raised by the financial crisis. The mood music coming out of the OECD and EU is similar today as it was then.

Tax professionals should expect provisions that drive revenue gathering aimed at reducing opportunities for planning and tax mitigation to be at the forefront of the minds of jurisdictions which have borrowed heavily to support their economy. Tax rates are likely to rise to service vastly increased debt, and anti-avoidance measures will continue to be developed on a multi-lateral basis with low tax jurisdictions cooperating as the forums and frameworks of the OECD and the like are expanded to include new members and the effect of non-cooperation on a country's ability to trade are increased by entities such as the EU.