Tax recruitment is a tough place to work at the moment. We are in a recession. Credit has been crunched. Taxes have been cut. Corporate belts have been tightened. People have been made redundant. Costs have been controlled. Recruitment budgets have been slashed.
However, Maven Partners is an optimistic and positive business. We believe that the worst is over and that the economy is on the road to recovery. The Financial Times recently reported that the UK Economy will face a "shorter and shallower" recession than for much of the rest of Europe. Two areas where we are set to witness a rise in demand for tax professionals are indirect taxes and transfer pricing. This is positive news for all those operating in the field of tax recruitment.
Indirect Tax Recruitment
KPMG suggests in its Global Indirect Tax Brief that "Many jurisdictions are using VAT, customs duty and other indirect taxes as fiscal stimulus tools to target specific industries or domestic economic objectives." A number of tax jurisdictions, including the UK, have been focusing on the issue of cross border services looking at the extent to which these services may be outside the scope of local VAT with a view to imposing charges.
KPMG believes that compliance management and the use of technology tools will important issues for corporates to address.
At Maven Partners we believe that the demand for global indirect tax professionals will rise in the coming months.
Transfer Pricing Recruitment
This month we saw Dixon Stores Group International pay HMRC £52.7m to settle a long running dispute over transfer pricing.
Last month the Obama Administration detailed plans to raise $210bn over 10 years by curbing "loopholes" in the US tax regime allowing companies investing overseas to gain "an unfair advantage" over those investing in the US. This refers to income shifting schemes and alleged abuses of the transfer pricing regime whereby the company can defer taxes on profits earned overseas indefinitely.
Experienced transfer pricing professionals can expect to witness a rising global demand for their talents.
Rob Stephenson is a Managing Partner at Maven Partners, a specialist tax recruitment business.
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