Tax controversies to watch in 2023

Multinational corporations such as Amazon and Medtronic are embroiled in legal fights over their tax and transfer pricing (TP) arrangements.

Although the courts rendered significant verdicts in many historic cases last year, many long-running tax disputes remain unresolved.

Amazon is attempting to defend its 2021 court victory against an appeal by the European Commission. Facebook is awaiting a court ruling in its battle with the Internal Revenue Service (IRS).

Meanwhile, pharmaceutical business Amgen and medical technology company Medtronic are battling the IRS in court. These cases have the potential to set precedents for entire industries, rather than just individual enterprises.

Tax directors anticipate an increase in disputes as governments compete for tax income. In 2023, businesses may expect greater audits, scrutiny, and potentially more disagreements. For taxpayers, the only certainty is uncertainty, as it was last year.

By fLEXI tEAM