The Global Accounting Alliance (GAA) is a grouping of peak member bodies around the world. It has a number of technical work groups and I co-chair the tax work group. This group meets six times a year, predominately online, with one in-person meeting hosted by each of the member bodies on a rotational basis.

CA ANZ is unique in that it is a Trans-Tasman body representing two tax jurisdictions.

Tax work group objectives

The purpose of the tax work group is to collaborate and share knowledge on key tax policy and administration matters impacting each jurisdiction, and to provide a joined-up focus on international tax matters. It shouldn’t surprise anyone that the revenue authorities collaborate similarly.

Tariffs and the current Organisation for Economic Co-operation and Development (OECD) BEPS pillar 2 impasse have been ongoing focus areas. The group is well placed, with members able to provide insights from the major players, including the US, the UK, the European Union, Canada and Japan.

Country updates are provided by each group member and are kept current throughout the year. They extend beyond taxation and include both fiscal insights and key economic indicators. Many countries are suffering a post-COVID-19 economic hangover and are dealing with similar economic effects to New Zealand, including burgeoning public debt. There are also similarities in terms of ageing populations, healthcare costs, infrastructure deficits, reduced growth and structural government deficits.

Common discussion points include the sustainability of the tax base (what new taxes we are seeing being deployed), substantive increases in tax debt and the options deployed by revenue authorities to rein this in.

Building relationships

The annual, in-person meeting over several days provides an opportunity to interact with government, relevant institutions and senior officials, and senior practitioners in the host country. These discussions enhance group members’ understanding of the relevant political and tax systems. They provide a genuine platform for two-way knowledge sharing and the development of important long-term connections.

This can best be highlighted by our recent in-person meeting held in Germany, expertly hosted by our group member heading the tax role at IDW (Institut der Wirtschaftsprüfer, the German member body for public auditors). During our visit we had meetings with a wide range of people, including:

• An international tax partner at Deloitte, to provide a German and European perspective on the OECD BEPS impasse and the impact of tariffs
• A senior judge at the German Federal Fiscal Court (a specialist appellate tax court), to discuss the workings of the appeal court operating in a civil law country
• A member of the German federal parliament
• A representative from the Institute for Digitalisation in Tax Law (IDSt) to discuss the digital transformation of taxes
• The president of Accountancy Europe
• Plus, a hosted private tour of the German Bundestag (the lower house of the German federal parliament, the only constitutional body which is directly elected by the voters).

Common challenges

Tax administration and the digitalisation of functions provide a rich source of collaboration across the group. Each jurisdiction is facing similar issues but may be at a different stage or have sequenced tax component parts differently in terms of digital transformation. Relevant insights and shared experiences as to what worked well, what problems were encountered and how issues were addressed, are invaluable.

How revenue authorities deal with AI and its interactions with their systems, identify theft and ensure confidential taxpayer information remains secure, are all currently front of mind.

The above insights and access to specific in-country expertise on demand enhance our tax advocacy and provide an additional dimension in our discussions with government and IR. Joint output and research derived from specialist activities within the group also assist our advocacy efforts.