Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: VAT Audit :: form 3cd :: due date for vat payment :: cpt :: ACCOUNTING STANDARD :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
News Headlines »
 Directions under section 119 of the Income-tax Act, 1961
 Securities excluded from GST ambit in revised Bill
 GST dilemma: Hope fades for new tax regime
 5nance.com launches tax investment platform
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful

Pharma faces rising taxes PwC report
December, 02nd 2009

Among the plethora of challenges the pharmaceutical industry is facing, tax is going to play an increasing role in the way companies make major strategic decisions.

This is the essence of a new report from PricewaterhouseCoopers, Pharma 2020: Taxing times ahead - Which path will you take?. It notes that the global financial crisis, government pressure and changing market dynamics are likely to drive up the effective tax rate for the pharma and life sciences industry.

In a poll of 35 senior tax executives within the sector, six in ten agree that an increase in the effective tax rate is inevitable. 63% feel that the cost on their organisations might eventually be passed onto consumers unless they find ways to operate more efficiently and transform their approach to R&D and sales and marketing.

62% of tax executives polled said they are looking to maximise tax credits and other incentives for R&D and all of them believe that the demand for tax specialists will grow substantially. More than half of the respondents said they are now being consulted early on by senior management in strategic business decisions, and thus have influence over the direction of the company.

The report notes that the global recession has made tax authorities around the world hungry for new revenue sources to overcome growing budget deficits and potential new costs associated with healthcare reform initiatives. Governments are therefore focused on the use of tax havens that allow multinationals to move profits offshore and will continue to scrutinise transfer pricing practices to limit abuse of intra-company transfers of expenses or profits.

PwC adds that economic substance of offshore operations will become increasingly more important. The consultant says that identification of uncooperative nations may become more common, and corporations that continue to use tax havens could face financial penalties and reputational damage.

The study goes on to note that there has been a resurgence in mergers and acquisitions, in-licensing and joint ventures, and each of these strategies comes with significant tax implications. Also, international competition is intensifying to attract new investment, particularly from emerging markets, and while this trend may further drive profit growth to the East, companies will need to balance increased income with higher tax rates and potential price controls.

Michael Swanick, global pharmaceutical and life sciences tax leader at PwC, said that tax planning will be a critical consideration, not an afterthought, of long-term business plans to grow, buy, merge or sell and it will be one of the most important considerations in deciding where to locate intellectual property, manufacturing and service delivery.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions