It is always the case that businesses must keep up with changes to tax rules, but never have tax rules had to pay equally close attention to changes in business. The evolution of technology and the internet age have driven seismic shifts in the ways companies operate, and presented new challenges for tax regimes.

The long-awaited Organisation for Economic Co-operation and Development (OECD)/G20 Global Anti-Base Erosion Model Rules, intended to address perceived challenges to longstanding international taxation principles by the increasing digitalisation of the economy, are coming closer to becoming a reality with the agreement by 137 OECD/G20 countries and jurisdictions to join the official statement of the Two-Pillar Solution. But we’re still not there yet. Similarly, despite the Non Fungible Token (NFT) market being worth US$21 billion, the US Internal Revenue Service (IRS) still hasn’t explicitly stated how NFTs will be taxed.

Without clear rules and guidance, businesses need to be highly vigilant. The continuing trend of working outside the office means international companies must ensure their remote workforce doesn’t inadvertently trigger tax liabilities by creating a permanent establishment or permanent representative; and trustees must undertake regular reviews to ensure changes within the trust don’t generate new taxable events. In addition, companies need to be aware of how expected changes to tax laws may be more aggressive than anticipated, such as the withdrawal by the US IRS of certain foreign tax credits.

Please contact the authors directly if you have any comments on our articles, or would like to discuss any of the issues raised.

This is a phenomenally interesting time to be a Private Equity investor. The dramatic shifts in focus caused by the global COVID-19 pandemic, the increasing challenge of climate change, and the growing emphasis on corporate governance, have converged to create a perfect storm of opportunity and demand for investment.

Nowhere is this more apparent than in the healthcare and life sciences sectors, which are seeing unprecedented expansion as a result of the existing, pre-pandemic move towards a new world of healthcare delivery, and the reinforcement of healthcare services as a major priority across the globe. Our HPE New York 2021 panel of experts provide insight on how the most successful funds are maximising the current opportunities.

Running a close second, the shift towards renewable energy has opened up avenues for investment that might not be immediately obvious: the upstream oil and gas industry. Demand for oil continues to surge, but the current importance of environmental, social, and governance considerations, has rendered hydrocarbons unattractive for public investment. PE and private wealth look poised to step into the void.

Of course, these opportunities also create challenges and potential pitfalls for over-enthusiastic but unprepared investors who may fear they are missing out on the next big thing. A clear-eyed understanding of risk, and a strong commitment to mitigating it, have never been more valuable.

Please contact our authors directly if you have any comments on our articles, or would like to discuss any of the issues raised.