Simultaneous audits mean two separate exams, conducted by different governments, in which those governments share with each other some of the taxpayer’s information.Â Even though you may not have heard of them, they have existed since the 1970s, but are becoming more common today as government tax agencies race to match the level of global coordination practiced by multinational companies and their tax advisers.
1. What does the article point to as â€œthe biggest downside to an unplanned simultaneous audit?â€
2. What is the most common reason(s) for countries to exchange corporate tax information?
3. Explain the statement â€œfirms would do well to understand the difference between the collaborative modes â€” enforcement and service â€” in which tax authorities operate.â€ Briefly explain the difference between the two and why it benefits firms.
Leone, M. (2010). Double Trouble? Maybe Not. CFO Magazine, May 1 (Retrievable online at http://www.cfo.com/article.cfm/14493124″>http://www.cfo.com/article.cfm/14493124)