Tim Sarson explains why tax professionals should probably ignore much of the noise around ‘Brexit’, at least for the time being.
On 23 June 2016, UK voters will decide whether to remain in, or leave, the EU. With high profile supporters on both sides of the debate and polls on the brink of parity, it is looking as though it could be a close contest. Against this backdrop, investors are asking CEOs to explain the potential impact of a ‘leave’ vote on their business. And while a potential Brexit is not a tax event, some of its most obvious and quantifiable effects could be tax ones.
Would a vote to leave be the game-changer that BEPS has been? In a recent article for International Tax Review, Tim Sarson, a partner with KPMG in the UK, examines the potential tax impact of a Brexit, highlighting that any tax impact is likely to be felt in two waves. A handful of very specific tax changes will become apparent on June 24, even if they don’t take effect for two years. This will be followed by a longer period – at least those two years, probably longer, where the shape of life outside the union will slowly emerge from the fog. It will only be after this, in hindsight, that the real impact will become clear.
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