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Sanjay Mehta Quoted in Financial Times on Rising Tax Dispute Costs for FTSE 100 Companies

Firm News | September 18, 2017

Sanjay Mehta, a Katten Muchin Rosenman UK LLP Tax partner, was quoted in the Financial Times regarding the £2.7 billion set aside by FTSE 100 companies in the last year to cover the cost of tax disputes with UK and international tax authorities.

Sanjay noted that the Organisation for Economic Co-operation and Development initiatives in relation to "base erosion and profit shifting"—strategies that include the exploitation of gaps in rules to artificially shift profits to low or no-tax locations—is an important factor behind the increase in money set aside for tax disputes.

"Compliance costs on the tax and accounting side have significantly increased," he said. "The appetite for most types of traditional tax planning is now very limited. [There is] increased wariness [among companies] about public scrutiny and the reputational risk [of pursuing aggressive tax strategies]." (Read "Tax Dispute Costs Soar at UK’s Biggest Companies," September 28, 2017)