A majority of banking executives believe they will have a difficult time addressing the tax implications of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Basel III accords, according to a new survey.
The survey, by KPMG, found that 64 percent said it would be difficult for their business to address the tax implications of the Dodd-Frank Act and Basel III; 31 percent said they would have a significant impact on their business. In addition, 48 percent said they were still trying to understand the tax implications, while 27 percent said they were in the process of incorporating scenarios into tax planning.
Forty-one percent of the banking executives said the capital and liquidity rules established by the Dodd-Frank Act and Basel III would have the greatest impact on their business from a tax standpoint, and 49 percent said their bank was currently considering restructuring activities in order to comply with the Dodd-Frank Act or Basel III.
“Various tax issues related to the Dodd-Frank Act and Basel III have broad and potentially significant implications,” said Tony Anzevino, national leader of KPMG LLP’s Banking and Finance practice. “Senior management should be engaged with their finance and tax teams to understand how these tax issues may impact the business from a strategic, risk and earnings perspective. Ideally, banks at this stage should be well along in determining a way forward.”
KPMG’s Washington National Tax practice and its Americas’ Financial Services Regulatory Center of Excellence have jointly released a white paper today entitled “
