Washington (March 21, 2003) -- An initiative being used by many states to capture more revenue from sales and use transactions topped a list of issues relating to "jurisdiction to tax" facing U.S. companies, according to a survey of 130 tax executives by KPMG.
Some 31 percent of respondents chose the Streamlined Sales Tax Project as the top issue relating to jurisdiction to tax (the right a government has to levy a tax), while 21 percent cited the prospect of a move by the United States toward a national consumption tax, KPMG reported. More than half of respondents (59 percent) expect tax jurisdiction issues to influence their company's ability to compete domestically over the next five years, KMPG said.
In addition, 43 percent of those surveyed said tax jurisdiction issues have already affected their company's international competitiveness and 65 percent said it is "very likely" or "somewhat likely" that the issues will affect their international competitiveness over the next five years.
To respond to jurisdiction-to-tax issues as they arise, 23 percent of respondents said they would utilize more technology and 15 percent said they would add more training for their staffs. Another 23 percent were uncertain how they would respond.
-- Electronic Accountant Newswire Staff
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