Amid the uncertainty of the past three or so months, governments and businesses innovated responses and put them into action at unprecedented speed. My KPMG colleagues and I have charted these developments and shared our thoughts and predictions through weekly webcasts, articles and podcasts, reporting what we’re hearing from governments and business executives, as well as what we see ahead.
It’s widely agreed that even when we emerge from COVID-19, life will likely be quite different. Businesses, governments and citizens need to prepare for a new reality ahead.
Many view the lockdown period as a long pause, but in many ways, I see it more as a speeding up as the situation actually put many trends that were already underway on fast forward, especially in the area of tax.
As the pandemic took hold and lockdowns were imposed, many jurisdictions relied on their tax systems to distribute emergency funds designed to help citizens, businesses and economies cope. These measures may leave many governments with tremendous budgetary deficits, so tax systems will again be important for restoring public sector finances. Here are my predictions for the areas to watch.