Ernst & Young says fiscal pressure on rise internationally. Fiscal pressure is on the rise throughout the world with the sovereign debt crisis forcing governments to adopt more proactive and aggressive fiscal policies. This is the conclusion of Ernst & Young Lawyers, in the 2012 issue of their annual comparative study of fiscal measures in OECD countries. The 2012 edition examines 2011macro-economic and fiscal data in 39 OECD countries, as well as the BRICS and South Africa. The study outlines three main areas of global fiscal trends: 1) a consolidated or expanded tax base; 2) concentration of tax policies to enhance the fight against tax evasion; 3) increase in the number of agreements to ensure the exchange of information and administrative assistance. According to the study, nine OECD countries have introduced tougher tax base in an attempt to reduce public deficits. In Europe, these include France, Italy, Germany, Ireland, Estonia, Hungary, Luxembourg and Greece. Mexico has also taken similar measures. There is a tendency to increase indirect taxation on both continents (US, Brazil and Chile, for example), such as VAT and taxes on high incomes. In Asia, taxes on real estate have increased. Although the tax base has been consolidated or expanded overall, several countries have reduced corporate tax and have increased tax incentives to attract foreign investment. This has occurred in Asia and across the Atlantic. Ernst & Young also notes that a concentration in fiscal policies tends to increase measures to tackle tax evasion. Nonetheless, on 1 January 2012, 15 countries, including Russia, Ireland, Switzerland, Chile and Slovenia had still not put into place “Control Foreign Corporation” type rules. Finally, the treaties and agreements aimed at ensuring information exchange and the use of this information actually increased. 498 information exchange agreements were signed but only half of these agreements have been put into force. More specifically: . EMEA Zone (Europe-Middle East-Africa): governments are continuing to reduce corporate taxation, with the exception of France. At the same time, there has been an increase in indirect taxation, such as VAT. The rate observed in the 39 countries studied is 19.51%. The Czech Republic was the only country to have reduced VAT between 2010 and 2012. The United Kingdom, Italy and Greece, on the other hand, have increased their VAT rates by 2.5%, 1% and 2% respectively. France has maintained its VAT rates at 19.6%. France, Italy, Portugal, the United Kingdom, Spain and Iceland have increased taxes on high earners. . Americas and Asia-Pacific Zones: South Korea, New Zealand and Australia have decreased their corporation taxes, below the average rate of 35.64% in the zone. China, India and Japan have maintained stable taxes in this context. China, Japan, South Korea and Australia introduced a tax on real estate in 2011. China, India and Japan have maintained stable tax rates. In Australia, this tax has targeted mining companies. Some countries in the Americas zone have developed tax breaks for certain kinds of investment. For example, the US has improved tax credits for research and trials, which now become permanent. Brazil has introduced a series of tax breaks for petrochemicals and oil refining sectors by suspending a certain number of taxes. Canada has speeded up payments on clean energy and energy saving production equipment. China and Australia have introduced tax incentives for promoting targeted investments. China has developed “Energy Performance Contracting projects” (EPC) and “Energy Conservation Service Enterprises” (ECSEs) to this end. On 1 July 2011, a mechanism was introduced in Australia to facilitate the allocation of tax credits to companies that improve their buildings energy saving performances. (IL/transl.fl)