13. A practical approach to Brexit november 2017

Transcription

1 13. A practical approach to Brexit

2 #kunskapsdagar Välkommen! Agenda Overview and update on negotiations Where are we now? Human Resources Issues Indirect Tax Implications VAT and Customs Duty Direct Tax Issues Legal, financial and regulatory issues Building the Optimal Brexit Plan Claire Cowen Senior Manager Corporate Tax Aidan Coleman Senior Manager Indirect Tax 2

3 #kunskapsdagar Overview and update on negotiations Where are we now? 3

4 #kunskapsdagar Objectives of the session To give a brief update on the current status of negotiations and most likely outcomes To provide practical examples of issues we are seeing businesses face in respect of: - Direct & Indirect taxes and duties - Legal issues - Human resources - Merger and acquisition activity To provide a framework to help you plan for the future, manage risk, and respond quickly to the changing environment 4

5 #kunskapsdagar Brexit marathon or sprint? Deadline for conclusion of negotiations 19 th June 2017 Start of EU-UK Talks 19 th 20 th October 2017 EU Meeting Head of State Q Conclusion of divorce settlement March 2018 EU meeting heads of state Autumn 2018 Conclusion of negotiations and beginning of ratification process June Sept Oct Nov Dec Jan Mar July Oct Nov Mar June 2017 UK General Election 24 Sept 2017 German Elections November 2017 UK budget January 2018 Estonia takes EU presidency July 2018 Bulgaria takes EU presidency January 2019 Austria takes EU presidency May 2019 EU Elections Key negotiations Ratification process 5

6 #kunskapsdagar 12 objectives of the UK s plan for Brexit Stated objective Core issue Change Status quo Certainty over process of leaving EU Orderly process / transition X Control of UK own laws Determining UK laws /ECJ X Other Strengthen Union of United Kingdom Determining UK laws / ECJ X Maintain Common Travel Area with Ireland Borders X Control of immigration from the EU Freedom of movement X EU nationals in Britain and British nationals in EU Orderly process / transition Protect workers rights Determining UK laws / ECJ X Free trade with European markets by FTA Single Market X New trade agreements with other countries Customs Union Best place for science and innovation Single Market X Co-operation in fight against crime and terrorism Good neighbours A smooth orderly Brexit Orderly process / transition X X X X 6

7 #kunskapsdagar The 4 priorities of the EU Rights of EU citizens and the UK s obligations towards them Size of exit bill Transfer of EU agencies out of the UK Territorial issues including N Ireland, Gibraltar and Cyprus Define limits to EU law based claims Many more 7

8 #kunskapsdagar Deal or no deal? Article 50 negotiations Transitions Final deal Exit with transitions UK-EU agree interim deal while completing FTA talks Norway/Turkey? Customs Union access? Comprehensive FTA Outside of Customs Union and Single Market Frictionless and tariff-free trade Exit agreement without transition Exit issues resolved but no transitions WTO Rules Comprehensive FTA Outside of Customs Union and Single Market Frictionless and tariff-free trade No Deal Fail to reach agreement on exit or run out of time to complete WTO Rules WTO Access Beyond 8

9 #kunskapsdagar What does this mean? New everything! Laws, taxes, tariffs, service constraints, immigration limits, export opportunities, UK economic conditions, foreign exchange rates, relative costs of doing business, labour markets, etc. Uncertainty continuing for some time Flexibility essential Effective response identifies: What MUST be done now What can wait but needs PROACTIVITY What can wait and no need to address yet Challenges and Opportunities!! 9

10 #kunskapsdagar Human Resource Issues 10

11 #kunskapsdagar UK proposal for EU nationals 3 million EU nationals currently live in the UK 5 years or more residence (at specified date or within 2 year grace period) Settled status on application. Fast track for EU Permanent Residence documents Less than 5 years residence (at specified date or within 2 year grace period) Temporary status on application Not resident at the specified date regardless of prior length of stay in UK Need to apply under relevant UK law at the time Employers are currently supporting employees with residence applications to provide some comfort on status during the proposed grace period 11

12 #kunskapsdagar Indirect Tax Implications VAT and Customs Duty 12

13 #kunskapsdagar Supply chain study Pre Brexit Clothing despatched to the EU Warehouse Clothing exported to Rest of World Clothing acquired from Italy Clothing imported from Bangladesh 13

14 #kunskapsdagar Supply chain study Pre Brexit Clothing despatched to the EU Warehouse Clothing exported to Rest of World Clothing acquired from Italy Clothing imported from Bangladesh 14

15 #kunskapsdagar Supply chain study Post Brexit potential issues UK EU Border Clothing shipped to the EU Warehouse Clothing exported to Rest of World Clothing shipped from Italy Clothing imported from Bangladesh 15

16 #kunskapsdagar Direct Tax Issues 16

17 #kunskapsdagar 4 Key EU Directives what happens post-brexit? 1. Parent-Subsidiary Directive 2. Mergers Directive 3. Interests & Royalties Directive 4. Arbitration Convention Will the current business structure cost more after Brexit? Is it possible to restructure to mitigate costs and risks? 17

18 #kunskapsdagar Legal, financial and regulatory issues 18

19 #kunskapsdagar Legal, financial and regulatory issues Repeal Bill Status of CJEU Status of EU agencies Contracts supplier, customer, operational Unitary patents EU trademarks General Data Protection Regulation Financial reporting disclosure requirements Business acquisitions and disposals 19

20 #kunskapsdagar Building the Optimal Brexit Plan 20

21 #kunskapsdagar What are your choices and how do you prioritise them? Choices - Wait and see - Protect current position - Proactive response Consider risk appetite, financial position and capabilities Operational choices (relocation of HQ; cost reduction measures; mobility of people) Financial choices (refinancing and investment plans) Structural choices (legal, tax) Cost/benefit Cost to execute versus business benefit Prioritise and allocate resources accordingly Identify quick wins you can easily execute Prioritise Rank choices in order of: - Must do - Might do Identify areas for immediate action Which actions you can implement yourself? Do you need to influence others? e.g. UK government 21

22 #kunskapsdagar UK Contacts Claire Cowen Aidan Coleman Tel: +44 (0) Mob: +44 (0) Tel: +44 (0) Mob: +44 (0) PricewaterhouseCoopers i Sverige AB. All rights reserved. In this document, refers to PricewaterhouseCoopers i Sverige AB which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.