A global survey by Grant Thornton has discovered that 74% of businesses are willing to pay more tax in return for greater clarity from tax authorities.

The International Business Report, which listened to the views of leaders from 2,580 businesses in 35 economies, also showed that while few expect a global agreement on taxation any time soon, the majority (71%) would like to see their governments take unilateral action to help achieve this aim.

The survey comes as the OECD prepares to deliver the final phase of its Base Erosion and Profit Shifting (BEPS) action plan, an attempt to address perceived flaws in international tax rules which have seen some business subjected to double taxation while the profit of others goes untaxed.

Michael Crowe, a director at Grant Thornton in the Isle of Man, said the findings give an insight into attitudes towards the planned tightening of global taxation regulations.

He added there is clearly a desire for simplified cross border tax transactions, even at a greater cost to business, which may be contrary to the expectations of the Isle of Man Government and many Island firms.

Mr Crowe said: ‘The levels of taxation paid by businesses has become a very public and emotive issue, but setting emotion to one side, businesses have a responsibility to their investors and shareholders to keep costs down, within the existing regulatory parameters.

‘Despite this, the IBR survey clearly shows that the vast majority would actually support paying more in tax in exchange for clearer guidance from tax authorities on what is acceptable tax planning. The ball is very firmly in the court of tax authorities to provide the clear lines that businesses are requesting. The results provide more evidence that clarity is needed in the complex world of cross border tax transactions, and will perhaps change perceptions in the Isle of Man towards what global business feels about the tightening of regulations.’

When asked if they would welcome more global co-operation and guidance from tax authorities on what is acceptable and unacceptable tax planning, even if this provided less opportunity to reduce tax liabilities across borders, 75% of business leaders said 'Yes', up from 53% one year earlier. In the G7, 75% want greater clarity, up from 43% one year earlier.

Business leaders are not hopeful that a global agreement will be enacted to provide clearer tax rules for all. Just 23% of the survey respondents thought that the OECD's plans on global tax improvement under the BEPS project would be successfully implemented. This is slightly down from 24% one year earlier.

However, they are far more supportive of unilateral, individual country, action in lieu of a global agreement: 71% said they would support their own government taking unilateral action to combat the loss of tax revenue in their jurisdiction. Support for local action is strongest in India (95%), the US (82%), UK (79%), China (67%) and Ireland (64%).

Mr Crowe continued: ‘Businesses may be pessimistic on the chances of a global agreement, but the work being undertaken by the OECD on tax planning should go some way to allaying business concerns by moving this debate away from talk to action. The OECD is set to finalise its recommendations this year.

‘International tax standards clearly need to be stripped down and rebuilt for the world we live in today. The existing legislation is creaking at the seams in an increasingly interconnected, digital world in which the definition of a “border” is looking archaic. The research is showing that businesses are asking for more help to enable them to navigate the new challenges of a digital economy.’

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