Finding The Holy Grail of International Tax Structures
A discussion today at the Global Conference in Madrid for Taxand, the world’s largest independent global organisation of specialist tax advisors to multinational businesses identified a number of issues for multinationals to consider when building global tax structures.
Optimising the supply chain is often overlooked in tax planning but can be key to maximising profitability. It’s important, however that operations come first and any strategies implemented must marry with the strategic ambitions of the business at large.
The issue of cash repatriation has quickly risen up the tax agenda of late, with a number of multinationals considering the most effective utilisation of cash piles, in the absence of significant investment. As such Treasury management is as important as ever. Multinationals need to act decisively and consider the implications of revenue hungry Governments searching for new ways to tax cash rich multinationals.
Indirect tax can also form a key role in optimising structures. Improving VAT cash flow can be an effective way in which to manage this trend and avoid the erosion of profit margins.
Furthermore, actively monitoring your business operations, especially during periods of growth or M&A activity will allow the business to be accurately structured to reflect its global reach.
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For further information please contact:
Abigail Tarren, COO
T. +44 (0)207715 5243