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Plan Now for Pending Cuts to Your Tax Department
Day after day, we read reports of disconcerting financial and economic events worldwide. Certainly, Europe takes the lead with its continuing problems of financial system instability. Capital is fleeing at-risk countries, putting further strains on already weakened capital bases of even the largest banks in the region. Unemployment for much of Europe is persistently in the ranges seen during the Great Depression. Countries outside Europe aren't immune from the economic turmoil, as we see economies cooling in Asia. Purchasing managers' indexes continue to be reported under the 50 percent mark that above which normally signals an economic expansion. Taxand US discusses things multinationals should consider that will hopefully allow the tax department to minimise any pending spending cuts.
There continue to be other concerns too, such as the ever-increasing debt burden of students and parents for college debt, which continues to rise even as we see total credit card debt decline as households continue to de-leverage. While the housing market seems to be stabilising nationwide, we read reports that as much as 25 percent of all home sales are foreclosure sales.
Taxand US provides a more in depth look at this issue
Even if the pessimism that we hear and read about daily doesn't result in a return of an economic recession, or even if your company is perfectly aligned with a counter-cyclical profit engine, taking one or more of the steps outlined above will serve the best interests of the tax department in the long run. These steps can be seen as a part of continually improving the performance of the department, and doing so with the most prudent amount of expenditures for the task. Failing to anticipate the need to make changes may result in suboptimal changes that in fact do long-term harm to the organisation. Using a scalpel now may help you avoid the fate of a meat ax later.
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