How efficient is your current global structure?
Companies that undergo operational or structural change should be aware of their tax costs given the importance of tax costs to corporate earnings. As companies evolve, they may find that their tax position is not aligned with their business operations and objectives.
In the absence of proper planning, companies may find they have evolved into an operating structure that is inefficient from a US tax perspective. Such companies may have operations in too many jurisdictions and/or in non-optimal jurisdictions.
An important current business trend shows that companies are actively revisiting their operational structure, streamlining their operations, revising their geographic footprint, and realigning their operations to coincide with their core competencies, as well as their expectations for growth.
Opportunity: Finding the right structure for your company
PricewaterhouseCoopers’ global structure alignment services group can help companies align their tax and operational structures by exploring and analyzing the complexities of economic transfers, deferral structuring, jurisdictional planning, operational infrastructure, and business support issues.
Through the realignment of key attributes such as functions, risks, and assets, a company may achieve an alignment which reflects the company’s operating model and corporate vision, while limiting its tax cost. Ultimately, by undergoing a tax efficient operational change, companies may achieve global tax savings, or may reduce the risk of unfavorable tax treatment, thereby adding bottom-line value to the company.
