This survey is compiled from a review of the financial statements of more than two hundred companies in the sector globally and from a tax questionnaire completed by a sample of companies in the sector. Several trends are apparent from the survey:
- Overall, the effective tax rate of companies in the sector has fallen by 1 percent over the last three years; a 1 percent fall in a company’s cash tax rate can have the same impact on shareholder value as an increase in sales of 12–15 percent.
- Retail companies have higher rates of tax than CPG companies.
- Domestic companies have higher rates than global companies.
The report analyses the reasons behind these trends, highlighting the major drivers which impact on the tax rate of companies in this sector, and discusses the attitude of retail and consumer companies to tax planning generally. The report also notes some of the major tax challenges and opportunities ahead for companies in the sector. The results are analysed by territory and sub-sector to facilitate benchmarking.
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