Assessing tax is an annual benchmarking study that provides a detailed analysis of tax rate metrics and the drivers of these ratios for the metals industry. We have reviewed key tax ratios and their drivers for some of the world’s largest companies. The reports reflect the start of the worldwide financial crisis that affected so many companies in the fourth quarter of 2008, when a sudden decline in global demand led to a severe recession. Companies responded in different ways, some by withdrawing from unprofitable businesses, merging with other operations, restructuring obligations, lowering output, or reducing workforces. The focus of this activity was to enhance cash flow. As companies now increase their focus on managing tax, many are benchmarking their tax ratios against their peer groups to identify areas for savings.
This study provides our metals clients with insight into average key tax ratios for the different industries, trends in these ratios over the last three years, and drivers of the ratios. This year's report also includes a special article that discusses several of the Obama administration’s tax proposals and their potential impact on the industries.