Global Tax Advisers Focused Holistically on the Future

October 2019

Businesses today are more connected than ever before, but that doesn’t mean things are getting simpler. In fact, it’s just the opposite. From naturally increasing globalization, exacerbated by domestic political agendas, to the rise of disruptive technologies, business complexity is rapidly accelerating and many businesses are struggling to keep up with the pace of change.

As global business becomes increasingly complex, taxation of businesses has also become more complicated. Governments and other tax authorities are intensifying their scrutiny on corporate tax practices, increasing the need to work together and push for transparency mandates. Many tax authorities believe that tax should be imposed where the value is created. Companies that are innovating on a global scale must address a complex tax landscape both domestically and globally. 

Today’s market place is truly global. In a recent interview with BDO’s Global Head of Tax, Robert Aziz explains the need to have taxation in our global business thinking. Tax liabilities in today's environment are strongly influenced by how and where the business operates. Analyzing the business model and optimizing the tax position around business operations will in turn give companies a competitive tax edge and a sustainable strategy.  
 

Tax advisers of the future need to understand both business models and tax law, and they need to be able to consider risk appetite and reputational impact. A total tax liability mindset and global outlook to business planning is needed for tax professionals to consistently examine and update their operational strategies and optimize tax strategies.

The journey to an ideal future state based on current reality is long, given 46 percent of tax professionals are still adjusting to U.S. federal tax code changes and 31 percent are working through state and local legislative changes, according to BDO’s 2019 Tax Outlook Survey. While only 12 percent of tax executives name global taxes as their top challenge, nearly three-quarters of the businesses surveyed indicated they must adhere to complex global tax regulations. This confirms that attention and resources are allocated to issues at home and highlights opportunities available to those tax executives who stay abreast of global concerns.

We believe now is the time to move the decision making around effective total tax liability. Businesses who bring tax decision making to the strategy table will be able to better manage the risks and demands of these ever-increasing costs in a globally complex environment.