Tax Changes Ignite a Butterfly Effect in Business
Tax, one of the oldest functions in the business world, is experiencing an unprecedented level of disruption. The most significant reform of the U.S. federal tax code in decades—the implications of which will resonate far and wide—is driving this dynamic moment in history. And, while the ripple effect of U.S. tax reform is likely to be felt for years to come, it’s not the only way the tax function is evolving.
New standards for international taxation are beginning to take effect and state taxation will have to adjust in significant ways to align with the federal changes. The ramifications of changes in corporate tax rates are just starting to play out, crucial rulings in the taxation of online purchases are on the horizon, and tax professionals will soon face a world where technology can handle much of the heavy lifting, leaving them with the opportunity to fill a more strategic role.
At this point of inflection, it’s critical that companies recognize how taxation and tax strategy impact every aspect of their business and bottom line. Those looking to get ahead should lean into these shifts, and take proactive steps to transform and integrate their tax departments with their business as a whole.
“Given the complexities of domestic and global tax regimes, seemingly small changes in business approach can have wide-reaching consequences to the various tax liabilities of a business. Examining a company’s total tax liability by considering all of its various tax dynamics is now a necessity for businesses looking to survive and thrive during this time of intense change.”
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MATTHEW BECKER
Managing Partner of BDO’s National Tax Office
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