The increasing complexity of the Global tax system and Australia’s federal tax laws and international anti-avoidance measures means that managing tax has become increasingly complex, with companies expected to improve their governance, accountability and transparency within a global tax environment that is outdated and convoluted.
In the past, the sole measurement of the tax function of a company was the effective tax rate. A better way for tax to align itself today is to move away from being a back-office function to supporting the business – being more business orientated and more aware of the objectives and strategies.
Business’s should consider including a tax strategy as an intrinsic component of the business plan. This ensures that business decisions are based not only on purely commercial and operational factors but also include an examination of the tax implications of the proposed strategy at the development stage rather than in response to a compliance issue.
Constant monitoring of developments in the international corporate tax regime is essential in order that forward planning incorporates projected changes that may affect clients.