Our international tax planning services include reorganizing your corporate tax structure to optimize tax liability
Many of our clients’ relationships with THEVOZ Attorneys are event-driven: perhaps your company is starting a new venture in another country, or there is a change in the tax rules in a country in which the client does business, or there is a change in business conditions that could impact their tax picture. Perhaps the company has undergone a reorganization or is contemplating a merger or acquisition. However, one of the most important reasons to get THEVOZ Attorneys involved in tax planning is to review and optimize your corporation’s tax liability in all the countries in which the it operates to see if the corporation has maximized all the international tax opportunities available to it.
The reason is because international tax compliance regulations, tax brackets, tax penalties and tax treaties, etcetera, around the world are in constant flux. It is a worthwhile to bring all your tax planning processes together to review whether your company is meeting its goals, how tax changes are impacting those goals and what changes can be made to rationalize and improve the company’s tax picture.
Review international tax compliance regulations and historical tax planning
The tax planning process typically begins with a thorough review of your tax planning efforts, including a timeline of when specific plans were developed and what tax jurisdictions those plans were intended to have an impact. Any near-term strategic initiatives that are being considered are added into the planning process. A risk assessment of possible changes to tax codes effecting the company is important, too.
After a current analysis of the corporation’s tax structure, THEVOZ Attorneys can develop a global corporate and tax structure to meet your objectives. We then work with you to put these plans into place.
Most structural changes to a corporation could have implications upon the amount of taxes the corporation will pay, including starting a new venture, re-sourcing elements of a supply chain for greater flexibility and lower prices, etc. However, managers in the corporation may treat these tax implications as the cost of compliance and do not consider their tax options when restructuring. It is not something they evaluate as a cost when restructuring, even though they know taxes impact profitability and shareholders’ income. Failure to carefully consider tax implications, particularly in the context of other elements of the corporation’s tax structure, can create tax inefficiencies, or represent missed tactical opportunities that can have significant negative consequences for profitability.
Whether the impetus is a reorganization, merger, acquisition or other corporate structural change – or simply because there have been changes to international tax compliance regulations, tax rules and laws the corporation believes can have an impact on their bottom line – THEVOZ Attorneys can review your company’s tax structure to find inefficiencies and possible missed opportunities to optimize the corporation’s tax liability.