Ways that tax reform is prompting major shifts in business strategy were shared by corporate executives and tax professionals in a workshop sponsored by Grant Thornton and Bloomberg Tax. “You almost have to forget what you knew yesterday about tax planning because the rules have all changed,” said David Sites
, partner in Grant Thornton’s International Tax Services.
The considerations entailed in those rule changes include organizational structure, domestic/international bifurcation, M&A, cash flow, credit rating, hiring — virtually every aspect of doing business. For example, because of tax reform provisions related to domestic and multinational business taxation, and increased capital to deploy domestically or internationally, Sites said, “The name of the game is not to minimize the U.S. base and maximize the shifting of income to foreign jurisdictions. The game is different now — it’s a balancing act.”
Succeeding in a different game will require new thinking and innovative approaches. According to Kelli Knoble
, National Tax Leader, Business Lines and People, “Companies are working toward revisiting strategies, structures, policies and how to position themselves in the best way to take advantage of these tax laws.”
In wide-ranging discussions about addressing tax reform impacts, Sites and Knoble were joined by leaders from the Federal Reserve Bank of Atlanta, Southern Company and SunTrust Banks, Inc.
For more on the discussions, watch the video.
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