• Tax Effective Value Chain Management

Tax Effective Value Chain Management

30 August 2018

Alin Irimia, Head of Transfer Pricing & Value Chain Taxation

Where your business model is changing, we can help manage resulting tax risk and optimise the group's tax position in a sustainable way going forward.

Business Model - changing times 

A growing number of businesses are looking to change their business model to drive both customer and shareholder value in the marketplace. This often has a major impact on key elements of an organisation's value chain - those critical activities and assets required to generate profits - including, either individually or together:

  • Development and launch of new products
  • Setting up in new markets
  • Introducing central procurement
  • Moving production to lower-cost countries
  • Changing or moving the management structure
  • Integrating new acquisitions

With proper planning, commercial benefits can be amplified by ensuring a new model maximises available tax benefits. This includes minimising up-front tax costs which could arise from the change process as tax authorities focus increasingly on business restructurings and how local territories share a multinational enterprise's income and profit.