I have often seen many multinational organizations quoting the increase in top-line figures as an important indicator of growth for a company. Often the management forgets to focus on the bottom line (profits) and something that is below the bottom line (i.e.taxes). While you as an organization is growing at a fantastic pace in terms of your sales, you may be bleeding in cash flows by contributing more than necessary to the government treasury in taxes and thereby leading to direct impact on the shareholder’s retention or earnings (EPS).
Here are top 5 best practices for an MNC to follow to manage their taxes and tax risk to avoid surprises (jurisdiction agnostic points)
There could be many more practices, which could be treated and amongst the best for an MNC, however, it depends on the industry that you function, the country that you operate and the management that drives the company. The above mentioned 5 aspects are a key or basics to the current environment of taxation.
In case you have any further thoughts, you may like to contact the author.
CA. Akshay Kenkre
akshaykenkre@gmail.com
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