Talent in Demand as Companies Seek Effective Global Tax Strategy
The world of tax is changing. Now more than ever, effective global tax strategies are essential for high net worth individuals (HNWIs) as well as multinational corporations. A recent study released by the Society of Trust and Estate Planners (STEP) finds that tax competition between all countries is heating up. Meanwhile, industry experts say it is critical for companies to ensure their global tax strategies do not impede global business objectives.
The trend may be one reason why demand for global tax professionals is strong. Executive search firm, A.E. Feldman, says that Tax Manager to Partner jobs remain hot right now. Firms are competing for experienced candidates who can navigate the intricacies of statutory reporting and tax compliance, forge cultural and political alliances, and create key operational strategies while mitigating risk. A.E. Feldman’s President, Mitch Feldman, says professionals who are able to master the global aspects of business are in high demand.
Tax Advice Goes Global
A recent report by the Society of Trust and Estate Planners (STEP) reveals tax advice must span many countries and jurisdictions, according to International-Advisor.com. The report found that more sophisticated “global” tax planning is required to meet the increasingly complex needs of high net worth individuals (HNWIs). Furthermore, intermediaries who are able to provide tax advice on a global, rather than local, basis will have a clear competitive edge.
“Clients want home country compliance and international tax neutrality to avoid additional layers of tax,” the report quotes Keith Johnston, Director of policy for STEP, as saying.
The STEP research also identified several key trends, including the “Transparency Dividend,” which will see the distinction between offshore and onshore disappearing as tax competition between all countries heats up.
The “Minefield” of Tax Rules
Meanwhile, in today’s global business environment, multinational corporations must navigate what one expert calls a virtual “minefield” of U.S. and foreign tax rules affecting cross-border business.
In a recent interview with Smart Business, Doug Wright of Burr Pilger Mayer LLP says companies must plan ahead. “Effective upfront international tax planning can reduce a company’s global tax costs by minimizing the potential for paying double taxes to a foreign jurisdiction and the U.S.” Wright adds that, “An effective global tax strategy will balance U.S. and foreign tax considerations in the context of a company’s broader business and financial objectives. This translates into increased after-tax cash flow, increased after-tax earnings and financial statement benefits, and ultimately increased shareholder value.”
International taxation, however, has grown increasingly complex. According to Wright, “The various U.S. and foreign taxing jurisdictions are all seeking a bite of the same cross-border revenue apple. They have become increasingly proactive and diligent in pursuing collection of what they consider to be their ‘fair share’ of a company’s cross border revenues.” In short, widespread and complex international tax and transfer pricing rules are constantly changing, resulting in what Wright calls “a major minefield for uninformed companies.”
Amid the trend, multinational companies must develop a global tax strategy that does not impede global business objectives. “Companies that are not familiar with international tax rules, cross-border transfer pricing requirements and double tax treaties are much more likely to suffer unnecessarily high global tax costs, including increased tax compliance burdens and tax penalties,” Wright warns.
Now, as multinational companies seek effective global tax strategy, A.E. Feldman says the demand for tax professionals with expertise in the global aspects of business will continue to grow.
Are you working in Tax or International Tax? If you want to grow your career or address your firm’s talent needs, contact A.E. Feldman’s President, Mitch Feldman. Find out more about accounting jobs today!
