FOUR REASONS TO ALIGN YOUR SUPPLY CHAIN AND TAX STRATEGIES

Did you know that 45% of tax executives say they are not involved in supply chain planning?

That’s according to BDO’s 2022 Tax Outlook Survey, which found that business leaders do not always consult with their tax departments on decisions that can affect their companies’ total tax liability. But do tax executives really need to be involved in supply chain planning? The short answer: yes.

Our guest speakers this month are Mike Helm (BDO, Global Value Chain and Transfer Pricing Senior Manager), and Peter Terilli (BDO, Global Value Chain America’s Regional Leader and Transfer Pricing Partner).

This session will focus on four major benefits of aligning your tax and supply chain strategies.

1. Balance Operational and Tax Efficiency 

When tax and operational leaders work closely together, your organization will have an edge over the competition in terms of speed and cost. Aligning tax and supply chain strategies can help ensure that all supply chain decisions are made in a tax-efficient manner.

2. Optimize Your Total Tax Liability 

Companies optimizing their total tax liability in the context of supply chain planning must find opportunities to achieve tax savings while also avoiding decisions that have unwanted tax impacts.

3. Manage and Mitigate Tax Compliance Risk

Tax authorities around the world are stepping up scrutiny to recoup lost revenues from the past few years of economic turbulence. This makes it critical that companies update their transfer pricing policies and align them to their current business practices. If your tax structure falls out of sync with your operating model, you could be subject to additional tax exposure via tax disputes or double taxation.

4. Future-Proof Your Tax Structure

If your tax planning approach is reactive to your supply chain strategy, you will be stuck with a patchwork tax structure that requires continual updates. Future-proofing your tax structure means building a foundation that is flexible and aligned with your business’s goals.

The Way Forward

As businesses prepare for a possible recession, many will consider significant changes to their supply chain to increase cash flow and improve resilience. Organizations that have aligned supply chain and tax strategies will more successfully pursue these approaches.

NOTE: Bring your questions to the session and we will be sure you have time to ask them during and at the end of the presentation.