Building on my previous article, which looked at the tax implications of the 2018 KPMG CEO Outlook findings, at a high level, I now want to delve deeper into tax risk areas. Here are five tax considerations I think should be top-of-mind for multinational CEOs and their leadership teams in today’s environment.
CEOs need to be thinking about the future, about what society is going to expect of tax policies and the companies that adhere to them in three years’ time and beyond. Tax risk has a long tail on it, and what you do today might end up in the courts in ten years’ time, so you must endeavor to anticipate how society will be thinking in the future. This is important, even though it differs by geography—the discussion about society's expectations of corporates in relation to their tax policies in the United States is very different from the way it is in Europe, for example. But multinational organizations need to be attuned to those different societal expectations. In the end, I think it's about having a global view. If you are a multinational business leader, acting with a global mindset, understanding how these things are developing in different countries and trying to look forward to how expectations will change, then you can adapt your business for sustainable growth. That sustainable growth is, according to our research in the CEO Outlook, what organizations are most eager to find in this environment, and progressive thinking about tax definitely has a role to play in achieving it.