Ernst & Young's international tax practice helps companies navigate
TORONTO, May 8 /CNW/ - Governments everywhere are ramping up their
economic stimulus efforts. But before making moves based on these programs,
Canadian companies must understand the global picture and all tax
implications, says Ernst & Young.
In Worldwide fiscal stimulus - tax policy plays a major role, Ernst &
Young explores the tax elements of stimulus packages in 24 jurisdictions and
the European Union.
"Our new guide shows things are evolving very quickly. The economic
environment looks different from one day to the next," says Trent Henry, Ernst
& Young Tax managing partner. "The stimulus approach varies from country to
country, which means companies must understand how both domestic and
international measures are going to affect their opportunities, their
competitors' opportunities, and their bottom lines."
Now more than ever, this really is a small world, says Henry. "The
financial crisis has shown just how connected economies, markets and
businesses are, and that markets can be very volatile. The tremendous risks
and opportunities have to be approached with an understanding of the global
fiscal and economic landscape. Organizations have to bring international tax
up on their corporate agendas and into the C-suite if they want to succeed."
Henry says companies that understand the measures described in the guide,
and ask themselves tough questions now, will be positioned to better
capitalize on opportunities. Tax directors in particular should be focusing on
a number of key questions:
1. Are we choosing stimulus programs that match our overall business
2. How are global stimulus efforts likely to affect our competitors? Our
customers? Our suppliers?
3. Are we managing our cash effectively based on operating requirements?
Capitalizing on acquisition opportunities? Being safe from
opportunistic overtures by other market participants?
4. Are we improving our relationships and communications with the
5. Are we getting involved in, and shaping, the tax policy development
Ernst & Young's international tax professionals have the global insights
and perspectives to help companies build integrated global tax strategies that
address their tax risks and achieve sustainable growth.
In 2008, Ernst & Young was named the number-one transfer pricing practice
in both Canada and North America by International Tax Review.
About Ernst & Young
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