Integrated tax planning is a smart way to leverage your supply chain. We believe it’s a trick that’s too good to miss.
Optimising your supply chain through tax efficient restructuring means designing business processes which are both operationally and tax efficient. The critical success factor is ensuring that the tax opportunities presented by a supply chain project are identified at an early stage and developed as an integral part of the project and that the tax team pinpoint and plan around any possible tax risks which may arise.
Would a tax efficient supply chain make sense for my organisation? A tax efficient supply chain may be a significant opportunity for your organisation if one or more of the following applies: your operations span several countries you have a complex supply chain eg multi-product, mulitiple manufacturing sites you have an annual turnover of more than £100m across the territories in scope your organisation is in profit – if you are not generating profit, the losses will be incurred in a low tax jurisdiction you feel your organisation would benefit from a supply chain restructure, process improvement programme or management information system upgrade – in other words, the supply chain has yet to be optimally conceived.
Can you afford to miss this opportunity? A combined supply chain and tax redesign can result in: A more efficient business A tax structure which maximises the financial returns of the commercial reorganisation Rapid payback making the project self-funding. (A reduction in taxation levels can have a substantial impact on the P&L, and fast. A manufacturer with a turnover of £500m and 7 manufacturing sites could typically expect to save in the region of £10m annually in tax efficiencies by appropriately structuring manufacturing, distribution and sales functions.)
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