Business model optimization – is your business positioned to thrive?
The world of global tax is transforming. A global tax reset is underway. Is your business on solid ground to create value through business transformation?
The alignment of a multinational company’s operating model and its global tax objectives is an important step in enhancing corporate profitability and shareholder value.
Business leaders often have to make tough choices when faced with competing priorities such as competitive pressure in the market and the internal desire for growth, regulatory constraints, and increased public scrutiny.
Currently these challenges are compounded by the uncertainty of a changing landscape. This is partially the result of the OECD’s Base Erosion Profit Shift (BEPS) project which is expected to bring widespread regulatory and treaty changes across many jurisdictions.
Increased public transparency and new compliance obligations will present fundamentally new challenges for multinationals operating across multiple jurisdictions.
Business Model Optimization (BMO) is the process of integrating the operating model and global tax structures into the way a business operates. BMO is all about creating value through business transformation.
Even if your business has undertaken a BMO project in the past, now is the time to re-evaluate your strategy and choices to confirm you will have a sustainable model, that still makes sense in the new reset tax world.
Developing a tax model that is not based on operations runs the risk of curtailing the bottom line. And a business model that does not take tax into account may end up surrendering some or all of the profit it creates.
- Designing a BMO structure involves careful consideration of business strategy and initiatives.
- This iterative process aligns the tax requirements with the business requirements to provide stakeholders with insight for transformational decisions.
- An integral part of the process is analyzing risks to achieving the tax objectives and developing responses to manage the tax risks effectively.