The great tax offshoring debate
And how stakeholders can move beyond it
Continuing economic pressures, along with greater confidence in the offshoring model and its enabling technologies, are prompting some leaders today to consider offshoring any activity that entails significant labor costs, even in areas some may still consider off-limits.
In debates over offshoring U.S. income tax, the differences between many CFOs and tax directors are usually much more perceived than real. We encourage CFOs and tax directors to start the discussion, not by debating the pros and cons of offshoring U.S. income tax, but by identifying the business outcomes they want to achieve. Having identified a common set of goals, they can then work hand in hand to learn more about the issues, understand each other’s perspectives, and—ultimately—select and pursue a course of action that both believe can benefit the organization and improve tax department effectiveness and efficiency.