As chief tax officers manage complexity and change in tax, it’s important to take in the big picture. Geopolitical events and social trends underway today have the potential to drive the tax policy decisions of governments and the business strategies of global companies into the future. Chief tax officers should understand these developments so they can anticipate — and even influence — the potential effects on the business.
To help businesses navigate these choppy waters, tax leaders should understand how geopolitical trends might play out, what threats might arise and how exposure can be mitigated. Many companies are taking steps to manage their exposure by scenario planning — considering what’s likely, what alternatives are credible, what’s unlikely and what’s worst case — so they can chart their best course forward. Tax leaders have an important part in these endeavors to shed light on the tax angles of the strategic decisions being made.
