With increased globalization and a strong Canadian economy, the pace of cross-border and international business increases every day. Regardless of your level of international involvement—working abroad, investing, buying and selling, borrowing or manufacturing—you face complex tax implications that are best addressed by professionals with international and cross-border experience.
Your goal is to avoid costly mistakes and being blindsided by complex offshore rules. It’s our job to help you meet that goal by assisting you with international ventures, helping ensure your profits are protected and working with you to minimize foreign tax liabilities. We also advise foreign companies investing in Canada.
Tax planning for multinational groups is often done on a country-by-country basis. This approach can mean losing significant opportunities to reduce the global tax burden through the synergies of cross-border tax planning.
By adopting a well thought out and properly monitored worldwide tax minimization plan, you may be able to significantly reduce your global tax burdens, which will ultimately enhance shareholder value.
As competition in the global marketplace becomes increasingly fierce, it is critical that you monitor and implement the latest international tax developments and techniques available in the various jurisdictions in which you operate. Also, new strategies must be developed for eliminating tax inefficiencies resulting from planning that is no longer relevant or that requires updating due to legislative, administrative or judicial developments.
As a multinational entity, you require a disciplined approach to ensure that tax structures and planning for your worldwide group are keeping pace with the evolution of business operations.
Begin by asking yourself these key questions:
• Why are we paying tax?
• In which of our jurisdictions are the effective tax rates the highest?
• In which are they the lowest?
• Are we properly structured to benefit from Canada's exemption
system, and is that system integrated with the opportunities for
foreign tax reduction that apply in many other countries?
• Have we implemented, where appropriate, investment
driven tax incentives offered in other jurisdictions?
• What are the legislative, administrative and/or regulatory
developments that could significantly change our
current tax position?
• Are all of our net operating losses being effectively managed?
If you need answers to any of the above, seek the advice of professionals with global expertise and industry-specific experience. Contact your Grant Thornton advisors.
Our international tax professionals have consistently shown that by working together with our multinational clients, we not only ease the administration of managing their tax affairs in multiple jurisdictions, but we save them significant tax dollars in the process.