Opportunities as well as threats are coming from many different directions, with global markets opening up and multilateral and bilateral trade pacts influencing market and supply chain structures. Delivery channels are multiplying, with many removing barriers to entry. Companies are increasingly pursuing market space through mergers, acquisitions and alliances.

As ownership and operations cross borders and as these borders progressively blur, the complexity of tax grows exponentially. Managing this complexity means that tax can no longer be treated as an afterthought. It has to be an integral part of a forward planning for the entire business organisation.

A further challenge is posed by the fluidity in the tax and regulatory environment. New laws are introduced frequently and existing laws and regulations are reinterpreted. The stance of the regulators is becoming increasingly rigorous. This requires any tax strategy to not only respond to the prevailing tax and regulatory environment, but also anticipate the contours of likely future developments. An inadequate appreciation of these dynamics can expose businesses to franchise risks, besides increasing the overall costs of doing business.

The benefits of using tax as a competitive advantage are too important to underestimate. Tax today is much more than compliance planning. Instead, it is vital that the tax function contribute to business and financial performance like any other part of the organisation.

The company´s ability to capitalize on the lowest effective tax rates domestically or across multiple jurisdictions, can directly impact its market valuation. How tax is treated in a transaction can be critical in determining the success of a new venture. The ability to minimize tax and maximize value depends on the ability to implement a forward looking tax strategy.

Moreover, to be successful, the speed at which one can put ideas into action is critical.