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The Tax Savvy Company Restructuring

White Paper Published By: PwC
Published:  Jun 14, 2018
Type:  White Paper
Length:  9 pages

Leaders shouldn’t forget that most structural changes will have tax implications. Thoughtful planning can convert tax traps into enhanced reorganization returns. Late last year, amid a barrage of public debate and media attention, U.S. president Donald Trump signed into law what has been widely recognized as the most sweeping U.S. tax legislation in more than 30 years. The move sparked a phenomenon in which practically everyone was thinking, and talking, about taxes. A pervasive event such as passage of the Tax Cuts and Jobs Act provides opportunities to bring an often overlooked but essential discipline to the forefront of the corporate leadership agenda: integrating tax considerations into business decisions. If there are two enduring certainties for companies, they are restructuring and taxes. And although restructuring, reorganizing, realigning — or whatever other term you assign it — is on the front lines of corporate life, taxes are often an afterthought. And that can be a costly mistake. Already, too many executives do not restructure their companies correctly. They choose to cut a percentage of costs across the board instead of focusing on their strengths. And even when executives do restructure in a way that’s smart, they overlook important tax implications. At best, this weakens the impact of a restructuring; at worst, it negates the impact altogether, leaving companies weaker than when they started. How do you restructure your company most effectively? And how do you combine that with right-minded tax strategies for optimum growth potential?

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