Tax contingency planning for a crisis in the eurozone
Tax directors will be called on to advise their business colleagues on some tricky structuring questions if a member of the eurozone is forced out of the currency union.
It has not happened yet, but only the unwise would dismiss the possibility of one or more member states having to leave the EU’s currency union. The immediate risk may have receded but speculation is never far away.
If it happens companies will have to be prepared for it. Their contingency planning will have to be robust, not least when it comes to their tax arrangements.
An exit for any eurozone member is likely to have implications for all aspects of a company’s tax risk management.
Companies with operations in any member state that has exited will have to examine its international tax structuring and planning that takes in other member states that remain inside the currency union.
For the same reason, supply chain management, treasury operations and legal ramifications are unlikely to remain unscathed either.
International Tax Review is hosting a web seminar in December that will see specialists from Ernst & Young look at all of these issues and offer guidance about how tax departments can contribute to their company’s contingency planning for a crisis in the eurozone.
Participate in the web seminar by signing up on International Tax Review’s website.