All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Tax contingency planning for a crisis in the eurozone

euro-notessmall.jpg

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.



More from across our site

But experts cast doubt on HMRC's data and believe COVID-19 would have increased the revenue shortfall.
EY’s plan to separate its auditing and consulting businesses might lessen scrutiny from global regulators, but the brand identity could suffer, say sources.
Multinationals are asking world leaders to put a scale on carbon pricing to tackle climate change at the 48th G7 summit in Germany, from June 26 to 28.
The state secretary told the French press that the country continues to oppose pillar two’s global minimum tax rate following an Ecofin meeting last week.
This week the Biden administration has run into opposition over a proposal for a federal gas tax holiday, while the European Parliament has approved a plan for an EU carbon border mechanism.
12th annual awards announce winners
Businesses need to improve on data management to ensure tax departments become much more integrated, according to Microsoft’s chief digital officer at a KPMG event.
Businesses must ensure any alternative benchmark rate is included in their TP studies and approved by tax authorities, as Libor for the US ends in exactly a year.
Tax directors warn that a lack of adequate planning for VAT rule changes could leave businesses exposed to regulatory errors and costly fines.
Tax professionals have urged suppliers of goods from Great Britain to Northern Ireland to pause any plans to restructure their supply chains following the NI Protocol Bill.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree