Tax relief for a multinational company: anticipating risk zones and strengthening tax strategy

In a multinational group, a tax adjustment rarely originates in a single isolated transaction.

It may result from a set of choices concerning transfer prices, the location of functions, intra-group flows, financing, the substance of entities or the distribution of profits between several jurisdictions.

For international groups, therefore, the real strategic question is: where vulnerable areas are located before they become a major tax cost.

Identify tension points in international architecture

A structure can be economically coherent while presenting certain fiscal imbalances.

Unusual margins, low-paid entities, large financial flows, poorly located central functions or differences between the real substance and the distribution of profits may attract the attention of administrations.

The firm analyses these elements as a whole in order to identify potential inconsistencies and assess their tax impact in the different jurisdictions concerned.

This reading allows for the prioritization of risks and, where relevant, to consider a more robust reorganization.

Using Tax Risk as a Pilotage Tool

For a multinational, the quality of a tax strategy is not only measured by the savings it makes possible.

It also depends on its ability to maintain a coherent, documentable and economically defensible architecture in several States simultaneously.

The firm's expertise is to put fiscal performance and risk exposure in perspective in order to steer groups towards stronger, more legible and better adapted structures for their international development.

Master Edouard Pruvost specializes in international tax strategy advice for groups. The firm works with complex organizations to identify tax exposure areas, analyse their impact and design more robust and efficient strategies. To have your international organization analyzed and to benefit from tax strategy advice, contact the firm.