Gary believes that elected officials will rely more heavily on executive orders and agency rulemaking rather than legislation to advance policies. As such, CFOs may have less information about what’s going on in Washington, but they can take clues from agency appointees about potential policy shifts. This is an interesting trend as it would mean that CFOs may have less information about what’s going on in Washington, but they can take clues from agency appointees about potential policy.
Tax Scenario Planning
CFOs are adding staff to address these challenges and use advanced tools and analysis to evaluate various tax scenarios. In the past, CFOs were satisfied with CFO Global Information Services (CFO GIS) tax model scores for a company’s U.S. and worldwide tax exposures, based on prior year tax events, which include significant U.S. tax treaties, for example.
More CFOs want to see their company’s exposure to future tax changes to help navigate how best to allocate resources and manage tax risk. This request for more comprehensive tax analysis is driven by tax information sharing requirements and the increasing frequency of new tax laws and regulations. This change in demand is making it more challenging for CFOs to determine their companies’ U.S. Read more
Implications of Future Tax Reform
Most CFOs will need to ensure that they are taking sufficient deductions and credits now in order to be sure to continue to qualify for them after proposed changes are enacted.
CFOs may want to review their pay structures to avoid being penalized by higher marginal income taxes. This includes investments in executive compensation for those employees who may have a high marginal tax rate in the future.
This will be an interesting trend as it would mean that CFOs may have less information about what’s going on in Washington, but they can take clues from agency appointees about potential policy shifts.
Gary McGaghey, author of the book “The 2020 Report” and a leading global futurist, has been quoted as saying that the next president will have to take on some big financial problems.
CFOs will need to consider the impact of potential future tax legislation on business structures. Tax structures that allow a company to shelter income can be used to offset operating expenses, thus allowing businesses to pay little or no tax. Changes to current tax laws may shift the tax benefit of such strategies.