Explore your corporate tax planning options
Corporate tax directors are responsible for keeping up to date on tax legislation of many types across many jurisdictions, while also supervising their company's CEO/CFO certification process and disclosure requirements. With all the regulatory requirements public companies must also fulfill, identifying strategies to help reduce corporate taxes can pose a significant time and resource challenge for today's tax director.
Tax rate management begins with knowing your effective tax rate
Before you can explore strategies for minimizing your corporate tax rates, you need to know where you stand. Good tax planning should begin with a calculation of your company's effective tax rate (ETR), and an understanding of how you compare with your peers.
Deloitte international tax partner Peter Corcoran has compiled the ETRs of 200 Canadian companies in an effort to establish some benchmarks for comparison. "Knowing industry averages allows you to ask some questions that normally you may not think of asking," he points out. To see his industry comparison chart, download A new age of tax planning.
Corcoran also interviewed several senior tax managers to understand their various functions and responsibilities. The result is an insightful perspective on tax planning in the current environment. While managing effective tax rates remains essential to a company's bottom line, tax directors are much more concerned about methods used to manage and minimize their company's tax situation.
By carefully reviewing tax rate management strategies and integrating them into an overall business strategy, Canadian companies can continue to realize tax benefits.
To learn more about effective tax rate management, read A new age of tax planning.
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A Deloitte publication (4 pages)
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Source: Deloitte & Touche LLP - Canada (English)
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