The Tax function plays a critical role as companies refocus on their cash strategies in a downturn economy. In such times, Tax and Treasury functions need to align on financing and repatriation options to maintain sufficient levels of liquidity.
In connection with intercompany financing policies, transfer pricing becomes critical and should be refined or developed in light of the external financing activity in which the group is engaged. As access to cash has become more challenging, businesses are looking to draw cash from all existing facilities and resources, internal and external, expand capacity, and deploy cash where needed. The overall impact of this difficult economic period will vary by group as well as by industry and sectors, but most groups will be affected.
