What do Apple and Amazon have in common?
- They’re both headquartered on the West coast.
- They both started in garages.
- Their stocks have both seen incredible growth over the years.
- They’ve both been scrutinized by the government for their international tax strategies.
Although all four statements are true, it’s “D” that we’d like to direct your attention toward today. Apple made headlines when its chief executive was asked to testify before the U.S. Senate Permanent Subcommittee to dispute a new senate report on its tax strategies. And Amazon has been challenged by a government committee regarding its financial practices and the amount of taxes the company is paying.
Companies large and small are now participating in global markets; as such, they often earn money in other countries. That’s why repatriation, or the process of bringing cash earned abroad back home, must be a key component to any global financial strategy. Without proper planning, there are certain to be unanticipated consequences of bringing that money back.
Recently, a cross-section of our International Business Services Group wrote a white paper on this topic. It dives deeper into three specific facets of one’s repatriation strategy: business strategy, accounting, and income tax. You can read this white paper in full here >>
Does your global company have a plan for repatriation? If so, does it cover business strategy, accounting, and income tax?