In today’s increasingly global economy, organisations have choices as to where
they can locate their assets and activities. Because tax regimes are different country
by country, location decisions can have an important impact on after-tax free
cash flow. It is not just corporate taxes on profits that are affected, but also property
tax and excise duty on fuel. Customs regulations, tariffs and quotas become
further considerations, as do rules and regulation on transfer pricing. For large
global companies with production facilities in many different countries and with
dispersed distribution centres and multiple markets, supply chain decisions can
significantly affect the total tax bill and hence shareholder value.