International business planning, from a tax and legal perspective, has long been an integral part of the business planning process for many Canadian companies. Given the importance of international business to the Canadian economy, this will undoubtedly continue.
The reality is that it is not only the large Canadian companies that are transacting international business. In all sectors, small and mid-sized firms are exploring and pursuing global business opportunities. In order to attain and maintain a competitive position, companies must look to all possible options. Far too often, companies that are well prepared from a domestic point of view have not looked at the international opportunities in planning. Many therefore miss out on important options that could vastly improve their international business position.
The use of the so-called "offshore" has often carried with it a somewhat dubious reputation. It is undoubtedly true that in the past many abuses took place, and that some of these may still occur notwithstanding new regulations to monitor offshore activities. However, the truth remains that the vast majority of companies have used, and are using, recognized and legitimate planning structures. These are not only legitimate, but are transparent to all revenue authorities.
Companies will use international planning structures for a variety of purposes. For many, the opportunity to operate at a more competitive price point is a key factor in their international success. For others it is the opportunity to utilize greater retained earnings to grow the Canadian and/or the international business. For others, risk management is the paramount concern.
Whatever the motivation on the part of the company, the reality is that international business planning has helped many Canadian companies achieve success in the global marketplace. This presentation explores some of the options available for companies undertaking active business internationally.
|
