Poll: Tax Executives Concerned About Impact of Tax Law

By:
Chris Gaetano
Published Date:
Apr 9, 2018
TaxWorry

A survey of 150 public company tax executives has found that implementing changes from the Tax Cuts and Jobs Act is the chief concern for 91 percent of poll respondents, according to BDO. However while they understand that the task will be hard, executives believe it will be worth it, as 78 percent said they expect the provisions in the new law to have a positive impact on their businesses' net income, particularly the corporate rate reduction to 21 percent. Nearly all of the respondents, 97 percent, said this will be the most significant impact of the new law, followed by the foreign earnings repatriation, with 73 percent saying this would impact their business.

Participants overall believe that the new law will produce a "butterfly effect" from the impacts not only on their own company but on their industries as a whole: its impact will depend on legal structure, capital structure, geography, business objectives and more. 

 “Given the complexities of domestic and global tax regimes, seemingly small changes in business approach can have wide-reaching consequences to the various tax liabilities of a business,” said Matthew Becker, Managing Partner of the National Tax Office at BDO USA, LLP. "Examining a company’s total tax liability by considering all of its various tax dynamics is now a necessity for businesses looking to survive and thrive during this time of intense change.”

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