July 16, 2012
Joseph Perry, Partner-in-Charge, Tax & Business Services & Robert Spielman, Partner, Tax & Business Services Featured in Financial Executive Article "Enhancing Shareholder Value in Uncertain Times"
With the 2001 and 2003 tax cuts again set to expire at the end f the year, new corporate tax proposals under serious consideration and $1.2 trillion in federal spending cuts due to kick in, businesses face myriad challenges in tax planning.
The potential changes to the 2012 tax landscape, and what may be applicable in 2013 and beyond, are so important that management must assess all its options to enhance shareholder value in the coming months.
Focusing on shareholder value requires focusing on corporate tax matters. After all, the more money a company pays in tax, the less is available for the most important stakeholders; the firm's shareholders. Conversely, if corporate tax rates decrease or tax incentives are applied, additional cash may be distributed to shareholders or reinvested in the company, thereby increasing shareholder value.