While the new federal tax law has generally been well received by the business community – particularly the reduction in the top corporate tax rate from 35 to 21 percent, tax professionals and boards have concerns about the significant uncertainty regarding key provisions of the new law.
Important strategic considerations for companies and their boards include:
Changes in the deductibility of interest and changes in cash flow may cause a company to reassess its capital structure and mix of debt and equity.
Capital allocation decisions, including decisions about investment in the business versus returning cash to shareholders, might need to be revisited in light of the increased liquidity resulting from lower tax rates and/or repatriation of foreign earnings.
Reassessment of the corporate footprint and intragroup pricing arrangements might be appropriate in light of the new international provisions.
Join NACD Atlanta for this Expert Series luncheon with KPMG tax experts Jose Rodriguez, Wally Henderson, Brent Jonson, and Patrick Browne. Hear an overview of tax reform including how companies and boards are deriving value from tax reform and how they plan to apply these tax savings over the next 2-3 years.
KPMG Ignition Center
1201 W Peachtree Street, Suite 300
Atlanta, GA 30309