Integrating Tax and Operational Strategies for Long-Term Value
Integrating Tax and Operational Strategies for Long-Term Value
In today’s rapidly evolving business environment, the integration of tax and operational strategies remains essential—especially for Irish enterprises exporting to the United States. The recently ratified EU‑US trade framework imposes a 15% tariff on most EU exports to the US, representing a significant increase from the historical average. This development drastically affects sectors vital to Ireland.
By promoting collaboration between tax and operational leadership, multinational organisations can make supply chain decisions that align with their comprehensive tax posture—thus managing increased cost exposure, preserving cash flow, and reinforcing competitiveness amid this tariff landscape.
1. Balance Operational and Tax Efficiency
Tax and operational teams in Irish businesses must align closely to navigate the financial impact of the new 15 % tariffs.
Rapid communication of tax implications—supported by robust tax technology and effective data management—enables timely decision-making. With appropriate investment in systems and skills, the tax function can support operational leadership with accurate, strategic projections tailored to the prevailing trade policy.
2. Manage Total Tax Liability
As Irish businesses reassess supply chains—for instance, shifting operations or capacity due to trade volatility—they must consider exit taxes on assets such as intellectual property or production facilities. In addition, tariffs now increase the direct cost of exporting to the US which highlights the extreme importance of involving the appropriate customs and logistics personnel of your organisation.
Tax planning must incorporate both direct tariffs and incentives, to optimise total tax liability. Failing to integrate these considerations early could expose organisations to unexpected costs or missed tax-saving opportunities.
3. Manage and Mitigate Tax Compliance Risk
Heightened US and EU scrutiny, combined with shifting trade policies, increases the importance of maintaining coherent transfer pricing policies and aligning tax structures with operational realities. Misalignment may expose companies to audit risk, double taxation, or tax disputes.
Irish tax leadership must stay apprised of both global trade developments and sector-specific tariff exclusions.
4. Prepare for the Future by Creating Flexibility
To avoid a reactive, patchwork tax structure, Irish organisations should establish a tax-strategy playbook capable of adapting to major business decisions—such as offshore or reshoring moves, mergers and acquisitions, supplier shifts, or expansion into new markets.
Such a proactive, flexible framework provides confidence amid trade uncertainty and ensures continuity even if further tariff adjustments occur.
The Path Forward for Irish Organisations
- Embed tax considerations into every operational strategy—particularly relating to supply chain reconfiguration or shifting operational footprints.
- Maintain active engagement with EU and national trade authorities to clarify sector-specific treatment under the 15 % tariff regime.
- Ensure full alignment between tax, transfer pricing, and operational models, to minimise risk of disputes or onerous tax exposure.
- Advance flexible, future‑proof tax playbooks to support agile responses to trade policy shifts or economic volatility.
Irish businesses that integrate tax and operational strategy—grounded in sector‑specific context—are more likely to navigate these new tariffs successfully, protecting margins and enhancing resilience.
To learn more about BDO’s comprehensive approach in improving your organisation’s supply chain, contact our team directly.
Content Adapted from BDO USA
