Global cash management – international tax issues

In this issue FITAR presents a comprehensive study of the tax issues arising from international cash management. In this first article, Stuart Porter, Senior Tax Manager of PricewaterhouseCoopers’ Banking & Capital Markets team, provides a detailed review of the various tax exposures impacting global cash management arrangements that may be encountered by the multinational corporation.

Introduction

Multinational corporations are increasingly focused on centralising their banking arrangements and streamlining their bank relationships. Group treasurers are often given the role of managing the group’s cash not only when it is located in a group finance vehicle, but also those “pockets” of cash balances located within subsidiaries’ accounts.