Each supply chain has a unique structure. A detailed understanding of the operational elements of the supply chain is essential to effective and sustainable tax planning. Further, within tax, a multi-disciplinary approach is required to identify a broad range of potential efficiencies (property, sales and use, franchise, excise, state, and federal income tax).
Supply chains are not static structures. In fact, the structure of supply chains is constantly changing, as are the products they convey. The need for agility in the structure of supply chains leads to ongoing opportunities for tax efficiency or inefficiency, depending upon whether the organization has an operationally focused tax function. Significant investments in technology and processes in an attempt to create a competitive advantage can be squandered if tax is ignored.
About the Author: Giles Sutton, J.D., LL.M. is a Partner in the State and Local Tax practice of Grant Thornton LLP in the firm's National Tax Office in Washington, DC. Giles.Sutton@gt.com.