Economic downturn 'forces businesses to focus on tax savings'

News Article - Thursday, August 14, 2008

filed under: Business

PricewaterhouseCoopers claims more businesses are wising-up to the advantages of managing tax effectively as a result of the credit crunch, Accountancy Magazine reports.

According to the firm, there are a number of things companies can do in the current economic climate to control costs.

It suggests businesses make quarterly tax payments based on expected productivity, rather than on budgeted figures which may seem optimistic when the time to pay comes round.

Salary supplement arrangements can be utilised to help bosses save on employment costs without the necessity to reduce the workforce and companies with empty properties may also be able to claim business rate savings.

Richard Farnsworth, PwC tax director, said: "Cash is king and with intense focus on the credit crunch, companies are starting to recognise the benefits of managing tax effectively."

PricewaterhouseCoopers was established in 1998 following a merger between Price Waterhouse and Coopers & Lybrand.

It is now one of the world's largest professional services firms.

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