Can tax strategies be part of companies' growth plans?

THE EY Growth Barometer 2017 found that Singapore's middle-market companies are very bullish about growth. 15 per cent of Singapore respondents expected growth of 26 per cent or more in the coming year, and 70 per cent forecast a revenue rise of 6 per cent or more. However, the same survey also highlighted cost-management concerns: Singapore middle-market leaders are intent on controlling costs and staying lean, with 14 per cent saying increased production costs are a challenge to growth.

Clearly, working capital management is an area that local companies grapple with. Without sound working capital management, a company can find itself in a cash crunch or even thrown off tracks in its growth journey by a lack of funds.

Surprisingly, tax is an option that companies can turn to as they manage their working capital, as tax payment can chip away at their bottom line and funds. Further, there may be tax opportunities to optimise cash flow if companies look hard enough.