Tax changes hit margins hard

The Government Shift

A change by the tax authorities in their calculation approach, justified on legal grounds with little attention to unintended consequences

What It Meant Commercially

Across the sector the financial impact of the changes was more than just material: it was potentially terminal, eroding margin and the ability to invest.

The Plan

• We worked first with to run scenario financial models of these tax changes. This allowed leadership across the global business to understand the risk and to make a number of immediate changes in anticipation

• From here we mobilised legal, tax, customer and policy perspectives to build a robust evidence base and case to take to Government

• From there we developed the engagement strategy to persuade Government of our case and to propose alternate taxation approaches that could deliver a win-win outcome for both sides

• Today, that engagement is already yielding results

Taking a Holistic View

• Understanding the depth of policy impact on the business allowed the company to move quickly to boost resilience

• Understanding the commercials allowed for an evidence base that was more persuasive than simple advocacy

• Integrating financial, legal and commercial thinking built a unified company response

• Understanding policy and politics deeply made for a successful campaign