Tax and Legal
Compliance and Risk Management
Finance and Accounting
Risk and Regulation

Effective Tax Rate (ETR) Modelling

A bespoke ETR modelling solution, to perform forecasting and scenario planning across territories, entities and products. ETR Analyser uses existing commercial forecasts, trade flows and transfer pricing policy to arrive at legal entity forecasts, including forecast cash tax positions by legal entity.

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Designed for your business needs

Effective Tax Rate (“ETR”) Analyser (with BEPS 2.0) forecasts your future tax position, which can be used to identify value creation opportunities.
With applications across Direct Tax, Substance and Transfer Pricing, the ETR Analyser is highly customisable.
With ETR Analyser, you are able to model the future cash tax position which can identify value creation opportunities.

Helping you navigate complex tax environments

In an ever changing tax environment, it has become more complex to determine the best ways to maximise enterprise value in acquisitions, disposals, IPOs, post-deal integration, and even the steady-state position for our clients. 

    How does Effective Tax Rate Modelling work?

    ETR Analyser can provide a view of cash tax and ETR at the country level, entity level, activity level, and even product level. This more granular view bridges the commercial view to a detailed tax view. This granular ETR modelling allows you to understand an organisation’s value chain to drive effective tax reform planning and operating model transformations.

    Calculates the effective tax rate and cash tax rate taking into account transfer pricing and tax attributes, such as losses and restrictions on interest deductibility, both at a group level and for individual countries and entities

    Leverages data obtained e.g. forecasts, understanding of the operating model and existing tax attributes

    Compares multiple scenarios to assist in determining an optimised operating model

    Quantifies value created from a tax perspective, specifically deferred tax assets that can be used in negotiations, taking into account commercial value creation initiatives

    May be used pre-deal to understand and address areas of risk in the operating model, including e.g. withholding tax on interest and dividends

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