Publication date: 18.08.2025
Experienced Senior Legal Executive with 20+ years in multinational organizations, including multiple roles as General Counsel. Skilled in IT, IP, software licensing, M&A, compliance, and complex cross-border agreements. Trusted advisor delivering strategic, practical solutions to business, sales, finance, and operations teams in competitive environments.
Case Study: Tax Planning and Optimization for a Global IT Business
Introduction
Global companies often face the challenge of balancing compliance with international taxation while maintaining financial stability. The right approach to business structuring and effective tax risk management can significantly reduce costs, especially in complex contracts involving multiple tax jurisdictions. This case shows how a professional tax advisor supported a leading IT consulting firm, ensuring both tax optimization and long-term tax efficiency, with a special focus on US taxes and cross-border obligations.
Case Background
Information Services Group, Detroit, MISenior Contract Manager/Attorney, September 2007 – June 2014
- Acted as Senior Contract Manager/Attorney for the world’s largest sourcing advisory and data firm, focusing on the design, implementation, and management of IT strategies in the private and public sectors.
- Drafted and managed transactions involving software, applications, and service agreements with IT vendors.
- Advised major clients such as Symantec, General Motors, and Walgreen from a global perspective, analyzing governance, risks, and responsibilities in long-term sourcing agreements.
- Provided both on-site and remote guidance, ensuring compliance with contract terms, service levels, and pricing methods, while preventing value leakage.
- Negotiated contracts related to divestitures, including evaluation of software license costs and savings linked to post-divestiture assets.
- Achievements:
- Reduced GM’s backlog of outstanding IT contracts, resolving agreements valued at nearly $75M.
- Negotiated contracts with GM’s global IT suppliers, achieving cost savings of over $25M.
- Delivered strategic counsel for Symantec in India, China, Brazil, and Eastern Europe, managing vendor commitments across multiple tax jurisdictions.
- Oversaw governance services for Symantec’s agreements with vendors such as HCL and HPES, coordinating teams in India.
Role of the Tax Advisor
Key Objectives:
- Implement comprehensive tax planning in complex IT transactions.
- Enhance tax efficiency in contract negotiations and post-divestiture structuring.
- Apply international taxation principles in contracts across Europe, Asia, and the US.
- Support clients with strategic business structuring for global operations.
- Provide tax risk management to prevent exposure to costly disputes.
Tools Applied:
- Tax optimization strategies for license fees and supplier agreements.
- Use of offshore planning to manage global IT investments.
- Selection of favorable tax jurisdictions for cross-border contracts.
- Strategic evaluation of US taxes within global vendor agreements.
Results for Clients
- Achieved over $25M in savings through efficient contract negotiation and tax optimization.
- Developed compliance models that reduced exposure under US taxes and global frameworks.
- Applied offshore planning to balance investment flows and minimize overall burdens.
- Increased operational flexibility through better business structuring.
- Built a long-term model of tax planning integrated with client governance systems.
Services Delivered
- Design and implementation of tax efficiency strategies in IT contracts.
- Customized international taxation guidance for contracts across multiple regions.
- End-to-end tax risk management in restructuring and divestiture processes.
- Targeted business structuring to align financial and legal strategies.
- Consulting on the use of offshore planning while maintaining compliance.
Questions & Answers
Question
Why is tax planning critical in large IT contracts?
Answer
Because it ensures tax efficiency across global supply chains and prevents unnecessary costs.
Question
When should companies consider offshore planning?
Answer
When operating in multiple tax jurisdictions, but always with proper tax risk management in place.
Question
How can a tax advisor help with US taxes in global contracts?
Answer
By providing strategic analysis of local rules and ensuring alignment with international taxation obligations.
Question
What is the link between business structuring and tax optimization?
Answer
Correct structuring enables companies to reduce liabilities and maximize savings through better tax jurisdictions.
This case demonstrates how a skilled tax advisor can deliver measurable value by combining international taxation, business structuring, and tax risk management. Through careful tax planning, the use of offshore planning, and selection of optimal tax jurisdictions, the advisor ensured both tax efficiency and sustainable tax optimization. By addressing complex US taxes within global contracts, the client achieved significant cost savings and long-term competitive advantages.
