Pooling, the practice in which treasuries consolidate funds from subaccounts into a central account, provides companies with better visibility into their cash. But pooling can be challenging to implement across national borders, in large part because of tax regulations.
Susan Hillman, a founding partner at Treasury Alliance Group, a Chicago area-based treasury consulting firm, cautioned that the tax issues involved in cross-border pooling are “very complex and need to be vetted by each company’s tax counsel.
Still, tax considerations are a problem.
Joseph Calianno, a partner at Grant Thornton, noted U.S. federal tax issues that could come into play.