Pooling, the practice in which treasuries consolidatefunds from subaccounts into a central account, provides companieswith better visibility into their cash. But pooling can bechallenging to implement across national borders, in large partbecause of tax regulations.

Susan Hillman, a founding partner at Treasury Alliance Group, aChicago area-based treasury consulting firm, cautioned thatthe tax issues involved in cross-border pooling are “verycomplex and need to be vetted by each company's tax counsel.

“You're not just dealing with U.S. tax law, you're dealing withcountry-by-country tax considerations,” said.

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Susan Kelly

Susan Kelly is a business journalist who has written for Treasury & Risk, FierceCFO, Global Finance, Financial Week, Bridge News and The Bond Buyer.