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Tax Considerations in Cross-Border Pooling

Cash management technique can be challenging to implement across national borders, given tax issues.

By Susan Kelly | Updated on October 16, 2013
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.

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

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