Performance management during crisis periods – How inter-company transactions can positively influence the business model

The current paper explores how inter-company arrangements within a group can positively influence companies’ performance management strategies. In current globalization era, taxation system transcends the countries boarders, being a tool used both for eliminating double taxation for an income, but also as leverage in modern commercial wars (e.g. import taxes between USA and China). Thus, it can be considered that taxation knowledge provides a competitive advantage to all companies that are considering it as a business tool, in an ethical manner. The necessity of such an analysis appeared during the second part of the pandemic crisis, when we noticed that companies part of a group managed to perform during the crisis period due to cash allocation within the group. This is a multi-disciplinary study, being obtained by combination of the following subjects: (i) performance management, (ii) international taxation, (iii) transfer pricing and (iv) game theory. The purpose of this paper is to demonstrate that, with a strategic tax mechanism, companies can restart their business in the post-pandemic period with a competitive advantage. Strategy is the key and everyone who have such a key will stay in the market game.