More companies are recognising the benefits of managing tax efficiency in the face of the economic downturn, says PricewaterhouseCoopers. The firm has provided some examples of how companies can improve their cash flow. Companies should make quarterly tax payments on the basis of the expected results, rather than on budgeted figures which, considering the current economic climate, could look overoptimistic by the time payments fall due. Owning an empty property could mean potential business rate savings, such as allowances to reduce usage and mitigate empty rate charges. A statutory rate reduction of 50% is also available for wholly unoccupied premises. Salary supplement arrangements can help employers save on employment costs without reducing the number of their employees. They may be used to structure the provision of, for example, pension plans, childcare, mobile phones, accommodation, travel and company cars. PwC tax director Richard Farnsworth said: 'Cash is king, and with intense focus on the credit crunch, companies are starting to recognise the benefits of managing tax effectively in the downturn.' He added: 'We are also seeing more focus on areas where tax costs can be reduced.'