Organising the Tax Function
Robbert Hoyng
Partner Deloitte
Jos Beerepoot
Tax Director ABN AMRO
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Effective
Are we doing the right things?
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Effective
Translate strategic objectives into tax objectives
Strategic objective
Top ten
mobile operator
2015
The role (and potential need for improvement) of the Tax Function varies with
the maturity level of the organisation.
Strategic drivers
Accelerate
growth existing
processes
Consolidate
existing assets
Expand into
adjacent
markets
Strategic actions
Primary listing
LSE
Acquisitions
Licenses
Provide career
opportunities
Tax actions
Tax Filing
Avoid business
disruptions
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Be compliant
Stable and
predictable ETR
Manage tax
accounting
Manage cash
repatriation
Implement a Tax
Control
Framework
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The four faces of a tax Executive
Which face suits you best?
Stimulate action across the organisation to
achieve strategic and financial goals
Provide financial leadership in determining strategic
direction and align financial strategies
• Execute strategic choices
•
Alignment of commercial and tax strategies
Protect and preserve the assets of the
organisation
Balance costs and service levels to fulfil
responsibilities
• Accurate and timely compliance
• Accurate and timely reporting – both for
management and externally
• Effective engagement with tax authorities and
audit defence
• Risk management
•
•
•
3
Benchmarking
Leverage technology
Execute Finance Transformation
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Governance
Locating tax department roles and responsibilities
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Efficient
Are we doing the things right?
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Efficient
Towards an integrated tax lifecycle enabled by tax technology
Tax Function
Provision
Income Tax
Compliance
Audit
Management
Planning
Indirect Tax
Transfer
Pricing
Global
Mobility
Cash
Management
& Forecasting
(Treasury)
Information
Reporting
Business
Partnering
Lobbying
Tax function responsibilities
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Tax technology infrastructure
The available infrastructure can be overwhelming
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Transparent
Do we have proper control and accountability information?
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Transparent
Know your stakeholders
•
External stakeholders:
•
−
The financial community
−
Employees, customers, suppliers and broader society
−
The tax authorities
−
Regulators
Internal stakeholders:
•
−
CFO
−
CEO
−
Board of directors
−
Public relations
Managing behavior:
It is increasingly common to have an over-arching tax policy. The policy needs to be owned by the business, recognised and approved at
board level and understood by all those in the business who touch tax in one way or another
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Tax transparency initiatives
Tax transparency is developing at high speed
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Tax transparency initiatives
Tax transparency is developing at high speed
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Transparent
Example of an initiative
Describing the tax position is not limited to the tax content of financial
disclosures. The OECD, industry regulators, US legislators and the European
Union have new and emerging reporting requirements which incorporate tax.
*
* The Extractive Industries Transparency Initiative (EITI) provides a standard for transparency in the governance of a
country’s oil, gas and mining resources.
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© 2015 Deloitte The Netherlands
Deloitte’s Responsible Tax Research
Tax Transparency developments in 2014
This is the first year in which we have analysed accounts for the 162 quoted companies in Austria, Belgium, Denmark, Germany, the
Netherlands, Norway and Sweden (together N-WE), but this year’s review of the Financial Times Stock Exchange Index 100’s group financial
statements, noted a year-on-year increase of 33% in instances of voluntary tax disclosure across the various categories.*
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* Source: Deloitte Responsible tax: Tax transparency developments in 2014
© 2015 Deloitte The Netherlands
Value added
How to add value to the business?
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Value added
Cost savings
(for example:
standardization/
automation)
Data quality
Data analytics
(for example: VAT)
Connection with the
business
(for example:
transaction planning
with the business)
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Tax Risks
Policy
Governance &
Organisation
Lack of the right organisational structure and
governance to implement tax strategy.
Resource
Risk of not having right skills/competencies/
capabilities. Insufficient training & education.
Compliance &
Documentation
Risk of not complying with law, insufficient
documentation to safeguard our positions.
Reporting &
Risk Mgmt.
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Tax risk level not in line with company’s risk
appetite and not matching overall business
profile. Includes risk on policy execution.
Not able to detect and monitor occurring risks
and not having tax positions accurately
reflected in our reports.
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