© 2015 Deloitte The Netherlands Organising the Tax Function Robbert Hoyng Partner Deloitte Jos...

© 2015 Deloitte The Netherlands

Organising the Tax Function

Robbert HoyngPartner Deloitte

Jos BeerepootTax Director ABN AMRO


Are we doing the right things?

Effective

2


Translate strategic objectives into tax objectives

Effective

3

Top ten mobile operator

2015

Accelerate growth existing

processes

Consolidate existing assets

Expand into adjacent markets

Primary listing LSE

Acquisitions LicensesProvide career opportunities

Avoid business disruptions

Stable and predictable ETR

Manage cash repatriation

Implement a Tax Control

Framework

Manage tax accounting

Be compliantTax Filing

Strategic objective

Strategic drivers

Strategic actions

Tax actions

The role (and potential need for improvement) of the Tax Function varies with the maturity level of the organisation.


Which face suits you best?

The four faces of a tax Executive

4

Stimulate action across the organisation to achieve strategic and financial goals

• Execute strategic choices

Protect and preserve the assets of the organisation

• Accurate and timely compliance• Accurate and timely reporting – both for

management and externally• Effective engagement with tax authorities and

audit defence• Risk management

Balance costs and service levels to fulfil responsibilities

• Benchmarking• Leverage technology• Execute Finance Transformation

Provide financial leadership in determining strategic direction and align financial strategies

• Alignment of commercial and tax strategies


Locating tax department roles and responsibilities

Governance

4


Are we doing the things right?

Efficient

6


Towards an integrated tax lifecycle enabled by tax technology

Efficient

7

Tax function responsibilities

Tax Function

ProvisionIncome Tax Compliance

Audit Management

Planning Indirect TaxTransferPricing

GlobalMobility

Cash Management & Forecasting

(Treasury)

Information Reporting

Business Partnering

Lobbying


The available infrastructure can be overwhelming

Tax technology infrastructure

8


Do we have proper control and accountability information?

Transparent

9


Know your stakeholders

Transparent

10

• 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


Tax transparency is developing at high speed

Tax transparency initiatives

11


Tax transparency is developing at high speed

Tax transparency initiatives

12


Example of an initiative

Transparent

13

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 acountry’s oil, gas and mining resources.


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.*

Deloitte’s Responsible Tax Research

14 * Source: Deloitte Responsible tax: Tax transparency developments in 2014


Value added

16

Cost savings (for example: standardization/

automation)

Data quality Data analytics (for example: VAT)

Connection with the business

(for example: transaction planning with the business)

17 © 2015 Deloitte The Netherlands

Tax Risks

Policy

Governance &

Organisation

Resource

Tax risk level not in line with company’s risk appetite and not matching overall business profile. Includes risk on policy execution.

Lack of the right organisational structure and

governance to implement tax strategy.

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.

Not able to detect and monitor occurring risks and not having tax positions accurately reflected in our reports.

© 2015 Deloitte The Netherlands Organising the Tax Function Robbert Hoyng Partner Deloitte Jos...

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