Securing

tomorrow today

Setting up for

success

Mark Kennedy – Deloitte UK

Robbert Hoyng – Deloitte

Netherlands

1

The strategic challenge

Setting up for success

Delivering sustainable outcomes

Looking to the future

Contents

2

“That is a good,

low competitive

rate”

3

“There is an

important

international

agenda here about

greater

transparency”

“There are moral

questions about

whether we want

to encourage that

behaviour”

The strategic challenge – one perspective

“Fair rules of the

road for

governments and

business to obey”

4

The strategic challenge – echoed by others

The strategic challenge – tax choices and risks

5

Global MNC

Employees are

balancing reward

and ‘engagement’

Customers are

balancing price

and brand loyalty

Tax authorities are

balancing investment and

tax revenues

Investors are

balancing earnings

and revenues £

Companies face many tax

choices in relation to their key

stakeholders and these choices

need to be made (and associated

risks managed) under public

scrutiny

Setting up for

success

6

Setting up for success – four cornerstones

7

Strategy

Board endorsed,

defined risk appetite

Risk & Control

Proactive evaluation/

control of risks

Efficiency

Ongoing drive to streamline operations

Capability

People, processes and

systems to deliver

Setting up for success – focus on risk & control

Insight Analysis Follow-up

Technical analysis Facts analysis

People &

Organization

Technology &

Systems

Policy &

Procedures

Data &

Information 8

Setting up for success – focus on efficiency Global tax management challenges

9 Source: Deloitte Global Benchmarking Center. 2014

Unaware Fragmented Comprehensive Integrated Optimised

Setting up for success – where are you now?

Strategy

Risk

Capability

Efficiency

10

Current state? Your goal?

Delivering

sustainable

outcomes

11

Delivering sustainable outcomes Strategy

12

“’High taxation’ is the #1 strategic risk. Up from #13.”

Lloyds of London Risk Survey 2013

• UK pharma –

FTSE250

• Review ETR v

peers

• Identify options

• Compare

against policy

• Implement and

monitor plan

Delivering sustainable outcomes Risk & control

13

• Scandinavian

MNC

• Understand

existing risk

profile – identify

and map risks

• Enhance

controls and risk

reporting

• Increased

appetite for

controlled risk

Delivering sustainable outcomes Capability

14

• Dutch listed

manufacturer

• Finance/Tax

Transformation

• 4 Enablers

• Tax process

redesign

• Standardisation

“CFOs, too, are coming around to this way of thinking. Tax is a very important but often

overlooked element of Finance Management.” Source: Kennedy, Finance Management Consulting Marketplace

Delivering sustainable outcomes Efficiency

15

• Dutch listed

Retail Co

• ‘Simplicity - Fit

for Growth’

• Address

organisational

size and shape

• As-Is

optimization

• Process

integration and

automation

A thorough approach combined a detailed cost

baseline and external benchmarks to a set of

improvement ideas

Looking to the

future

16

Looking to the future Tax risk plotting

17

Looking to the future Competitor risk comparison

18

All

da

ta ta

ke

n fro

m p

ub

lic s

ou

rce

s

Risks identified

By Dutch N.V. Risks common to Dutch N.V.

and its competitors Risks only identified by Dutch N.V.’s competitors

Looking to the future Power of big data

19

Setting up for success - conclusions

20

1. Secure board endorsement for your strategy based on an informed analysis

of your options, appetite for risk

2. Proactively manage the key risks to the delivery of your strategy

3. Ensure you have the capability (i.e. the people, processes and systems in Tax

and the wider organisation) to realise the strategy and manage associated risks

4. Pursue an ongoing drive for operational efficiency through streamlining

processes, leveraging alternative delivery models and harnessing technology

5. And look to the future and the possibilities that big data and other opportunities

can provide

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