“God grant me the serenity to accept the things I cannot change, the courage to
change the things I can and the wisdom to know the difference”
Ignatius Loyola c 1520
3
Tax transformed – the “professionalisation” of tax
5
People and
organisation
Processes
Systems
Tax Risk Management
Risks
ControlsTest
Report
Tax Policy Framework
Risk
appetite
Decision
making
Control
standards
Oversight
KPIs/KRIsCulture
and
ethics
Accountabilities
Tax Vision, Goals
and StrategyTax Outputs and
Communication
Increasing formalisation of tax policy
7
Accountabilities for taxes getting clearerGroups are increasingly defining their tax policy
Source: Deloitte Global Market Research, 2014
47%
29%
23%No
Yes, for some areas
Yes, for all four areas
Answering key questions
8
People and
organisation
Processes
Systems
Tax Risk Management
Risks
ControlsTest
Report
Tax Policy Framework
Risk
appetite
Decision
making
Control
standards
Oversight
KPIs/KRIsCulture
and
ethics
Accountabilities
Tax Vision, Goals
and StrategyTax Outputs and
Communication
“How is success
measured?”
“How are key
decisions made?”
“Who owns each
tax?”
“What governance
is there over tax?”
Identifying, controlling and reporting tax risks
9
Groups generally have processes for
identifying, controlling and reporting tax risk
More and more third parties have a specific
interest in tax risks and how they are managed
• Tax Authorities – e.g. UK,
Australia, Netherlands, Japan,
Spain
• International bodies – e.g. OECD
• Other regulators – e.g. FRC
• Investors – e.g. Local Authority
Pension Fund Forum
• Analysts – e.g. Schroders, Citi
• Indices – e.g. Dow Jones
Sustainability Index, MSCI World
• NGOs – e.g. Action Aid
Source: Deloitte Global Market Research, 2014
Developing a risk-based approach
10
People and
organisation
Processes
Systems
Tax Risk Management
Risks
ControlsTest
Report
Tax Policy Framework
Risk
appetite
Decision
making
Control
standards
Oversight
KPIs/KRIsCulture
and
ethics
Accountabilities
Tax Vision, Goals
and StrategyTax Outputs and
Communication
“How do we report to
the Tax Committee?”
“What are our key
tax risks?”
“Who are our ‘lines
of defence’?”
“When is Internal
Audit testing tax?”
Increasingly centralised decision-making
12
Global tax operating models: past, present and future
Source: Deloitte Global Market Research, 2012 and 2014
Pressure for continuous improvement
13
Satisfaction (% happy) with current model by driver and method
Source: Deloitte Global Market Research, 2014
Evolving the operating model
14
“Do we have the
right scale, roles,
locations?”
“Can we streamline
adjacent
processes?”
“What is the right
in/out/co-source
model?”
People and
organisation
Processes
Systems
Tax Risk Management
Risks
ControlsTest
Report
Tax Policy Framework
Risk
appetite
Decision
making
Control
standards
Oversight
KPIs/KRIsCulture
and
ethics
Accountabilities
Tax Vision, Goals
and StrategyTax Outputs and
Communication
“Can we leverage
our Shared Service
Centres?”
18
WHAT
can and cannot be solved with tax
technology?
solutions are relevant for tax?
do you choose: buy or build your
own?
Tax technology
23
AIM
Tax technology
technology to support both your tax
function as well as your organisation
as a whole
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