Organising the Tax Function Robbert Hoyng Partner Deloitte Jos Beerepoot Tax Director ABN AMRO

Are we doing the right things? Effective Are we doing the right things? How is the role of the tax executive changing? Which elements are the most important in your role? How much time do you spent on each element?

Translate strategic objectives into tax objectives 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 Piramide + plaat met levens cyclus (maturety model) (Tax director heeft een reactive rol vanuit het verleden. Dit is nu veranderd naar een meer pro-actieve rol met o.a. strategy en policy. Toch merk je dat tax directors daar niet aan toe komen. Tax Filing Be compliant Manage tax accounting Avoid business disruptions Stable and predictable ETR Manage cash repatriation Implement a Tax Control Framework

The four faces of a tax Executive Which face suits you best? 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 Opschuiven van beneden naar boven? Het tax team blijft wel voor het merendeel in de onderkant werken Houd hier rekening mee met de inrichting van je tax team. Wat wil je bereiken? Persoonlijkheids profielen

Governance Locating tax department roles and responsibilities

Are we doing the things right? Efficient Are we doing the things right? How would you determine the current (as-is) and desired state (to-be)? What would be your first steps?

Towards an integrated tax lifecycle enabled by tax technology Efficient Towards an integrated tax lifecycle enabled by tax technology Tax function responsibilities Tax Function Provision Income Tax Compliance Audit Management Planning Indirect Tax Transfer Pricing Global Mobility Cash Management & Forecasting (Treasury) Information Reporting Business Partnering Lobbying Van seperate processen naar een geintegreerd proces Wordt mogelijk gemaakt door tax technology Vaststellen wat de as-is is en de gewenste situatie (to-be)

Tax technology infrastructure The available infrastructure can be overwhelming

Do we have proper control and accountability information? Transparent Do we have proper control and accountability information? What information items could be requested in the nearby future? Which data will be needed from the organization and/or systems?

Know your stakeholders 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 Er komen steeds meer nieuwe transparency standaarden. Een governance board onderzoekt/bepaalt wens van compliance. Met elk nieuw transparency verzoek moet jij je afvragen waar je deze informatie vandaan haalt. Aandachtspunt! Dit is reden om bij finance transformation of implementatie van een ERP systeem of inrichting van een shared service center als tax betrokken te zijn!

Tax transparency initiatives Tax transparency is developing at high speed

Tax transparency initiatives Tax transparency is developing at high speed

Example of an initiative 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.

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.* Financial Times Stock Exchange Index = is de belangrijkste graadmeter van de effectenbeurs van Londen. * Source: Deloitte Responsible tax: Tax transparency developments in 2014

How to add value to the business? Value added How to add value to the business? How could you add value as tax function to the business? Hoe kun je de business leaders betrekken bij corporate income tax als zij beoordeeld worden op EBIT level

Value added Cost savings Data quality (for example: standardization/ automation) Data quality Data analytics (for example: VAT) Connection with the business (for example: transaction planning with the business) scenario planning: link naar toegevoegde waarde efficiency tax functie zelf: kostenbesparing, data kwaliteit link naar data anlytics bijv btw Aansluiten bij de business