1. Tax function of the future
Tax function of the future
Building the business case for change
Ann Marie Achille, Tax Reporting and Strategy Partner
Daryl Sherred, Tax Reporting & Strategy Director

2. Agenda Setting the stage – Drivers for the case for action
Business case basics
Quantifying and presenting a successful business case
Business case examples

3. Tax function of the future
Setting the stage – Drivers of the case for action

4. Setting the stage
To transform the Tax function organizations must develop a clear strategy and well-articulated business case.
A recent PwC global client survey asked about internal drivers of the tax function.
58% of companies had senior-level sign off of the tax strategy
Majority of tax strategies were introduced in last
5 years
Key Themes
Most important measures are:-
Tax risk mgmt.
Reduced ETR
Sustainable ETR
82% think performance measures are appropriate

5. Setting the stage (continued)
Key performance measures ranked by importance
Tax Risk Management – No surprises, penalties, material audit adjustments
Effective Tax Rate reduction
Effective Tax Rate sustainability
Delivery on significant projects
Maintaining or reducing the level of cash taxes
Accurate/Timely tax returns
Effective management of the team, improved efficiency, headcount mgmt.
Feedback from stakeholders including support given to the wider business
Others
Staying within budget
Staff engagement scores

6. Defining strategy
Several factors require Tax to be convincing in its business case for change.
Tax needs to:
Ensure a clear vision and strategy
Identify objectives
Measure how well it is accomplishing.
Measure
Identify objectives
Clear strategy

7. Defining strategy (continued) What is a tax strategy and why is it important?
What do we mean by strategy?
Strategy refers to how the organization manages its tax affairs and responsibilities.
Key aspects of tax strategy include:
Stakeholders
Tax cost and tax risk
Approach and responsibility
Key performance indicators
A clear strategy and vision, supported by a well-articulated business case, are essential to gaining leadership support and funding to implement solutions.

8. Tax function of the future
Business case basics

9. What is a business case?
A business case is a well articulated argument intended to influence key stakeholders and decision makers towards a desired solution or action.
A business case seeks to secure necessary funding, and articulate a clear path to an attractive return on investment.

10. Attributes of a complete business case
A business case should include:
Project overview
Strategic objectives and critical success factors
Project outputs and business outcomes
Project strategy and implementation approach
Comparison of alternatives
Stakeholders and responsibilities
Dependencies
Cost considerations
Project risks and key assumptions

11. Tax function of the future
Quantifying and presenting a successful business case

12. Quantifying the business case
Benefit
Reduce compliance hours and cost for preparatory tasks
Increase capacity to execute on the overall tax strategy
Cross train, hire, and retain key staff and reduce staff augmentation costs
Eliminate software costs & other recurring expenses
Identification of tax saving opportunities
Cost
Decreased risk of penalties, overpayment of estimated tax liability
Reduced third party service provider costs

13. Business case examples

14. Presenting the business case
Stakeholders
Business partnering
Strong leadership
Communication
Clear messaging
Technology
Moderator (Michelle) to present the topic for discussion: -
How does having a multi-year roadmap help in delivering the business case?
Respondent: Joel
Michelle to add commentary on summarizing the key take-a-ways for presenting the business case.
Michelle will also present the final polling question.
Deliver to Tax’s key internal stakeholders
Confirm buy-in from other functions in the organization
Ensure all parties understand and support the change
Articulate the business case clearly and succinctly
Deliver with strong leadership, business partnering and communication skills
Use technology that reflects tax data in a dynamic and engaging manner

15. Wrap up
Moderator (Michelle) to conclude and summarize discussion and reinforce primary take away point for TFotF Paper #6

16. Tax function of the future series
Our predictions in the series cover six main areas:
Legislative and regulatory environment
Risk management and governance
Data
Technology
Process
People
The series:
Previous Topics
Part 1 – Reshaping the Tax Function of the Future: Predictions and insights
Part 2 – Global tax transparency and risk management
Part 3 – Unlocking the power of data and analytics
Part 4 – Tax as a critical component in every Finance transformation effort
Part 5 – Driving value through tax reporting
Part 6 – Building the business case for change
To download our publications in the Tax Function of the Future series visit:
pwc.com/us/taxfunctionofthefuture
December release
Part 7 – Workflow, Document Management and Collaboration

17. PwC Tax wants to hear from you…
How would you build a business case for tax transformation?
Tweet at us using the hashtag #FutureofTax
Follow us on LinkedIn
@PwC_Tax
PwC LLP

18. Thank you
Ann Marie Achille Partner, Tax Reporting & Strategy (312)
Follow me on Twitter & LinkedIn
Daryl Sherred Director, Tax Reporting and Strategy (412)
Follow me on Twitter & LinkedIn
@Daryl_Sherred
#FutureOfTax
#TaxIsSexy
This document is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
This document was not intended or written to be used, and it cannot be used, for the purpose of avoiding US federal, state or local tax penalties.
© 2016 PwC. All rights reserved. In this document, "PwC" refers to PricewaterhouseCoopers LLP, a Delaware limited liability partnership, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.