Two major things. Firstly, businesses are constantly going through significant change as a result of changing business models, globalisation, operating model changes, etc. and as a result traditional tax departments are having to transform to stay relevant. Clients are wanting to talk about how their tax department should operate, what their sourcing strategy should be, how they can retain visibility and control, and how technology can help them with all of this.
Secondly, regardless of major change, clients are actively looking for methods to enhance the way they deliver tax through the use of technology – particularly with tax authorities becoming more digital, and real time reporting of tax data becoming more of a reality globally. So I am frequently asked how I can help tax departments to access data, cleanse it and get it into a format that is fit for tax purposes in a faster timeframe. Luckily there are so many digital developments in this area that this is easier these days and the tax authority demands are giving tax departments a real business case for change.
Are there any new rules that are causing a real problem?
The EU mandatory disclosure regime rules are the latest regulations that have caused tax departments challenges around financial information for tax purposes. Can they capture the right cross-border transaction information from their systems, and is this consistent with other filings such as country by country reporting requirements? What does the increasing amount of information that they are having to publish and share with tax authorities say about their tax affairs, and is this consistent and reflective of their strategy?
How do you see the tax function evolving over the next five to ten years?
I would expect to see the tax function change considerably in terms of skill sets and focus. With the real time reporting/digital tax authorities agenda picking up pace, there will be less need for people to be doing traditional ‘compliance’ activity and so team members who can understand data from a tax perspective will be key. Adjacent to this is the increasing need to be transparent about the organisation’s tax affairs and for the tax affairs to be more commercially aligned, relying on strong governance to support the appropriate implementation of this strategy. I would expect that tax functions would therefore spend more time engaging with tax authorities on issues and disputes around the transfer pricing and business model agenda but also on ‘pre-dispute’ activity, ensuring as far as possible that they do not end up in a dispute situation by having appropriate operating controls, documentation, etc.
What advice would you give to someone starting out in tax?
Really get interested in the commercial side of what a business is doing. Tax increasingly doesn’t operate in isolation and the best way to align strategy and manage risk is to fully understand the business model. Alongside that, you should have a strong interest in all things technological and digital, as these will be a key part of the delivery of tax. If you are coming into a tax career because you enjoy number crunching, it is unlikely to be the career you think it is!
Finally, you might not know this about me but…
I am big fan of watching Moto GP (motorbike racing) and am happiest when standing at an Italian racetrack watching Valentino Rossi win!
Two major things. Firstly, businesses are constantly going through significant change as a result of changing business models, globalisation, operating model changes, etc. and as a result traditional tax departments are having to transform to stay relevant. Clients are wanting to talk about how their tax department should operate, what their sourcing strategy should be, how they can retain visibility and control, and how technology can help them with all of this.
Secondly, regardless of major change, clients are actively looking for methods to enhance the way they deliver tax through the use of technology – particularly with tax authorities becoming more digital, and real time reporting of tax data becoming more of a reality globally. So I am frequently asked how I can help tax departments to access data, cleanse it and get it into a format that is fit for tax purposes in a faster timeframe. Luckily there are so many digital developments in this area that this is easier these days and the tax authority demands are giving tax departments a real business case for change.
Are there any new rules that are causing a real problem?
The EU mandatory disclosure regime rules are the latest regulations that have caused tax departments challenges around financial information for tax purposes. Can they capture the right cross-border transaction information from their systems, and is this consistent with other filings such as country by country reporting requirements? What does the increasing amount of information that they are having to publish and share with tax authorities say about their tax affairs, and is this consistent and reflective of their strategy?
How do you see the tax function evolving over the next five to ten years?
I would expect to see the tax function change considerably in terms of skill sets and focus. With the real time reporting/digital tax authorities agenda picking up pace, there will be less need for people to be doing traditional ‘compliance’ activity and so team members who can understand data from a tax perspective will be key. Adjacent to this is the increasing need to be transparent about the organisation’s tax affairs and for the tax affairs to be more commercially aligned, relying on strong governance to support the appropriate implementation of this strategy. I would expect that tax functions would therefore spend more time engaging with tax authorities on issues and disputes around the transfer pricing and business model agenda but also on ‘pre-dispute’ activity, ensuring as far as possible that they do not end up in a dispute situation by having appropriate operating controls, documentation, etc.
What advice would you give to someone starting out in tax?
Really get interested in the commercial side of what a business is doing. Tax increasingly doesn’t operate in isolation and the best way to align strategy and manage risk is to fully understand the business model. Alongside that, you should have a strong interest in all things technological and digital, as these will be a key part of the delivery of tax. If you are coming into a tax career because you enjoy number crunching, it is unlikely to be the career you think it is!
Finally, you might not know this about me but…
I am big fan of watching Moto GP (motorbike racing) and am happiest when standing at an Italian racetrack watching Valentino Rossi win!
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