Strategic Tax Function Organization: Improving Efficiency and Transparency

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

2. Effective Are we doing the right things?

3. 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 Consolidate existing assets Expand into adjacent markets Accelerate growth existing processes Strategic actions Primary listing LSE Licenses Acquisitions Provide career opportunities Tax actions Tax Filing Be compliant Manage tax accounting Avoid business disruptions Manage cash repatriation Stable and predictable ETR Implement a Tax Control Framework

4. The four faces of a tax Executive Which face suits you best? Stimulate action across the organisation to achieve strategic and financial goals Provide financial leadership in determining strategic direction and align financial strategies • Execute strategic choices • Alignment of commercial and tax strategies Protect and preserve the assets of the organisation Balance costs and service levels to fulfil responsibilities • Benchmarking • Leverage technology • Execute Finance Transformation • Accurate and timely compliance • Accurate and timely reporting – both for management and externally • Effective engagement with tax authorities and audit defence • Risk management

5. Governance Locating tax department roles and responsibilities

6. Efficient Are we doing the things right?

7. Efficient Towards an integrated tax lifecycle enabled by tax technology Tax Function Cash Management & Forecasting (Treasury) Information Reporting Income Tax Compliance Audit Management Global Mobility Transfer Pricing Business Partnering Lobbying Indirect Tax Provision Planning Tax function responsibilities

8. Tax technology infrastructure The available infrastructure can be overwhelming

9. Transparent Do we have proper control and accountability information?

10. 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

11. Tax transparency initiatives Tax transparency is developing at high speed

12. Tax transparency initiatives Tax transparency is developing at high speed

13. 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.

14. 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.* * Source: Deloitte Responsible tax: Tax transparency developments in 2014

15. Value added How toaddvalueto the business?

16. Value added • Cost savings • (for example: standardization/ automation) • Data quality • Data analytics • (for example: VAT) • Connection with the business • (for example: transaction planning with the business)