Global Tax Compliance Outsourcing Governance Strategy in Light of European Audit Reform

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Abel Maximilian Lucas
5 years ago
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1 Global Tax Compliance Outsourcing Governance Strategy in Light of European Audit Reform 1

About Baker Tilly International Great Firms, Outstanding Network Baker Tilly International is one of the world's leading networks of independently owned and managed accountancy and business advisory

2 About Baker Tilly International Great Firms, Outstanding Network Baker Tilly International is one of the world's leading networks of independently owned and managed accountancy and business advisory firms united by a commitment to provide exceptional client service. Every day, 27,000 people in 133 countries share experiences and expertise to help privately held businesses and public interest entities meet challenges and proactively respond to opportunities. International capability and global consistency of service are central to the way we work. For more information visit 2

3 Introduction From market trends, it increasingly becomes apparent that the historic approach of dealing with tax compliance (ie purely filing returns with the tax authorities) no longer fits multinational organisations. The combination of evolving business models, an increasingly complex regulatory landscape as well as an increased demand for control and effective tax risk management, results in executives challenging their tax directors to achieve more with less. At the same time jurisdictions at all levels aggressively pursue tax revenue, applying greater scrutiny to tax reporting as well as to major transactions. From market surveys it has become evident that more than half of multinational companies have recently experienced unexpected tax audits, of which a large part received unexpected tax assessments or penalties. Often these events result in business interruptions as well. Adding to the considerations is the EU Regulation No. 537/2014 on auditor independence, implying that as of 17 June 2016 the auditor will no longer be allowed to provide certain non-audit services to clients classified as Public-Interest Entities (PIE), (being listed entities on a regulated market, credit institutions, insurance undertakings and entities designated by Member States as a PIE) in any EU country. This means that a large number of EU multinational organisations need to appoint a new auditor and / or a new service provider for tax services, such as tax compliance services. It can also be anticipated that a large number of medium-sized organisations not covered by this EU Regulation will adhere to the new rules as a matter of good corporate governance leading to the same effect. 3

This can be summarised and depicted as follows: Limited governance local execution Others

4 Current Structure Currently, a large number of multinationals organisations are in a rudimentary tax compliance set-up. This can be summarised and depicted as follows: Limited governance local execution Others are somewhat more developed, however, the structure is difficult to manage as follows: Limited visibility, various service providers and lack of risk management 4

This set-up is as follows: Formal governance, one single

5 Future Structure The best options for most multinational companies is a model with a structured approach. This set-up is as follows: Formal governance, one single service provider and standardisation of service level expectation 5

Collaboration Through Huddle Although in essence our service proposition remains a people business, through our state of the art web-based collaboration portal, Huddle, our clients as well as our

6 Collaboration Through Huddle Although in essence our service proposition remains a people business, through our state of the art web-based collaboration portal, Huddle, our clients as well as our client teams have 24/7 access to all relevant know-how and data, significantly enhancing our service level and effectiveness. The benefits of the Huddle tool can be summarised as follows: File sharing and task management Seamless collaboration anytime, anywhere on any device Managing projects efficiently Centralised storage helps risk management. 6

What Do We Have To Offer? The Baker Tilly International network has a global infrastructure with local expertise enabling the delivery of efficient and timely compliance services.

7 What Do We Have To Offer? The Baker Tilly International network has a global infrastructure with local expertise enabling the delivery of efficient and timely compliance services. Our independent member firms have expertise in almost 140 countries and a collaboration portal Huddle, which will give you control, helping compliance with local obligations through global governance, consistent service reporting, formal change management and budgetary transparency. Global visibility of your tax data across the process will allow you to drive value, generating planning ideas and deliver increased value to your business. Within our value proposition, we offer multinational organisations: Branding: Collaboration: Consistency: Position: Through our tailored, client branded, state of the art collaboration tool, in combination with a single point of contact, it will be possible to have 24/7 access to all relevant information Through our services time can be freed up for proactive planning by having non-core, non-value-add processes managed by us Through our approach it is possible to have a global picture of the international tax position and processes at any time, from anywhere We can provide proactive central management and coordination of international tax activities Benefits Of Our Approach The benefits of our approach can be summarised as follows: Single point of contact for streamlined processes and controls Increased compliance with filing deadlines Real time visibility through a state of the art collaboration portal Helping identify tax planning opportunities Efficient engagement management processes Value for money by means of the best price in the market 7

8 Contacts Below are the contact details for the Baker Tilly International contacts who can evaluate specific requirements and ensure a tailored team is brought together to meet business needs: Baker Tilly Roelfs Steuerberatungsgesellschaft mbh Nymphenburger Str. 3b München Deutschland Ines Paucksch Partner Tax Consultant / German CPA T: F: ines.paucksch@bakertilly.de Alternatively, to locate your nearest member firm visit Global Office Juxon House 100 St Paul s Churchyard London EC4M 8BU United Kingdom T: +44 (0) F: +44 (0) info@bakertillyinternational.com Baker Tilly International Limited, all rights reserved Baker Tilly is the trademark Baker Tilly UK Group LLP, used under licence Baker Tilly International is a worldwide network of independent accounting and business advisory firms united by a commitment to provide exceptional client service. Baker Tilly International provides no professional services to clients but acts as a member services organisation. Baker Tilly International Limited is a company limited by guarantee and is registered in England and Wales. 8

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