Tax explaining tax policy to the business

Operationalizing tax policies is not a matter of shouting out loud. You cannot twist any arms. They need to get what’s in it for them. If not, you will fail…

Everything a multinational does has tax implications. Literally, everything. That is why the collective tax awareness in an organization should be continuously increased. The higher the shared understanding, the better the overall compliance levels. As a bonus, there will be higher efficiencies, lower risks, and better company performance. Sounds like a no-brainer, right?

Here are some tips to get started:

• Tax is a people business. Focus on building solid relationships with your stakeholders: the business, local finance, your advisors... Organize (virtual) tax lunches or periodical 30-minute “tax classes for dummies”. Make it fun, get their attention. Use memes 😉;
• Blueprinting your tax strategy including policies is crucial. Ensure that you get executive sponsors and sign off at the highest level;
• Processes are the next step. Continuously invest in process excellence;
• Communicate with context. No context, no buy-in, no game. Let them understand the WHY. Use the right language. Avoid jargon;
• Now we want to move to operationalizing all of this. This is about bringing it into practice, ensure that all stakeholders in the heat of the moment know what is expected. Workflow engines are the preferred supporting tool;
• Double-down on data-readiness. Capture your most important tax data and documents in a structured repository. Unlock intel from it;
• Connect the dots. Ensure that all your tax operations come together and that you can unlock spill-overs between different jobs, like data-readiness for business support, or risk management linked to operationalized processes.

Go for it!

When done right, your stakeholders will appreciate it!