What do you want
The relationship between tax teams and local finance people has always been a special one š¤š. With highs, but also a lot of lows š¢. Do you feel me?
The majority of multinationals adopt a Tax Operating Model that in itself is somehow paradoxical. Indeed, an important chunk of the tax work is delegated toā¦ non-tax people. Whatās more, a significant portion of the required data is sourced from peopleā¦ that donāt give a sh*t about said data š«(excuse my French).
You know what I am talking about. This is about local finance people being a key player in among others tax reporting, tax compliance, and TP documentation (local file) processes. This is also about tax teams sourcing e.g. statutory financials from local finance people that only care about IFRS and USGAAP. Or the sourcing of crucial company secretarial information from legal people that are not that concerned about the quality thereof. Sounds a bit odd if you look at this from a distance, donāt you agree?
It is exactly this paradox that puts a strain on the relationship between tax and certain stakeholders. Tax teams consume tons of data that comes from all corners of the organisation, with different data owners. Tax teams also roll out a myriad of processes in which multiple internal and external stakeholders are involved. Here is the wake-up call: these data owners and stakeholders have different objectives and KPIs from the ones of the tax team. Often, very different ones.
It is only by recognising these differences that tax teams can restore the relationship with their local stakeholders. A relationship that is extremely crucial for the overall success of the tax team and also the overall compliance of the multinational itself. Probably the summer break is a good moment to reflect on thisā¦ and ensure that when the heat is on again, you can get the most out of your collaboration with your local stakeholders!
Pro tip: read our compliance whitepaper to get more inspiration š Rethinking Global Corporate Tax Compliance