Objectives Strategic objectives per role
All corporate To ensure that company To set clear, accessible
departments are complies with indirect and workable policies,
well informed tax laws standards, manuals and
and/or have the Filing of all required guidelines endorsing
availability of a indirect tax reporting, company's culture
VAT work including preparation of To ensure that group
instruction so it proper support files: companies act
is clear when to o Reduce consistently globally and
consult the unanticipated benefit from best
indirect tax risks practices applied by
department. o Avoiding other group companies.
penalties for late To create and raise
filing awareness on indirect
o Review indirect tax policies, indirect tax
tax assessments: risks and changes in
o Ascertaining that laws & regulations
appropriate
action is taken
before the
deadline passes
o Apply proper
cash
management
Tax audits:
o Optimize the tax
audit process
o Limit the duration
of tax audits
Assist and support local
operating companies:
o Ensure that local
operating
companies
benefit from the
skills and
expertise of the
Indirect Tax
function
Proactively To ensure that To ensure that the tax
anticipate on Company’s indirect tax position is properly
changes in the position is properly reflected indirect tax
business and reflected in its indirect provision
outside the tax provision Ascertaining proper IT
business and Perform consolidation of support for ensuring
successfully indirect tax position in efficient, timely and
communicate the financial statements reliable reporting
these changes to and quarterly reporting The degree of
the concerning of the group: automation of the end-to-
departments. o Centralize the end indirect tax process
Furthermore look activity with The percentage of
after a correct indirect tax VAT/GST posting errors
implementation department at (AR and AP)
of these corporate level VAT/GST invoicing
changes. from a errors (e.g., percentage
governance of invoices returned by
perspective suppliers)
o Maintain an The cost of producing an
adequate and invoice
reliable view on
indirect tax
provisioning
o Assist and
support local
operating
companies on
indirect tax
accounting:
o Ensure that local
operating
companies
benefit from the
skills and
expertise of
indirect tax
function
Roles and Tax controversy The number and amount
responsibilities considerations and of penalties paid on
have been requirements are built VAT/GST assessments
determined who into the preparation of The number of
deals with the tax the indirect tax return unanticipated audit
authorities and those responsible challenges/assessments
during an audit for indirect tax from the tax authorities
(announcement) controversy review Limit number of tax
and tax indirect tax returns to questions and duration
authorities verify indirect tax of tax audits
questions and positions are properly The cost of audit
procedures “how disclosed, presented defense (internal and
to act” (e.g. and documented. external)
never provide There is a process for
documents managing indirect tax
without first positions and
making copies) documentation
have been Documentation is
documented and updated throughout the
rolled out. life cycle of an indirect
tax position
Workflow/document
management tool
supports the process
The indirect tax function
seeks proactively to
engage with tax
authorities and tax
policy makers on a
global basis to establish
strong relationships in
all jurisdictions in which
the business operates
Developing a winning
strategy to support an
indirect tax position
requires having clear
insight about your tax
policies and execution,
how the tax authorities
conducts their
examination, anticipate
next moves, etc.
Standard global
processes exist for
indirect tax enquiries
and litigation with
supporting
documentation stored in
a central repository
Identify, To optimize company’s To ascertain proper
recommend and indirect tax position implementation and
successfully Initiate and develop impact of changes in
implement group indirect tax business, laws and
indirect tax planning: regulations on
projects that o Build a implemented tax
assist in competitive and planning
achieving the healthy To ensure minimizing
objectives of the (international) cash tax effects and
indirect tax indirect tax group maximizing tax
department part structure opportunities taking into
of the business o Be pro-active account the group
objectives. and responsive operations and structure
to turn business in case of mergers &
developments acquisitions and
into tax divestures
opportunities The amount of VAT/GST
Assist and support under management in
Business on indirect tax key jurisdictions
planning: Monthly/quarterly
o Ensure that VAT/GST working capital
Business requirements
benefits from the Number of days between
skills and docking and learning
expertise of the customs
Indirect Tax
function
o Ensure that
Business do not
limit the flexibility
of others
Ensure Appoint a strategic How do you
identification, business resource for communicate risks?
select and the maintenance of a How do you want indirect
manage tax risks comprehensive Tax tax to be viewed by
as a basis for Control Framework and management?
indirect tax mitigating areas of How do you think it is
management and Indirect tax exposures viewed?
reporting, To ongoing maintain its
ascertain that master a tax control
unacceptable but framework:
existing tax risks o Ensuring that
are identified and unacceptable
that clear, timely indirect tax risks
communication will be prevented
on tax status, tax o Ensuring that
activities and tax unacceptable
risks takes place. indirect tax risks
will be identified
o Ensuring that
identified indirect
tax risks will be
managed and
mitigated
o Representation
of company
towards
authorities and
regulators, and
lobby groups
o Appoint a
strategic
resource for
representation
and lobbying to
protect and serve
the interests and
culture of
company
Initiate and participate
in:
o Domestic and
international
industry groups
and conferences
o Domestic and
international tax
groups and
conferences
The indirect tax department consists of the right number of tax personnel and the right
level of skills and capabilities to be successful.
