Strategizing Multinational Tax Risks

KPMG’s Chief Tax Officer (CTO) Insights provides Best Practices for improving relations with key stakeholders, including sample metrics that are a valuable working tool.

Click to access CTO_%20Insights_Issue%20Spotlight_Oct15.pdf

Key points:

• Regularly scheduled meetings should be scheduled.
• Individualized dashboards should be presented for different stakeholders.
• A Tax Value Report should be presented once or twice a year, including important metrics as cash tax savings, cash flow processes and people initiatives.
• An on-boarding program for new stakeholders should be developed.
• Sample metrics may include
  • Number of audits
  • Tax rates/effective tax rates/cash tax rates– Benchmarks relative to peers

    – Country-specific for global operations

  • Various internal measures regarding risk management
  • Provision-to-return changes
  • Tax exposures and tax opportunities
  • Partnering with the business

  Similar to a tax risk framework that is shared with the larger business and finance leaders, a CTO’s Best Practice tools provide win-win opportunities to interact with key stakeholders and provide assurance for the importance, and recognition, of the tax function in a multinational organizaiton.