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.
- 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.