As tax authorities, most recently Australia and UK, place added focus on a tax risk framework and providing evidence of diligence re: such procedures, it is critical that new financial leaders receive tax risk training upon entering an organization as well as a review on a recurring basis. The training should also be reviewed and updated annually for new developments.
Examples of topics for discussion:
- Beneficial ownership & disclosures (coordinated with Treasury Know Your Customer perspective)
- Permanent Establishment (PE)
- General Anti-Avoidance rules (GAAR)
- Transfer pricing methodologies, internal governance procedures
- Transfer pricing documentation process
- BEPS governance strategies
- Financial statement tax reserve criteria and timing
- Interrelationship of domestic law and double tax treaties
- Tax policy
- Elements of tax risk framework
- Tax audit protocol
- Tax audit methodologies
- Customs / Transfer pricing coordination
- BEPS Country-by-Country report, future trends
The training generally provides additional awareness, thereby mitigating tax risk exposures and providing a win-win opportunity that cascades across the organization.
Negotiation is an art and acquired skill; as such it should be a continuous journey for every tax executive. Negotiation is used by everyone every day, personally and professionally. For example, it can be used to develop a win-win result in cross-functional issues with a geographically diverse team or equally in discussions with tax authorities to concisely explain transfer pricing concepts.
In today’s world of tax subjectivity and controversy, negotiation is a requisite (and often neglected) skill for local, regional and global tax teams, as well as other leaders in the business. Conveying technical tax terms and complicated transactions simply, succinctly and convincingly is a leadership skill that becomes more important as one’s career progresses. Notwithstanding this necessity, negotiation is a skill that is not an integral part of everyone’s development program.
Books, presentations and conferences are focused on negotiation, and I will pass along some tremendous resources I have used that are easy to read and implement daily. It is also fun to see the results! Gerry Spence, a U.S. renowned trial lawyer, has written the following two books for your consideration:
- How to Argue and Win Every Time – At Home, at Work, in Court, Everywhere, Every Day
- Win Every Case: How to Present, Persuade and Prevail – Every Place, Every Time
I highly recommend the above resources, related articles posted herein, and look forward to your ideas on this important leadership topic.
Cover of How to Argue and Win Every Time
Please ensure you, and your teams, have a negotiation goal for 2013!