2008 0326 PPT_-_Best_Practices.pdf - Tax Executives Institute, Inc.

Best Practices - Global Organization Structure for Tax Accounting
Key Themes by Enabler:
• Structure - Carve up the Globe into Tier I, II and III jurisdictions to better manage materiality and
resource allocation.
• Process - Regardless of Tier assignment – always focus on mergers, acquisitions, JV’s and divestitures.
Purchase accounting and related deferred taxes are a major source of material weaknesses in Tax.
• People - Theatre based FAS109 skills to manage the quality of foreign provision data
- Report into the US Tax Function – not the local Controllers Group
- Role requires FAS109 skills and sound knowledge of local tax accounting provisions for Tier I
jurisdictions.
- Outsource technical review in Tier I and II jurisdictions as risk dictates.
• Structure - Shared Service Centers (SSC) & Off-Shoring – most MNC’s have experienced limited
success in leveraging SSC’s for tax accounting but you may get pressure to do so.
• Technology - Must leverage emerging technology for foreign provision data collection – web based tax
reporting packages provide speed and standardization.
• People / Process – Global Tax Accounting Training
- Tax Accounting Manuals are becoming more prevalent.
- Some FAS109 software products have embedded technical training for foreign users (Longview)
Tax Function Effectiveness
PricewaterhouseCoopers
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