Richard Cornelisse

February | 2012 | Tax Assurance Research

In Indirect Tax Strategic Plan on 04/08/2016 at 6:23 pm

standing

The root cause that indirect tax has a low priority, is most likely a company’s culture, its organizational structure, its overall business processes and maybe a wrong perception of top management.

This follows from this ‘top down’ overview:

  • Executive considering indirect tax not material and a high priority. The low risks evaluation of indirect tax likely results in budget constraints
  • Lack of specific VAT/GST measurable performance goals visible to the CFO
  • Lack of proper prioritization between lower value activities and higher value activities. Indirect Tax function has many competing priorities and insufficient time or resources
  • Historically, the tax function in general focused on other areas, allowing other departments and local offices a free hand to deal with the company’s indirect taxes
  • Finance and Accounting is in the majority considered accountable for Indirect Tax
  • It seems that the indirect tax department is often the last to know what is going on, is forced to be the show stopper when other parts of the business thought they were are ready to ‘go live’

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