What Financial Executives Need to Know About Tax Operations
Norton's experience includes 17 years with Siemen's Medical IT division
running global tax,
treasury, and merger and acquisition functions.
Bob Norton, Chief Income Tax Officer
- Optimizing tax operations can help minimize effective tax rates; maximize tax cash flows; improve tax risk management; and enhance accuracy and speed in tax accounting processes.
- Tax Operations should be fully integrated with finance systems and processes.
- Tax data requirements may include worldwide consolidation by legal entity; multiple ledgers; adjustments between the ledgers; and a tax-friendly chart of accounts.
- Surveys have shown that up to 40% of a tax department’s time is spent looking for data.
- External tax risks include tax law changes, government audits, and accounting standards changes.
- In order to optimize tax operations, many large companies have instituted enterprise-level tax data warehouses that are integrated with their ERP systems.