Wayne DickinsonSenior Tax Manager

Agenda

• Practical issues around year end reporting and calculation processes in Industry

• The importance of the effective tax rate to stakeholders

• The impact of the public debate on tax reporting and disclosures

Projects

ReportingCompliance

Year End Process

Review/Follow Up

Year End ProcessInformation in Calculation Process Delivery

ForecastBusiness Knowledge Tax Profile

Year End Process

Forecast

Business Knowledge Tax Profile

Year End Process

• Identify stakeholders• Set expectations and stick to them• Preparation is key

Year End ProcessInformation in

Year End Process

• Preparation– Working papers– Accounting records– Tax issues identified– Tax team briefed

• Excel v software?• Time for calculation• Controls/logic check• Overseas operations

Year End ProcessCalculation/Process

Year End Process

• Preparation• Challenges: forecast assumptions wrong (!)• Provisions/risks

Delivery

Year End Process

• Auditor management• Stakeholder management• Communication

Summary

Year End Process

• Stakeholders• Finalise workings• Journal push down

Review/Follow Up

Stakeholders

CFO

CEO

Auditors

Analysts

Banks

Public

Press

Lobbyists

MP’s

PAC

Employees

Inv RelPR

TAX EVASION

Efforts to evade taxes by illegal

means

Commonly found through false

declarations to tax authorities

Legal use of the tax regime to one’s own advantage

Reduce tax liability within the law

TAX AVOIDANCE -v-

“People work hard, they pay their taxes, they save up to go to one of his shows. They buy their tickets. He is taking the money from those tickets and he, as far as I can see, is putting all of that into some very dodgy tax avoiding schemes”David Cameron

Public Accounts Committee

Retailers in the Spotlight

Lobbying

Other Headlines

Tax, Lies and VideotapeBBC One 16th Sept 2013

Vodafone: No UK tax to pay on £84bn saleRobert Peston – BBC

news website, 1st Sept 2013

Mobile group Three taps large tax

creditDaniel Thomas and Vanessa Houlder – FT, 18th Sept 2013

Beanie Babies’ owner pleads guilty to tax

evasionKara Scannell, BBC news website,

19th Sept 2013

“The poll suggested public opinion continues to strengthen against the tax strategies of multinationals. Eighty-four per cent of those polled expressed anger at multinationals avoiding tax, up from 80 per cent in an earlier ComRes poll for Christian Aid in February.”

Vanessa Houlder, FT, 25th August 2013

A director’s duty ..... Is not a duty to avoid tax”

Farrer & Co Opinion, 7th June 2013

Other Activity

• Base Erosion & Profit Shifting– European focus driven by political and public scrutiny during

the recession– Consensus that to act alone could damage competitiveness

has led to support for OECD’s coordination role– Public consultation 12/13 November: common template for

country by country reporting of high level information to tax authorities

• CBI statement of principles setting out good practice in disclosure

• UK GAAR

Market Place Reactions

Overseas Havens Enhanced Tax Disclosures on Tax Contributions

Financing Arrangements Corporate Responsibility

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Publication of Tax Strategy and Tax Governance

Disclosure of Tax Contribution

Enhanced UK Tax Reconciliation

Country by Country Reporting

Total Taxes PaidCorporation Tax £X (Y

%)

Customs duties £X (Y%)

Employers NIC £X (Y%)

Other Taxes £X (Y%)

Business Rates £X (Y%)

PAYE £X (Y%)

Employees NIC £X (Y%)

VAT £X (Y%)

Excise Duties £X (Y%)

22

23

Publication of Tax Strategy and Tax Governance

Disclosure of Tax Contribution

Enhanced UK Tax Reconciliation

Country by Country Reporting

24

Summary

• Practical issues around year end reporting and calculation processes in Industry

• The importance of the effective tax rate to stakeholders

• The impact of the public debate on tax reporting and disclosures

25

Thank You !

Any Questions?