Transforming Tax Challenges into Competitive Advantage at Nestle
Friday, October 17th, 2008 by Tax 2.0Tax 2.0 asks Michael Davis, Vice President, Nestle to provide his thoughts on how performance enhancements in the tax department can add strategic value to the business.
Do you expect the impact of compliance to increase over the next five years?
There is no doubt about it – it will increase! The government is asking better questions and using technology more effectively. This will require tax groups to raise their game.
How does your department address the issue of growing compliance?
It’s kind of like a four-legged stool, with the different legs being leadership, tax talent, technology, and immediate access to information. If you don’t have all of the legs working together, it will fall down.
How is the burden of compliance impacting the talent shortage?
Recruiting and retaining the right talent is one of the biggest challenges for any tax leader. Tax professionals are seeking an environment where they have the proper tools, access to tax and financial data, and the relationships necessary to meet their responsibilities in the most efficient way. The ultimate goal for these professionals is to get more involved in planning and audit controversy. That’s where tax professionals can make the greatest contribution.
What kind of talent are you looking to attract?
Most people are, at best, tax “renovators” and focus on reducing the amount of time to complete processes, when what we really need is to innovate and engage in strategic planning. At Nestle, we have a world-class talent machine that thrives in a performance culture. You need to grow and challenge your people. I believe that one tax content innovator can exceed the contribution of 10 tax renovators.
How important is communication to the effectiveness of your tax department?
Communication between the business unit and tax content providers is critical. It’s important for tax to be integrated into the business unit and to share the knowledge to deliver timely, value-added tax information that can be used in the decision-making process.
Does technology play a role in your ability to differentiate?
Absolutely. At Nestle, it’s about choosing the right technology that empowers us to maximize the use of our tax content. Technology should enable you to deliver more tax content, or deliver the same tax content in less time, which would then permit your tax team to provide additional value-added services. It also assists in attracting and retaining the best tax professionals.
