Strategic plan

Large companies approach their fiscal strategy as a dynamic framework shaped by internal and external factors. This strategy covers the primary taxes in the company locations and is aligned with the general corporate strategy.

Potential benefits of a documented Indirect Tax Strategy:

• Clarity about risk tolerance in the area of indirect taxes. This clarity facilitates the coordination of opportunities with the broader commercial objectives.
• Improvement of the consistency and efficiency of processes relating to taxes.
• Placement of Indirect Tax on the agenda of important business and financial stakeholders.
• Monitoring and strengthening management in decentralized and foreign locations.
• Identification of opportunities to improve systems, processes and controls.
• Identification of areas where extra resources for indirect tax are necessary.

Preparation and rollout of the plan may include the following:

• Clarification of the scope and objectives of the project. This is the phase in which management considers and enunciates its expectations and risk tolerance.
• Workshop with the Indirect Tax department and important business and financial stakeholders about the general corporate strategy, risk tolerance, stakeholder requirements and indirect tax functions.
• Elaboration, evaluation and establishment of an indirect tax strategy document by the Board of Directors.
• Company-wide rollout of the strategy for better understanding of risk tolerance and acceptable planning.
• Revision of the strategy and documentation and keeping it up-to-date, and reviews of strategy effectiveness.