Securing tomorrow
today Meeting strategic tax
goals through a
transformational
outsource model
Peter Hordijk – Unilever
Jan van Trigt – Deloitte Netherlands
Sandra Winkster – Deloitte Netherlands
• Introduction
• Unilever’s tax vision on outsourcing and future state 3
• How to scope the outsourcing RFP 7
• How to partner with the service provider when drafting an agreement 11
• The partnership in day-to-day operation 14
• The pros and cons of a central vs. decentralised approach 19
• Expectations from country by country reporting 21
Contents
Unilever’s tax
vision on
outsourcing and
future state
• FTE reduction
• Globalisation of the Tax department
• ETS strategy on finance transformation
Starting from a clear understanding of Unilever’s
vision on outsourcing
Unilever’s desired future state of the tax function
How to scope the
outsourcing RFP
How to scope the outsourcing RFP
• Strategy, vision and prioritised objectives
• Detailed knowledge of current operations: organisation, tax processes and activities, data flows, systems used, information required, master data status, legal entities and entity complexities
• Future operating model and governance model: Scope, requirements and gaps to address
• Current and future cost model: Understanding of current baseline costs, projected ongoing outsourcing and retained organisation costs, projected one-off costs and targeted savings
• Qualitative benefit analysis
• Risks, challenges and dependencies
RFP readiness
How to scope the outsourcing RFP (cont’d)
• Feasibility survey
• Business case arms and legs
• ETS strategy on finance transformation
Country overview
How to scope the outsourcing RFP (cont’d)
• Retained organisation
• Cooperation with finance
How to partner
when drafting an
agreement
How to deal with sensitivities regarding potentially
affected people
• EU culture vs. US culture
• Transfer of Undertakings (Protection of Employment) Regulations (TUPE)
• Workers Council
How to deal with sensitivities
• Clear vision on process from long list to short list
• Fine tuning scoping
• Relationship with Unilever's procurement department
• Legal discussions and legal department relationship between Unilever and Deloitte
The partnership
in day-to-day
operation
Day-to-day governance
• Governance structure
• Role EMO
Day-to-day governance (cont’d)
• Local contracting
Day-to-day governance (cont’d)
• Deloitte Tax Insight management system (DTi)
How does the triangle of finance, tax and service
provider work smoothly together
• Quality improvements with joint common interest
• Direct contacts: one efficient data gathering
• Level of ERP automation
Deloitte
Unilever Tax
Partner-ship
Unilever Finance
The pros and
cons of a central
vs. de-centralised
approach
What are the pros and cons of a central vs.
de-centralised approach
• Globalisation of the tax function
• Link with ES/ETS strategy
• Local vs. central contracting
• Local statement of work
Expectations
from country-by-
country reporting
What impact is expected from per country reporting?
• No permanent establishments
• DTi management system
• Impact on ERP / SAP
• Impact of this type of legislation on globalisation of tax department
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