driving indirect tax performance

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GLOBAL INDIRECT TAX SERVICES

Driving Indirect Tax Performance A global approach to managing risk and creating value

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1 Driving Indirect Tax Performance

The global rise of indirect tax The development of the Driving Indirect Tax Performance approach has emerged /8558@270�8>;�*<<.<<6.7=�8/�=1.�=;.7-<�27�058+*5�27-2;.,=�=*A�9852,2.<�*7-�9;*,=2,.<�

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Driving Indirect Tax Performance 2

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Indirect Tax: #2<.�8/�27-2;.,=�=*A�The Global G�'�%���$%�;*=.<�

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1 VAT/GST is increasing in importance globally

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2 Finance and tax professionals are very concerned about the management of global VAT/GST risks within their organizations

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3 Significant opportunities to improve bottom line are being missed

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3 Driving Indirect Tax Performance

The global rise of indirect tax continued

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Driving Indirect Tax Performance 4

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5 Driving Indirect Tax Performance

�"��D< approach continued

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Driving Indirect Tax Performance 6

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The potential benefits of having such a common purpose are that business units across an organization should manage indirect tax matters in a consistent manner @12,1�,*7�.7*+5.�,5.*;�,866>72,*=287�@2=1�=*A�*>=18;2=2.<�*7-�8=1.;�<=*4.185-.;<� ;.0*;-270�=1.�+><27.<<�@2-.�27-2;.,=�=*A�9852,2.<�*7-�9;*,=2,.<��=�*�9;*,=2,*5�5.?.5�� having such clarity is essential for the indirect tax function as it should provide ,5*;2=B�87�2<<>.<�<>,1�*<�=1.�*99.=2=.�/8;�;2<4�*7-�@18�1*<�;.<987<2+252=B�@2=127�=1.� +><27.<<�/8;�6*7*0.6.7=�8/�=1.�?*;28><�27-2;.,=�=*A.<��.0�'�%�$%���><=86<� �>=B��$=*69��>=B���A,2<.��>=B���7<>;*7,.�";.62>6�%*A���;..7�%*A.<��

2 Embedded processes Having embedded processes means having common processes and controls 8?.;�27-2;.,=�=*A�;2<4<�@12,1�*;.�2695.6.7=.-�,87<2<=.7=5B�*,;8<<�=1.�+><27.<<�Embedded processes provide greater accountability and responsibility and help =8�627262C.�.;;8;<�27�*�<=*7-*;-2C.-��9;.?.7=*=2?.�6*77.;�%80.=1.;�@2=1� *99;89;2*=.�=.,1785802.<��.6+.--.-�9;8,.<<.<�,*7�9;8?2-.�;8+><=�*<<>;*7,.�=8� *55�<=*4.185-.;<�=1*=�27-2;.,=�=*A.<�*;.�+.270�6*7*0.-�.//.,=2?.5B��=�2<�78=� <>//2,2.7=�/8;�9;8,.<<.<�=8�.A2<=�87�9*9.;�H�=1.B�6><=�+.�E.6+.--.-F�@2=127� the daily operations of the organization in order to be effective and help provide =1.�;.:>2;.-�5.?.5�8/�*<<>;*7,.�87�=1.�*,,>;*,B�8/�=1.�;.98;=.-�27-2;.,=�=*A� /20>;.<�

%1.�7..-�/8;�.6+.--.-�9;8,.<<.<�2<�,87<2<=.7=�@2=1�=1.�E%1;..�527.<�8/� �./.7<.F�,8;98;*=.�08?.;7*7,.�;2<4�6*7*0.6.7=�68-.5��@12,1�2<�?.;B�;.5.?*7=� =8�=1.�6*7*0.6.7=�8/�27-2;.,=�=*A�@2=127�5*;0.�8;0*72C*=287<

I� �����"����7=.;7*=287*5��"����7=.;7*=287*5�9;8?2-.<�78�,52.7=�<.;?2,.<�*7-�2<�*�$@2<<�,889.;*=2?.�@2=1�@12,1�=1.�27-.9.7-.7=�6.6+.;�/2;6<�8/�=1.��"���7.=@8;4�*;.�*//252*=.-�

I� �����"����7=.;7*=287*5��"����7=.;7*=287*5�9;8?2-.<�78�,52.7=�<.;?2,.<�*7-�2<�*�$@2<<�,889.;*=2?.�@2=1�@12,1�=1.�27-.9.7-.7=�6.6+.;�/2;6<�8/�=1.��"���7.=@8;4�*;.�*//252*=.-

7 Driving Indirect Tax Performance

�"��D<�approach continued

Successfully implementing appropriate embedded processes is critical in the ,87=.A=�8/�27-2;.,=�=*A�'�%��$%�2<�1.*?25B�;.52*7=�87�=1.�:>*52=B�8/�.6+.--.-�9;8,.<<.<�@2=127�*7�8;0*72C*=287��<�*�;.*5�=26.��=;*7<*,=287�=*A��=1.�:>*52=B�8/�.A.,>=287�87�*�-*25B�+*<2<�+B�*55�+><27.<<�>72=<�2<�,;2=2,*5��+8=1�27�=.;6<�8/�*,12.?270�*,,>;*,B�*7-�27�=1.�9.;,.9=287�8/�=1.�:>*52=B�8/�=1.�'�%���$%�,86952*7,.�9;8,.<<�%*4.��/8;�.A*695.��=1;..�4.B�+><27.<<�9;8,.<<.<��7*6.5B�!;-.;�=8��*<1��">;,1*<.�=8�"*B�*7-�#.,8;-�=8�#.98;=��,12.?270�.A.,>=287�excellence in relation to each of these processes is fundamental to the three key '�%���$%�,86952*7,.�8+520*=287<��7*6.5B�,8;;.,=7.<<�8/�8>=9>=�'�%�$%�9*B*+5.��,8;;.,=7.<<�8/�279>=�'�%�$%�-.->,=2+5.�*7-�,8;;.,=7.<<�8/�'�%���$%�;.=>;7�;.98;=270��7<>;270�=1.�1201.<=�:>*52=B�8/�.6+.--.-�9;8,.<<.<�27�.*,1�8/�=1.<.�,;2=2,*5�+><27.<<�9;8,.<<.<�,*7�78=�+.�>7-.;.<=26*=.-�H�@1.7�B8>�,87<2-.;�=1*=�=1.�*?.;*0.�*77>*5�'�%��$%�E=1;8>019>=F�8/�6*7B�6>5=27*=287*5�8;0*72C*=287<�2<�6.*<>;.-�27�=1.�=.7<�8/�+255287<��@12,1�2<�0.7.;*55B�*�?.;B�<2072/2,*7=�6>5=295.�8/�=1.�,8;98;*=.�27,86.�=*A�52*+252=2.<�8/�=1.�8;0*72C*=287�

3 High performing teams �*?270�*�1201�9.;/8;6270�27-2;.,=�=*A�=.*6�6.*7<�1*?270�*�=.*6�@12,1�;.,8072C.<�2=<�;85.�@2=127�=1.�8;0*72C*=287��1*<�=1.�;.:>2;.-�5.?.5�8/�=.,172,*5��6*7*0.6.7=�*7-�8=1.;�<4255<�*7-�2<�*99;89;2*=.5B�=;*27.-��68=2?*=.-�*7-�;.@*;-.-�

!7.�8/�=1.�68<=�<2072/2,*7=�2<<>.<�27�6*7*0270�27-2;.,=�=*A�/8;�*55�+><27.<<.<�2<�=1*=�;.<987<2+252=B�2<�-2<9.;<.-�=1;8>018>=�=1.�8;0*72C*=287��*7*0.6.7=�*7-�<=*//�27�*�-2?.;<.�;*70.�8/�+><27.<<�>72=<��<>,1�*<�<*5.<���6*;4.=270���%��5802<=2,<��/27*7,.�*7-�*-6272<=;*=287�*55�,87=;2+>=.�27�*�6*=.;2*5�@*B�=8�=1.�.7=2;.�.7-�=8�.7-�27-2;.,=�=*A�,86952*7,.�9;8,.<<�

%12<�+><27.<<�@2-.�=.*6�8/�9.895.�@18�27/5>.7,.�=1.�27-2;.,=�=*A�,86952*7,.�9;8,.<<�,*7�+.�,*55.-�=1.�E<1*-8@�27-2;.,=�=*A�=.*6F��*?270�*�1201�9.;/8;6270�<1*-8@�27-2;.,=�=*A�=.*6�2<�,;2=2,*5�=8�=1.�8?.;*55�8+3.,=2?.�8/�.//.,=2?.5B�*7-�.//2,2.7=5B�6*7*0270�27-2;.,=�=*A�@2=127�*7�8;0*72C*=287��.*7<�8/�*,12.?270�=12<�@255�524.5B�?*;B�/;86�87.�8;0*72C*=287�=8�*78=1.;��*5=18>01�98=.7=2*5�<=;*=.02.<�27,5>-.�-2<9.;<270�27-2;.,=�=*A�9;8/.<<287*5<�=1;8>018>=�=1.�8;0*72C*=287�8;�;.8;0*72C270�=1.�@8;4�8/�=1.�,.7=;*5�27-2;.,=�=*A�/>7,=287�=8�;.5.*<.�;.<8>;,.<�*558@270�<.728;�9.895.�=8�@8;4�6>,1�68;.�,58<.5B�@2=1�,855.*0>.<�.5<.@1.;.�27�=1.�+><27.<<�

�*?270�*�1201�9.;/8;6270�=.*6�*5<8�;.:>2;.<�*�1201�:>*52=B�9;80;*6�8/�=;*27270�*7-�-.?.5896.7=�/8;�*55�27-2;.,=�=*A�9;8/.<<287*5<�*7-�<1*-8@�27-2;.,=�=*A�=.*6<�%12<�9;80;*6�@255�524.5B�;.:>2;.�27-2;.,=�=*A�9;8/.<<287*5<�=8�*,:>2;.�7.@�<4255<�*7-�78=�875B�/8,><�87�=.,172,*5�,869.=.7,.�+>=�87�<8/=.;�<4255<�<>,1�*<�.//.,=2?.�,866>72,*=287��7.08=2*=287�*7-�9.;<>*<287�

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I� �����"����7=.;7*=287*5��"����7=.;7*=287*5�9;8?2-.<�78�,52.7=�<.;?2,.<�*7-�2<�*�$@2<<�,889.;*=2?.�@2=1�@12,1�=1.�27-.9.7-.7=�6.6+.;�/2;6<�8/�=1.��"���7.=@8;4�*;.�*//252*=.-

Driving Indirect Tax Performance 8

%885<�*7-��.=18-85802.<�H����27.<�8/��./.7<. %1.����27.<�8/��./.7<.�2<�*�,8;98;*=.�08?.;7*7,.�model recognized by the FSA and has been *-89=.-�+B�*�5*;0.�7>6+.;�8/��%$������*7-�058+*5�6>5=27*=287*5<�

%1.�%1;..��27.<�8/��./.7<.�68-.5�2<�*�/;*6.@8;4�/8;�.//.,=2?.�;2<4�6*7*0.6.7=�=1*=�2<�27,;.*<2705B�+.270�*9952.-�=8�=*A��=�8//.;<�,5.*;�0>2-*7,.�87�;85.<��;.<987<2+252=2.<�*7-�.//.,=2?.�8?.;<201=�*;;*70.6.7=<�*=�.*,1�<=*0.�27�=1.�6*7*0.6.7=�9;8,.<<�

I� �����"����7=.;7*=287*5��"����7=.;7*=287*5�9;8?2-.<�78�,52.7=�<.;?2,.<�*7-�2<�*�$@2<<�,889.;*=2?.�@2=1�@12,1�=1.�27-.9.7-.7=�6.6+.;�/2;6<�8/�=1.��"���7.=@8;4�*;.�*//252*=.-�

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9 Driving Indirect Tax Performance

�"��D<�approach continued

4 Timely and accurate information Having timely and accurate information means more than simply having the correct '�%���$%�27/8;6*=287�27�=26.�=8�6..=�,86952*7,.�-.*-527.<��=�*5<8�6.*7<�1*?270�,87/2-.7,.�27�=1.�>7-.;5B270�/27*7,2*5�27/8;6*=287�87�@12,1�'�%���$%�;.=>;7<�*;.�+*<.-�%12<�,*7�9;8?2-.�=1.�27-2;.,=�=*A�/>7,=287�@2=1�=1.�*+252=B�=8�627262C.�787�productive time seeking to obtain and verify data and frees up time and resources =8�/8,><�87�?*5>.�,;.*=287�272=2*=2?.<�

Having confidence in the accuracy and timeliness of the information also provides a ;8+><=�<=*;=270�9827=�27�;.5*=287�=8�=1.�1*7-5270�8/�=*A�*>=18;2=B�*>-2=<�(1.7�,86+27.-�@2=1�=1.�*+252=B�=8�-.687<=;*=.�=1.�.A2<=.7,.�8/�=1.�,8;;.,=�.6+.--.-�9;8,.<<.<��=12<�,*7�0;.*=5B�*<<2<=�27�:>2,45B�9;8?2-270�*<<>;*7,.�=8�=*A�*>=18;2=2.<�*7-�8=1.;�<=*4.185-.;<�;.0*;-270�=1.�*,,>;*,B�8/�'�%���$%�;.98;=270�

!/�,8>;<.��*,12.?270�=26.5B�*7-�*,,>;*=.�27/8;6*=287�2<�.*<2.;�<*2-�=1*7�-87.��=�;.:>2;.<�*7�*0;..-�+><27.<<�@2-.�9;8,.<<�8/�2-.7=2/2,*=287�8/�=*A�27/8;6*=287�;.:>2;.6.7=<�*7-�,5.*;�;.<987<2+252=2.<�*7-�=26.527.<�/8;�9;.9*;*=287�*7-�-.52?.;B�8/�=1*=�27/8;6*=287�%1.�><.�8/�*99;89;2*=.�=.,1785802.<�,*7�0;.*=5B�*<<2<=�27�=12<�9;8,.<<��*=�.*,1�9827=�/;86�8;2027*5�-*=*�,*9=>;.�=8�.//2,2.7=�;.98;=270�6.=18-85802.<�

5 Enabling technologies Enabling technologies means developing and implementing indirect tax information <B<=.6<�@12,1�*;.�27=.0;*=.-�27=8�=1.�/27*7,2*5�*7-�8=1.;�;.98;=270�<B<=.6<�8/�=1.�+><27.<<�#*=1.;�=1*7�;.5B270�.A,5><2?.5B�87�=;*-2=287*5�6.*7<�8/�9;8->,270�27-2;.,=�=*A�27/8;6*=287��7.@�=.,1785802.<�,*7�+.�.6958B.-�=8�9;8?2-.�68;.�;8+><=��,8<=�.//.,=2?.�*7-�*>-2=*+5.�27/8;6*=287�

%1.;.�*;.�6*7B�.A*695.<�8/�18@�=.,178580B�,*7�+.�.7*+5.-�27�*7�27-2;.,=�=*A�,87=.A=��2;<=5B��-.<207270��#"�<B<=.6<�=8�9;8?2-.�=1.�7.,.<<*;B�27-2;.,=�=*A�-*=*�*7-�/>7,=287*52=B�2<�27,;.*<2705B�2698;=*7=�/8;�058+*5��9;8,.<<�-;2?.7�8;0*72C*=287<�!=1.;�*;.*<�@1.;.�technology can be deployed effectively and efficiently include automating indirect tax -.,2<287<��,86952*7,.�6*7*0.6.7=�9;8,.<<.<��478@5.-0.�6*7*0.6.7=�95*=/8;6<�*7-�.5.*;7270�=885<�

�,478@5.-0270�=1.�8998;=>72=2.<�@12,1�.6.;0270�=.,1785802.<�9;.<.7=���"���1*<�-.?.589.-�*�;*70.�8/�=.,178580B�=885<�@12,1�,*7�+.�-.958B.-�=8�.//.,=2?.5B�*7-�.//2,2.7=5B�6*7*0.�27-2;.,=�=*A�8+520*=287<��A*695.<�27,5>-.��"��D<�87527.�058+*5�,86952*7,.�6*7*0.6.7=�=885���%�$���8>;��&�'�%�;.=>;7�,869>=*=287�=885��'�%��>+.���*�'�%����%�-*=*�*7*5B<2<�*7-�27=.;;80*=287�=885�*7-�8>;�87527.�058+*5�27-2;.,=�=*A�478@5.-0.�@.+<2=.��@@@4960,8627-2;.,==*A��

I� �����"����7=.;7*=287*5��"����7=.;7*=287*5�9;8?2-.<�78�,52.7=�<.;?2,.<�*7-�2<�*�$@2<<�,889.;*=2?.�@2=1�@12,1�=1.�27-.9.7-.7=�6.6+.;�/2;6<�8/�=1.��"���7.=@8;4�*;.�*//252*=.-�

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Driving Indirect Tax Performance 10

�7*+5270�=.,1785802.<�2<�78=�.A,5><2?.�=8�=*A9*B.;<�H�=*A�*>=18;2=2.<�058+*55B�*;.�*5<8�updating their audit approaches and are adopting standard and bespoke interrogation <8/=@*;.�=8�*<<2<=�27�=1.2;�*>-2=�@8;4��=�2<�,;2=2,*5�=1*=�+><27.<<.<�*;.�9;.9*;.-�/8;�68;.�<8912<=2,*=.-�=*A�*>=18;2=B�*>-2=�=.,172:>.<��;.:>2;270�8708270�*<<.<<6.7=�8/�=1.�E*>-2=*+252=BF�8/�=1.2;�<B<=.6�*7-�9.;28-2,*55B�>7-.;=*4270�<.5/�;.?2.@<�=8�2-.7=2/B�98=.7=2*5�.;;8;<�8;�:>.;2.<�@12,1�6*B�*;2<.�27�=1.�.?.7=�8/�*�=*A�*>=18;2=B�27=.;;80*=287�8/�=1.�<B<=.6�

6 One view of performance !7.�?2.@�8/�9.;/8;6*7,.�6.*7<�=1*=�=1.;.�2<�*�<2705.�+><27.<<�@2-.�27/8;6*=287�<B<=.6�*7-�/;*6.@8;4�+B�@12,1�=8�*<<.<<�2=�%12<�<18>5-�1.59�=8�.52627*=.�=1.�;2<4<�*<<8,2*=.-�@2=1�-2//.;.7=�9*;=<�8/�=1.�+><27.<<�89.;*=270�@2=1�-2//.;.7=�?.;<287<�8/�=1.�<*6.�27/8;6*=287��=�*5<8�9;8?2-.<�*�6.*7<�8/�.?*5>*=270�=1.�27-2;.,=�=*A�/>7,=287��*7-�.?*5>*=270�27-2;.,=�=*A�;2<4<�*7-�-.,2<287<��@12,1�2<�,87<2<=.7=�@2=1�=1.�;.<=�8/�=1.�+><27.<<�

�,12.?270�87.�?2.@�8/�9.;/8;6*7,.�<18>5-�;.<>5=�27�=1.�-.?.5896.7=�8/�,5.*;.;��"�<�/8;�=1.�27-2;.,=�=*A�/>7,=287�*7-�=1.�+><27.<<�0.7.;*55B��7�*�,8;98;*=.�27,86.�=*A�,87=.A=��+><27.<<.<�1*?.�=;*-2=287*55B�6.*<>;.-��"�D<�<>,1�*<�=1.2;�.//.,=2?.�=*A�;*=.�*7-�,*<1�=*A�;*=.��@12,1�,*7�8/=.7�+.�+.7,16*;4.-�*0*27<=�,869.=2=8;<�*7-�27-><=;B�<=*7-*;-<�%8�-*=.��18@.?.;��=1.;.�*;.�5262=.-�.:>2?*5.7=�.A=.;7*5�+.7,16*;4<�/8;�27-2;.,=�=*A�*0*27<=�@12,1�*�,869*7B�,*7�*<<.<<�2=<�27-2;.,=�=*A�9.;/8;6*7,.�

Based on our research undertaken in ���� ��=1.�5.?.5�8/�*@*;.7.<<�8/�=1.�269*,=�8/�'�%���$%�87�+><27.<<.<�2<�?.;B�58@�%@8�<=*=2<=2,<�-.687<=;*=.�=12<�9827=�

�2;<=5B��1*5/�8/�=1.�;.<987-.7=<�27�8>;�<>;?.B�<=*=.-�=1*=�'�%�$%�1*<�78�.//.,=�87�=1.2;�,869*7BD<�,*<1�/58@�%12<�2<�,5.*;5B�78=�=1.�,*<.��*<�+.,86.<�.?2-.7=�@1.7�=1.�=8=*5�'�%�$%�E=1;8>019>=F�8/�*7�*?.;*0.�058+*5�8;0*72C*=287�2<�*7*5BC.-�

$.,87-5B��@1.7�*<4.-�18@�5*;0.�=1.2;�*77>*5�'�%�$%�=1;8>019>=�@*<��8?.;����9.;,.7=�8/�;.<987-.7=<�<*2-�2=�@*<�+.=@..7�&$�� ���6255287�*7-�&$���+255287��*<.-�87�=1.�.?2-.7,.�@12,1�@.�1*?.�;.,.2?.-�/;86�8>;�,52.7=<��=1.<.�/20>;.<�*;.�<2072/2,*7=5B�>7-.;<=*=.-��-.687<=;*=270�.2=1.;�*�5*,4�8/�*@*;.7.<<��5*,4�8/�*99;89;2*=.�27/8;6*=287�8;�*�5*,4�8/�-.<2;.�=8�-;*@�*==.7=287�=8�*7�8998;=>72=B�@12,1�1*<�78=�;.,.2?.-�<>//2,2.7=�/8,><��2=1.;�@*B��2=�2<�,5.*;�=1*=�=1.�-.?.5896.7=�8/�<9.,2/2,��"�D<�/8;�'�%���$%�9.;/8;6*7,.�@8>5-�1.59�=8�/8,><�*==.7=287�87�@1.;.�?*5>.�,*7�+.�,;.*=.-�

�7�=1.8;B��2=�<18>5-�78=�+.�-2//2,>5=�/8;�+><27.<<.<�=8�-.?2<.�*�<B<=.6�=8�6.*<>;.�9.;/8;6*7,.�27�6*7*0.6.7=�8/�27-2;.,=�=*A�,86952*7,.�;2<4�$>,1�*�<B<=.6�@8>5-�6872=8;�9.;/8;6*7,.�27�*;.*<�<>,1�*<�=1.�*77>*5�'�%�$%�*<<.<<6.7=<��9.7*5=2.<�*7-�27=.;.<=�*7-�@8>5-�9;8?2-.�=1.�27-2;.,=�=*A�-.9*;=6.7=�=1.�=*<4�8/�6*4270�-.687<=;*+5.�269;8?.6.7=<�

Based on our research undertaken in �����=1.�5.?.5� 8/�*@*;.7.<<� of the impact 8/�'�%���$%� on businesses 2<�?.;B�58@�

I� �����"����7=.;7*=287*5��"����7=.;7*=287*5�9;8?2-.<�78�,52.7=�<.;?2,.<�*7-�2<�*�$@2<<�,889.;*=2?.�@2=1�@12,1�=1.�27-.9.7-.7=�6.6+.;�/2;6<�8/�=1.��"���7.=@8;4�*;.�*//252*=.-

� �7-2;.,=�%*A*=287�*7-��><27.<<�H����58+*5�".;<9.,=2?.���"����7-2;.,=�%*A�$.;?2,.<�� ���

I� �����"����7=.;7*=287*5��"����7=.;7*=287*5�9;8?2-.<�78�,52.7=�<.;?2,.<�*7-�2<�*�$@2<<�,889.;*=2?.�@2=1�@12,1�=1.�27-.9.7-.7=�6.6+.;�/2;6<�8/�=1.��"���7.=@8;4�*;.�*//252*=.-

11 Driving Indirect Tax Performance

�"��D<�approach continued

�.*<>;270�<>,,.<<�27�,;.*=270�?*5>.�/;86�27-2;.,=�=*A�2<�68;.�-2//2,>5=��18@.?.;��.B�9.;/8;6*7,.�27-2,*=8;<�@12,1�*;.�524.5B�=8�.?85?.�27,5>-.�6.*<>;.6.7=�8/�=;.7-<�27�'�%�$%�+*5*7,.�<1..=�*7-�9;8/2=�*7-�58<<�*,,8>7=�/20>;.<��2-.7=2/2,*=287�8/�=8=*5�+><27.<<�@2-.�2;;.,8?.;*+5.�'�%���$%�*7-�=1.�=8=*5�,8<=�8/�'�%���$%�,86952*7,.�

�.7,16*;4��"�D<�6.*<>;270�=1.�,*<1�/58@�269*,=�87�*�+><27.<<�*;.�*5<8�524.5B�=8�.6.;0.��*5=18>01�=1.B�,*7�?*;B�<2072/2,*7=5B�+*<.-�87�=1.�7*=>;.�8/�=1.�+><27.<<�*7-�=1.�3>;2<-2,=287<�27�@12,1�=1.B�89.;*=.��7=>2=2?.5B�+><27.<<.<�<18>5-�+.�*@*;.�=1*=�*�,*<1�/58@�,8<=�*;2<.<�@1.;.��2��'�%��$%�2<�9*2-�=8�=1.�=*A�*>=18;2=2.<�+./8;.�2=�2<�;.,.2?.-�/;86�=1.�,><=86.;�*7-��22��'�%���$%�2<�9*2-�=8�<>9952.;<�+./8;.�2=�2<�;.,5*26.-�/;86�=1.�=*A�*>=18;2=2.<��8@.?.;��1*?270�*,,8>7=*+252=B�*0*27<=�*�,5.*;�<.=�8/��"�D<�,*7�enable the indirect tax function to focus on improving performance and thus create ?*5>.�/8;�=1.�+><27.<<�

7 Influencing stakeholders The final component of our Driving Indirect Tax Performance model is influencing <=*4.185-.;<�%12<�27?85?.<�=1.�-.?.5896.7=�8/�*�=@8�@*B�,866>72,*=287�9;8,.<<�+.=@..7�=1.�27-2;.,=�=*A�/>7,=287�*7-�=1.�4.B�27=.;7*5�*7-�.A=.;7*5�<=*4.185-.;<�

�7=.;7*5�<=*4.185-.;<�=B92,*55B�27,5>-.�=1.���!��=1.��8*;-�*7-�6.6+.;<�8/�=1.�E<1*-8@�27-2;.,=�=*A�=.*6F� �A=.;7*5�<=*4.185-.;<�=B92,*55B�27,5>-.�<1*;.185-.;<��;.0>5*=8;<��=*A�*>=18;2=2.<��,><=86.;<�*7-�<>9952.;<�

%1.;.�2<�*�0;8@270�*99;.,2*=287�=1*=�=1.;.�2<�*�7..-�/8;�.71*7,.-�?2<2+252=B�*7-�=;*7<9*;.7,B�8/�27-2;.,=�=*A�@2=127�8;0*72C*=287<��7=.;7*5�<=*4.185-.;<�<>,1�*<�=1.���!�and the Board are becomingly increasingly interested in the level of risk and 8998;=>72=B�@12,1�27-2;.,=�=*A�9;.<.7=<��A=.;7*5�<=*4.185-.;<�<>,1�*<�=1.�=*A�*>=18;2=2.<�*;.�+.,86270�68;.�27=.;.<=.-�27�=1.�9;8,.<<�+B�@12,1�5*;0.�8;0*72C*=287<�6*7*0.�=1.2;�27-2;.,=�=*A�,86952*7,.��:>*55B��27-2;.,=�=*A�/>7,=287<�*99;.,2*=.�=1*=�*,12.?270�=1.2;�8+3.,=2?.<��+8=1�/8;�=1.�8;0*72C*=287�*7-�9.;<87*55B��@255�524.5B�;.:>2;.�*--2=287*5�<>998;=�/;86�<.728;�6*7*0.6.7=�=1*7�.A2<=.-�27�=1.�9*<=�

�7�9;*,=2,.��27/5>.7,270�<=*4.185-.;<�;.:>2;.<�,.;=*27�<4255<�@12,1�27-2;.,=�=*A�9;8/.<<287*5<�6*B�78=�=;*-2=287*55B�1*?.�+..7�;.:>2;.-�=8�-.687<=;*=.��8;�.A*695.��5.*;7270�=8�>7-.;<=*7-�*7-�*99;.,2*=.�=1.�-2//.;270��<86.=26.<�,869.=270��8+3.,=2?.<�8/�=1.�?*;28><�<=*4.185-.;<�2<�.<<.7=2*5��5<8��-.?.589270�*�;*998;=�@2=1�4.B�<=*4.185-.;<�;.:>2;.<�<=;870�,866>72,*=287�<4255<�*7-�=1.�*99;89;2*=.�5.?.5�8/�9852=2,*5�<4255�7.,.<<*;B�=8�8+=*27�<=*4.185-.;�,87/2-.7,.�*7-�6*7*0.�=1.2;�.A9.,=*=287<�%1.<.�*;.�<4255<�@12,1�*�1201�9.;/8;6270�27-2;.,=�=*A�=.*6�6><=�-.?.589�=8�+.�<>,,.<</>5�=8-*B�*7-�27=8�=1.�/>=>;.�

I� �����"����7=.;7*=287*5��"����7=.;7*=287*5�9;8?2-.<�78�,52.7=�<.;?2,.<�*7-�2<�*�$@2<<�,889.;*=2?.�@2=1�@12,1�=1.�27-.9.7-.7=�6.6+.;�/2;6<�8/�=1.��"���7.=@8;4�*;.�*//252*=.-�

I� �����"����7=.;7*=287*5��"����7=.;7*=287*5�9;8?2-.<�78�,52.7=�<.;?2,.<�*7-�2<�*�$@2<<�,889.;*=2?.�@2=1�@12,1�=1.�27-.9.7-.7=�6.6+.;�/2;6<�8/�=1.��"���7.=@8;4�*;.�*//252*=.-

Driving Indirect Tax Performance 12

(1*=�-8� ��-8�78@�� Driving Indirect Tax Performance @255�6.*7�-2//.;.7=�=1270<�27�-2//.;.7=�8;0*72C*=287<�

!7.�,86687�272=2*5�=1.6.��18@.?.;��2<�=1*=�*55�8;0*72C*=287<�6><=�accept the need to continuously and critically assess their 9.;/8;6*7,.�27�6*7*0270�27-2;.,=�=*A�;2<4�*7-�,;.*=270�?*5>.�

Having considered the Driving Indirect Tax Performance *99;8*,1��*�7>6+.;�8/�4.B�:>.<=287<�*;.�524.5B�=8�*;2<.�<>,1�*<���

G �8@�2<�27-2;.,=�=*A�6*7*0.-�27�6B�8;0*72C*=287��

G (1*=�*;.�=1.�*;.*<�8/�0;.*=.<=�@.*47.<<�*7-�18@�,*7�=1.B�+.�*--;.<<.-��

G �<�=1.�9;8,.<<�*<�.//2,2.7=�*7-�.//.,=2?.�*<�2=�,8>5-�+.��

G �*<�=1.�9;8,.<<�+..7�>9-*=.-�=8�;./5.,=�+><27.<<�*7-�legislative changes?

G (1*=�?*5>.�,;.*=287�8998;=>72=2.<�*;.�+.270�62<<.-��

G (1*=�*;.�=1.�8+<=*,5.<�=8�269;8?270�27-2;.,=�=*A�performance?

%1.<.�*;.�<86.�8/�=1.�6*7B�:>.<=287<�@12,1�@255��27�8>;�?2.@��-;2?.�=1.�;.:>2;.6.7=�/8;�058+*5�8;0*72C*=287<�=8�<.;28><5B�,87<2-.;�2695.6.7=270�=12<�*99;8*,1�

%8�9;8?2-.�/>;=1.;�*<<2<=*7,.�=8�B8>�27�=12<�9;8,.<<��@.�95*7�=8�9>+52<1�*--2=287*5�*7*5B<2<�87�18@�=1.�Driving Indirect Tax Performance attributes can and are being 2695.6.7=.-�27�9;*,=2,.�*7-�18@�,1*70.<�27�=1.�058+*5�.7?2;876.7=�@255�524.5B�,87=27>.�=8�,1*70.�the nature of the indirect tax management ,1*55.70.�

!>;��"���058+*5�27-2;.,=�=*A�9;8/.<<287*5<�are ready to share their experiences and -2<,><<�@1*=�=12<�*99;8*,1�,*7�-.52?.;�/8;�B8>�*7-�B8>;�8;0*72C*=287�

I� �����"����7=.;7*=287*5��"����7=.;7*=287*5�9;8?2-.<�78�,52.7=�<.;?2,.<�*7-�2<�*�$@2<<�,889.;*=2?.�@2=1�@12,1�=1.�27-.9.7-.7=�6.6+.;�/2;6<�8/�=1.��"���7.=@8;4�*;.�*//252*=.-�

I� �����"����7=.;7*=287*5��"����7=.;7*=287*5�9;8?2-.<�78�,52.7=�<.;?2,.<�*7-�2<�*�$@2<<�,889.;*=2?.�@2=1�@12,1�=1.�27-.9.7-.7=�6.6+.;�/2;6<�8/�=1.��"���7.=@8;4�*;.�*//252*=.-

13 Driving Indirect Tax Performance

KPMG Global Indirect Tax Services Contacts Use the attached contact list to find the appropriate �"��'�% �$% ,87=*,= /8; =1. 3>;2<-2,=287<�27 @12,1 B8>; 8;0*72C*=287 89.;*=.<�� 8=.�� � -.78=.<%;*-. *7- �><=86< <9.,2*52<=<��

I� �����"����7=.;7*=287*5��"����7=.;7*=287*5�9;8?2-.<�78�,52.7=�<.;?2,.<�*7-�2<�*�$@2<<�,889.;*=2?.�@2=1�@12,1�=1.�27-.9.7-.7=�6.6+.;�/2;6<�8/�=1.��"���7.=@8;4�*;.�*//252*=.-�

Driving Indirect Tax Performance 14

KPMG in Argentina Vivian E Monti e-Mail: vmonti@kpmg.com.ar

Eduardo H Crespo* e-Mail: ecrespo@kpmg.com.ar

KPMG in Australia Michael B Evans e-Mail: mbevans@kpmg.com.au

Nick Kallinikios e-Mail: nkallinikios@kpmg.com.au

Phil Renshaw e-Mail: prenshaw@kpmg.com.au

Craig Sloan e-Mail: cjsloan@kpmg.com.au

Fiona Giuseppi e-Mail: ggiuseppi@kpmg.com.au

Patrick Hunt e-Mail: phunt@kpmg.com.au

Deborah A Jenkins e-Mail: dajenkins@kpmg.com.au

Lachlan Wolfers e-Mail: lwolfers@kpmg.com.au

KPMG in Austria Johann Muehlehner e-Mail: jmuehlehner@kpmg.at

Stefan Haslinger e-Mail: shaslinger@kpmg.at

KPMG in Belgium Peter Ackerman e-Mail: packerman1@kpmg.com

Diederik Bogaerts* e-Mail: dbogaerts@kpmg.com

KPMG in Brazil Roberto A Cunha e-Mail: rcunha@kpmg.com.br

Marienne MS Munhoz e-Mail: mmunhoz@kpmg.com.br

KPMG in Bulgaria Kalin Hadjidimov e-Mail: khadjidimov@kpmg.com

Ivan Vargoulev e-Mail: ivargoulev@kpmg.com

KPMG in Canada Deborah J Taylor e-Mail: djtaylor@kpmg.ca

Dave Schlesinger e-Mail: dschlesinger@kpmg.ca

John Bain e-Mail: jbain1@kpmg.ca

Joseph Brick* e-Mail: josephbrick@kpmg.ca

KPMG in Chile Edmundo Soto e-Mail: esoto@kpmgchile.cl

Fernando Leigh* e-Mail: fl eigh@kpmgchile.cl

KPMG in China Khoonming Ho e-Mail: khoonming.ho@kpmg.com.cn

Jean Li e-Mail: mailto:jean.li@kpmg.com.cn

David Ling e-Mail: david.ling@kpmg.com.cn

KPMG in Colombia Juan P Murcia e-Mail: jpmurcia@kpmg.com

Jessica Massy e-Mail: jmassy@kpmg.com.co

KPMG in Croatia Paul Suchar e-Mail: psuchar@kpmg.com

KPMG in Cyprus Harry Charalambous e-Mail: harry.charalambous@kpmg.com.cy

Angelos Gregoriades e-Mail: angelos.gregoriades@kpmg.com.cy

KPMG in Czech Republic Marie Konecna e-Mail: mkonecna@kpmg.cz

KPMG in Denmark Benny Hjortkaer Hansen e-Mail: bhhansen@kpmg.dk

Mette Christina Juul e-Mail: mjuul@kpmg.dk

KPMG in Estonia Joel Zernask e-Mail: jzernask@kpmg.com

KPMG in Finland Juha Sääskilahti e-Mail: juha.saaskilahti@kpmg.fi

Ari Nielsen e-Mail: ari.nielsen@kpmg.fi

Mika Kallio* e-Mail: mika.kallio@kpmg.fi

KPMG in France (FIDAL – Fidal is an independent legal entity that is separate from KPMG International and KPMG member fi rms)

Gwenaelle Bernier e-Mail: gbernier@fi dalinternational.com

Pascal Dewavrin* e-Mail: pdewavrin@fi dalinternational.com

© 2009 KPMG International. KPMG International provides no client services and is a Swiss cooperative with which the independent member firms of the KPMG network are affiliated.

I� �����"����7=.;7*=287*5��"����7=.;7*=287*5�9;8?2-.<�78�,52.7=�<.;?2,.<�*7-�2<�*�$@2<<�,889.;*=2?.�@2=1�@12,1�=1.�27-.9.7-.7=�6.6+.;�/2;6<�8/�=1.��"���7.=@8;4�*;.�*//252*=.-

15 Driving Indirect Tax Performance

KPMG Global Indirect Tax Services Contacts continued KPMG in Germany Claudia Hillek .��*25��,1255.4�4960,86�

Bernard Morris* .��*25��+68;;2<��4960,86�

KPMG in Greece Ioannis (John), Achilas .��*25��2*,125*<�49600;�

KPMG in Hungary Philippe Norre .��*25��9125299.78;;.�49601>�

Peter Pataky* .��*25��9.=.;9*=*4B�49601>�

KPMG in Iceland Soffia E. Bjorgvinsdottir .��*25��<+38;0?27<-8==2;�49602<�

KPMG in India K R Girish .��*25��4;02;2<1�4960,86�

Pratik Jain .��*25��9;*=243*27�4960,86�

KPMG in Indonesia Lynette Morris .��*25��5B7.==.68;;2<�4960,82-�

Sundfitris Marulitua* .��*25��<>7-/2=;2<6*;>52=>*�4960,82-�

KPMG in Ireland Niall Campbell .��*25��72*55,*69+.55�49602.�

KPMG in Italy Eugenio Graziani .��*25��.0;*C2*72�4<=>-28*<<8,2*=82=�

Massimo Fabio* .��*25��6/*+28�4<=>-28*<<8,2*=82=�

KPMG in Japan Masaharu Umetsuji .��*25� �*<*1*;>&6.=<>32�394960,86�

�"���27�#.9>+52,�8/��8;.*�Dong Suk Kang .��*25��-870<>44*70�4;4960,86�

Mun Gu Park* .��*25��6>70>9*;4�4;4960,86�

�"���27��*=?2*�Steve Austwick .��*25��<*><=@2,4�4960,86�

�"���27��2=1>*72*�Rene Hansen .��*25��;.7.1*7<.7�4960,86�

�"���27��>A.6+8>;0�Jean-Marie Reiser .��*25��3.*7�6*;2.;.2<.;�49605>�

KPMG in Malta Anthony Pace .��*25��*7=187B9*,.�4960,866=�

KPMG in Malaysia Theamhock Chew .��*25��=1.*618,4,1.@�4960,86B�

Chinguan Khoo .��*25��,1270>*74188�4960,866B�

EngyewTan* .��*25��.70B.@=*7�4960,866B�

KPMG in Mexico Cesar Catalan .��*25��,.<*;,*=*5*7�4960,866A�

Luis Ricardo Rodriguez* .��*25��5>2<;2,*;-8;8-;20>.C�4960,866A�

�"���27%1.� .=1.;5*7-<�Leo Mobach .��*25��68+*,15.8�496075�

Leon Kanters* .��*25��4*7=.;<5.87�496075�

�"���27� .@�).*5*7-�Peter Scott .��*25��9,<,8==�4960,87C�

Kim Jarrett .��*25��463*;;.==�4960,87C�

�"���27� 8;@*B�Per Ivar Skinstad .��*25��9.;<427<=*-�496078�

Oddgeir Kjørsvik .��*25��8--0.2;438;<?24�496078�

KPMG in Peru Javier Luque .��*25��35>:>.�4960,86�

Guillermo Grellaud .��*25��00;.55*>-�4960,86�

KPMG in Philippines Herminhildo G. Murakami .��*25��16>;*4*62�4960,86�

I� �����"����7=.;7*=287*5��"����7=.;7*=287*5�9;8?2-.<�78�,52.7=�<.;?2,.<�*7-�2<�*�$@2<<�,889.;*=2?.�@2=1�@12,1�=1.�27-.9.7-.7=�6.6+.;�/2;6<�8/�=1.��"���7.=@8;4�*;.�*//252*=.-�

Driving Indirect Tax Performance 16

Roberto L Tan e-Mail: rltan@kpmg.com

KPMG in Poland Tomasz Grunwald e-Mail: tgrunwald@kpmg.pl

Andrzej Bernatek e-Mail: abernatek@kpmg.pl

KPMG in Portugal Candida Peixoto e-Mail: cpeixoto@kpmg.com

Alexandra Martins e-Mail: alexandramartins@kpmg.com

KPMG in Romania Patrick Leonard e-Mail: patrickleonard@kpmg.com

Ramona Jurubita e-Mail: rjurubita@kpmg.com

KPMG in Russia Konstantin G. Yurchenko e-Mail: KYurchenko@kpmg.ru

KPMG in Singapore Kok Shang Lam e-Mail: kokshanglam@kpmg.com.sg

Alex Capri* e-Mail: acapri@kpmg.com

KPMG in Slovakia Tomas Ciran e-Mail: tciran@kpmg.sk

KPMG in Slovenia Andrej Korinsek e-Mail: andrej.korinsek@kpmg.si

KPMG in South Africa Dermot Gaffney e-Mail: dermotgaffney@kpmg.co.za

Venter Labuschagne* e-Mail: venter.labuschagne@kpmg.co.za

KPMG in Spain Natalia Pastor Caballero e-Mail: npastor@kpmg.es

Joaquim Herrera Gay e-Mail: jherrera@kpmg.es

KPMG in Sweden Gunnar Jonsson e-Mail: gunnar.jonsson@kpmg.se

Peter Iwarsson e-Mail: peter.iwarsson@kpmg.se

Leif Kadin* e-Mail: leif.kadin@kpmg.se

KPMG in Switzerland Maria Menzel e-Mail: mmenzel@kpmg.com

Ivo Gut* e-Mail: igut@kpmg.com

KPMG in Turkey Ferrah Sefer e-Mail: fsefer@kpmg.com

Mehmet Yildirim* e-Mail: myildirim@kpmg.com

KPMG in Thailand Weera Chunhasomboon e-Mail: weera@kpmg.co.th

Phongnarin Ratanarangsikul* e-Mail: phongarin@kpmg.co.th

KPMG in United Kingdom Gary Harley e-Mail: gary.harley@kpmg.co.uk

Bob Jones* e-Mail: bob.jones@kpmg.co.uk

KPMG in the U.S. Brian Stromen e-Mail: bstromen@kpmg.com

Thomas A Boniface e-Mail: tboniface@kpmg.com

Douglas Zuvich* e-Mail: dzuvich@kpmg.com

KPMG in Venezuela Zulay Perez e-Mail: zperez@kpmg.com

KPMG in Vietnam Warrick Cleine e-Mail: warrickcleine@kpmg.com.vn

Rolf Winand e-Mail: wrolf@kpmg.com.vn

Ninh Van Hien* e-Mail: ninhvanhien@kpmg.com.vn

© 2009 KPMG International. KPMG International provides no client services and is a Swiss cooperative with which the independent member firms of the KPMG network are affiliated.

17 Driving Indirect Tax Performancekpmg.com

Niall Campbell Global Head, KPMG Indirect Tax Services Tel: +353 1 4101174 niall.campbell@kpmg.ie

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Throughout this document, “KPMG” [“we,” “our,” and “us”] refers to KPMG International, a Swiss cooperative that serves as a coordinating entity for a network of independent member firms operating under the KPMG name, and/or to any one or more of such firms. KPMG International provides no client services.

© 2009 KPMG International. KPMG International is a Swiss cooperative. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.

Designed and produced by KPMG LLP (UK)’s Design Services

Publication name: Driving Indirect Tax Performance Publication number: RRD-148668 Publication date: June 2009

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