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What is the Best Way to Manage Local Compliance?
 

What is the Best Way to Manage Local Compliance?

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    What is the Best Way to Manage Local Compliance? What is the Best Way to Manage Local Compliance? Presentation Transcript

    • WHAT IS THE BEST WAYTO MANAGE LOCALCOMPLIANCE?Panel discussionSIMON WATSON | BDOGUIDO OUDEJANS| TOMTOMRALPH GEERTSEMA | BTShared Services & Outsourcing Week, AmsterdamMay 2012 Copyright © May 12 BDO LLP All rights reserved
    • AGENDAIntroductionsContextPanel discussionQuestions
    • BDO INTERNATIONAL 5th 1,100 48,000 135 $5.7bnBDO International is More than 1,100 offices Over 48,000 partners Present in more than Total combined fee incomeone of the world’s and staff world wide 135 countries of US$5 7bn (2011)five largestaccountancynetworksBDO outsourcingservicesInternational compliance Local accounting VAT returns  Management accounting Local statutory accounts  Advice on trading entities Statutory audits  Company registration Corporate tax returns  Acting as local directors Corporate housekeeping  Setting up and operating Payroll bank accounts Flexible characteristics of local firms, supported by world-wide network and strength of a global player THE LEADING ALTERNATIVE TO ‘BIG-4’
    • CLIENTS FROM ACROSS THE GLOBE Payroll and Statutory accounts, Full scope Stat accounts, Global outsourcing Statutory accounts, supporting services VAT, CIT service (including payroll, direct & indirect services for BT tax, company including treasury and Global service back office, tax Global Services secretarial and for a FTSE 100 co-ordination CoSec, bank payroll for US 120 countries in 90 countries pharmaceutical firm signatory etc.) technology business 50 countries North America, worldwide worldwide EMEA and Asia 25 EMEA countries 20+ countries 38 countries across Pacific regions worldwide all regions
    • BDO COMPLIANCE SURVEY 2011Which factors are most important to you when consideringlocal compliance? 80 70 60 50 40 30 20 10 0 Avoiding local Improving Reducing cost Reducing risk Affects the Access to local Local presence Reducing Other penalties visibility and of compliance business case knowledge for tax audits management other control for SSC time in comm resolving local bel issues.
    • BDO COMPLIANCE SURVEY 2011Which model does your company most use for local, in-country compliance? 60 50 40 30 20 10 0 Mainly use in-house Different providers Our SSC does local Our BPO provider Single, global Not sure staff in each in each country compliance from a does local provider with country central location compliance from a offices in each central location country and central coordination
    • BDO COMPLIANCE SURVEY 2011Which challenges have you experienced with local staffinvolved with compliance? 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Career structure Cover for in- Retention of key Recruitment of Part-roles None for remaining country staff staff staff with the connected with local finance involved with right skills compliance staff compliance affect the business case for SSC
    • BDO COMPLIANCE SURVEY 2011Which other challenges have you experienced with localcompliance? 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Lack of Difficulty High cost of Penalties for Lack of Fines or legal Distraction None visibility over coordinating local late or practical proceedings for central local filings multiple compliance incorrect advice over for local management local (eg. fees or filing changes in directors resolving suppliers internal) local local regulation compliance or service provider issues
    • TomTom FSSC May 2012SSOW Event Amsterdam
    • Personal ProfileProfessional ExperienceCurrent:› VP Finance at TomTom (July 2010 – Present)Previous:› Interim Manager at Guido Oudejans Interim Management & Consultancy B.V. ( 2008 – 2009)› Director at PricewaterhouseCoopers Global Compliance Services (January 2004 – November 2007)› Director at Deloitte (July 2002 – December 2003)› Director at Andersen (August 1987 – June 2002)10
    • WORLD LEADERIN LOCATION AND NAVIGATION OVER 3,500 BASED PRODUCTS EMPLOYEES IN AND SERVICES WORLDWIDE AMSTERDAM12
    • TomTom app for iPhone/iPad Celebrity voices Map share technology Latest map guarantee TomTom IQ Routes Advanced lane guidance Spoken street names TomTom HD Traffic TomTom speed cameras8
    • SportWatch by Nike and TomTom Tracks run data (time, distance, heart rate etc.) Run history and reminders Connects with world’s largest running club Easy to use16
    • Line-fitted and aftermarket18
    • Business Solutions = More than navigationLeveraging the TomTom assets and brand for business Navigation Communication Fleet management Be in touch with drivers and cars Know what’s going on in your fleet Help people to work more efficiently Improve your business performance20
    • TomTom LicensingProduct portfolio Government, Internet, logistics and transportationPortable and wirelessRetail and insurance Financial services22
    • Key financials profit & loss metrics(in € millions) Revenue Net results 400 2,000 1,737 1,674 317 1,600 1,364 1,480 1,521 300 222 1,273 175* 1,200 200 143 720 87 108 800 100 68 400 0 0 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 201124
    • Our offices Amsterdam Eindhoven Ghent Helsinki Amersfoort Stockholm Edinburgh Copenhagen Moscow Calne Berlin Warsaw Lodz London Harsum Paris Munich Prague Leipzig Zurich Budapest Lebanon Milan Vienna NagoyaRedwood City Southfield Concord Madrid Istanbul Tokyo Shanghai Lisbon Taipei Seoul Mexico City Pune Bangkok Kuala Lumpur Singapore Jakarta Sao Paulo Employees 5 – 50 Irene Sydney 50 – 200 > 20026
    • Our Finance OrganisationIn TomTom financial shared services we have the functions AP, AR, GL, Procurement,and Payroll. Geographically, we have organised the finance support functions asfollows: › EMEA: Amsterdam SSC. 60 Heads•› Asia: Decentralised model. Coordination team in Singapore. 20 Heads•› Americas: Decentralised model. 10 HeadsAt Corporate level we have the functions Group Tax, Group Treasury, GroupAccounting & ControlOur accounting runs on SAP and reporting is under IFRS27
    • Compliance model - CurrentThe TomTom Group compliance landscape – SFS and CIT filings - looks as follows: › EMEA: 40 filings › APAC: 26 filings › Americas: 8 filingsOn top of this, we have indirect tax, payroll and statistics filings.The filings are organised as follows: In-house / Dutch filings Outsourced Outsourced to Foreign filings multiple service providers 28
    • Why Outsourcing› Core service by provider (TomTom is in navigation business)› Knowledge management (IFRS <-> Local GAAP)› Risk appetite (focus)› Global reach service provider (uniform approach/support to local audits)› Coordination & reporting services (one team/one contract)We started working together with BDO in 2010. BDO provides TomTomwith SFS and CIT services in a number of countries. Local delivery,coordinated through their Amstelveen office. Dashboard provides filingstatus and acts as central repository.29
    • Challenges› Transition path: Requires proper support and scoping. Ie who remains responsible for pending, potentially overdue filings. The current or new provider› Global reach: Presence in all of the countries? How strong is a partner provider or a network office in a country. Is compliance core business to a local partner or office. Differences in quality exists› Tier 1 vs Tier 2: Choice of audit firms in Tier 1. Choice may become more limited if compliance is performed by Tier 1 firm. Tax advisory vs Tax compliance Ultimately, the corporate is responsible for its filings30
    • Next steps › Bundle - Concentration of compliance filings with selected number of providers › Standardise - Uniform input data provisioning (One Pack) › Optimise - Fit of compliance dashboard to TomTom reporting model › Control - Align checks & balances TomTom with service providers31
    • Shared Services and Outsourcing Week,2012Ralph Geertsema, BT
    • Placing compliance environment in astandard outsourcing grid Local High Risk VAT/Tax Statutory filing Reporting Easy Complex Low Risk Checking / Preparing validating Stat Transactions Reports
    • BT Compliance environmentconsidering the Long Tail… OUTSOURCEDLocal Outsourcing to E&Y / BDO Statutory Co-Source Local Small Reporting house In Country US Major Operation Hub MEA & APAC LOCAL CENTRALIZED Large European ..... Entity model Legacy situation IN HOUSE
    • Possible areas to develop OUTSOURCED Statutory 1 Reporting LOCAL CENTRALIZED 2 IN HOUSE
    • AGENDAIntroductionsContextPanel discussionQuestions