- Are companies ready? Minimising risks and strategies to meet the deadlines - Educating business stakeholders: how will regulatory changes affect all business processes? - Holistic approach to dealing with additional international transparency requirements Louise Li, Director of Tax, EMEA and APAC, International Taxation, Wells Fargo

1. The Cost of Non-Compliance:
Financial and Reputational Consequences
19 November 2014
Presented by: Louise Li

2. Key Issues
1.Are companies ready?
2.How do we educate businessstakeholders?
3.What approach is required to deal with additionalinternationaltransparencyrequirements?

4. Are Companies Ready?
Answer -Probablynot
What do they need to be ready for?
•Change in profile
•Integration
•Operating in new jurisdictions
•Addressingrisks identifiedin the due diligence
•Tax risks

5. Tax Risks
1.Real risks
1.Threats on the horizon
2.Risks not involving tax
payments
Planning for risk needs insight & judgement

6. Tax Risk –Reputational Risk
•Risk
–Has the law been broken
–Has the company acted unfairly
–Mergers
•Readiness
–Risk analysis
–Assess tax benefit
–Policies and procedures
•Reaction
–Containment
–Planned response
–Advance planning

7. Tax Risk -What is the Source of Reputational Damage
It takes 20 years to build a reputation and 5 minutes
to ruin it. If you think about that, you’ll do things differently ( Warren Buffet)

8. Tax Risk -Reputational Risk Readiness and Reaction
Readiness
•Perform risk analysis
•Assess tax benefit
Reaction
•Policies and procedures
•Containment
•Think of response
•Advance planning
•Recovery

9. Reputational Risk – Key Takeaways
•We are alert to yesterday’s risk but we must understand the risks we are facing today and tomorrow
•Have coordinated internal procedures in place that have been tested
•Prepare now. Don’t wait for the external stakeholders to ask those awkward questions
•Have a global response to local issues
•Understand the media. There are multiple risks and hence multiple ways to address them

10. How Do We Educate BusinessStakeholders?
•How risks get identified
•How risk exposures are assessed
•How risks can be mitigated in short and medium term
•How risks are reported
•Forums for reporting

11. International Transparency
•The austerity measures of tax authorities have driven the interest in tax
•It is not going way
•It is an international, not local, issue
•Companies need to seize the initiative
•Consider where to report

12. Transparency
Question-Why is transparency the new buzz word in governance and what is its impact?
Answer -Fair tax debate

13. Group Tax Strategy

14. Conclusion
Companies need a strategic approach to tax risk to allow them to focus on future risks and opportunities that could arise.
This is a group wide responsibility and not just with the tax department.
Our internal and external audience is changing as is the data required and the form of communication.
We need to take the initiative now.

15. Louise Li
Louise.li@wellsfargo.com
Twitter thelouiseli