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1 WELCOME! The webcast will begin shortly after the hour. Audio The audio should stream directly through your speakers. If you do not have VoIP capability or would prefer to use a phone line, make sure your Audio Mode is set to Use Telephone and use the phone number provided in the Audio section on the right. Questions If you have any questions please submit them in the Questions box.

2 RECHARGE YOUR TAX PROCESSES MAY 8, 2013 SPEAKER: CHRIS D AMBOLA SOLUTION CONSULTANTS MANAGER

3 AGENDA MARKET TRENDS THE BROADER LENSE EXECUTION QUESTIONS & ANSWERS

4 EVOLVING MARKET TRENDS

5 POLLING QUESTION #1 How would you assess the attitude in your Tax Department? Things work so there is no need to change Things work but we know technology could help I want change but the organization is not supportive We are pro-technology but slow moving We are pro-technology with a defined plan of action

6 THE MARKET Globalization SARBOX or No SARBOX Educating Finance, IT, C-suite Welcoming SAAS offerings Maturation of Software Evolution of Technology

7 ADDRESSING GLOBAL COMPLIANCE Growing materiality of foreign entities Increasing effectiveness of local finance resources Gain comfort in statutory provisions & true ups Leverage content and data for effective planning and audit defense Scrutiny of Transfer Pricing & Indirect/VAT taxes

8 ADDRESSING STATE COMPLIANCE Growing materiality of state tax exposure Attain granularity without expending exponentially more effort Gain comfort in state liabilities, payments, & true ups Leverage content and data for effective planning and audit defense

9 DIFFERENT PERSPECTIVES VENDOR Straightforward software evaluation, minimal process optimization sought Point solutions work well, no desire to reduce cost through integration, standardization, or automation Minimal pressure around shortening close, filing earlier, reducing costs, reallocating resources to strategic work PARTNER Seeking a long-term global tax technology partner Proactively looking to maximize ROI and reduce your total cost of ownership Integrating your functions to innovate and re-engineer around data reuse and operational efficiency Implementing a tax strategy that supports your business strategy

10 POLLING QUESTION #2 What do you think is the biggest benefit of employing technology? Controls Speed Trusting numbers The ability to do planning and forecasting

11 UNDERSTANDING THROUGH A BROADER LENSE

12 THOSE GOALS ARE SO 2010 Controls SOX Audit Trails & User Access Controls Automation Return to Provision Book/Tax Differences

13 TAX AND ACCOUNTING ECOSYSTEM ERP & CONSOLIDATION SYSTEMS FIXED ASSETS, PAYROLL & OTHER SYSTEMS WORKPAPERS & TAX PACKAGES DATA STRUCTURED DATA UNSTRUCTURED DATA DATA MANAGEMENT INCOME TAX RETURNS INDIRECT TAX RETURNS PROPERTY TAX REPORTING SOLUTIONS TAX PROVISION TRANSFER PRICING UNCERTAIN TAX POSITIONS TAX RATES GUIDANCE TREATIES RESEARCH, GUIDANCE & TRAINING PROCESS MANAGEMENT TAX CALENDAR WORKFLOW ENTITY MANAGEMENT FILEROOM

14 EXAMPLE 1: AUDITS INCOME FRANCHISE SALES PROPERTY TRANSFER PRICING

15 EXAMPLE 1: AUDITS

16 EXAMPLE 1: AUDITS

17 EXAMPLE 2: STATE TAX

18 TYPICAL STATE PROCESS Use last year s apportionments High level aggregate expense computation Estimates completely disconnected and manual Return to provision lacks any automation Minimal planning and forecasting activities APPORTIONMENT COMPLIANCE ESTIMATES PROVISION

19 OPTIMAL STATE PROCESS Current apportionment with updated content Detailed state current expense/liability, fed benefit, true up Estimates driven by provision & compliance with updated content Visibility into current state details and future enacted rates for optimal planning capabilities

20 EXAMPLE 3: INTERNATIONAL TAX

21 TYPICAL DATA MANAGEMENT REQUEST DATA FINANCE/IT DEPARTMENTS

22 TYPICAL DATA MANAGEMENT WAIT

23 TYPICAL DATA MANAGEMENT RECEIVE DATA

24 OPTIMAL DATA MANAGEMENT ETL WEB EXCEL

25 EXAMPLE 3: INTERNATIONAL TAX Lack of trust in data Book Transfer Pricing end of year true up Costly high level tax planning strategy Global sign off Start with Transfer Pricing adjusted Income Real time global tax optimization

26 POLLING QUESTION #3 Where do you see the biggest room for improvement in your Tax Department? Financial Reporting Data Management and Process Management State Tax Accrual International Tax Management Compliance and Audits

27 IT IS ALL ABOUT EXECUTION

28 CHICKEN OR THE EGG SYSTEMS Structure Reduce Variables Shed bad habits Level Setting DATA Starting point Better answer Garbage in

29 THE REALITY SYSTEMS DATA The tax lifecycle never stops and the data is constantly evolving

30 TRANSPARENCY YIELDS COMFORT Effective Tax Rate Reliable and reusable systems increase data visibility Increased visibility reduces time spent checking for errors and improves the quality of data Better quality data allows effective planning activities

31 ONE PLACE TO QUICKLY ACCESS HIGHER QUALITY DATA ONE EASY SOLUTION TO CREATE, STANDARDIZE AND ENFORCE AN EFFICIENT WORKFLOW ONE RESOURCE TO IMPROVE COMPLIANCE ONE ENVIRONMENT TO BETTER MANAGE GLOBAL RISK ONE MAJOR STEP TO IMPROVE JOB SATISFACTION AND RETAIN STAFF

32 POLLING QUESTION #4 What do you feel to be the most compelling reason for change? General knowledge of better controls and systems Staying current with market trends and technology Looking like a rock star internally to management Looking like a rock star externally to my peers The pursuit of a happier Tax Department

33 Q AND A QUESTIONS AND ANSWERS

34 THANK YOU FOR JOINING! For questions about this webcast, contact: