Aly Wijbenga – Global Employment Tax Manager at Liberty Global
“Dennis has helped us further expanding and strengthening our Employment Tax Control Framework. He combines technical expertise with practical process knowledge and the experience to manage a project.”
What is a Control Framework?
A Tax Control Framework (or: TCF) is a derivative of the broader concept of a Business Control Framework (or: BCF). A well-known example of a BCF is COSO’s “Internal Control – Integrated Framework”, better known as the COSO model. This model is used by many companies across the world.
In essence, control frameworks aim to help organisations to achieve the following three things:
- effective and efficient operations
- reliable reporting
- compliance with applicable laws and regulations
It does that by creating insight in the processes. By identifying risks in those processes that may jeopardise the achievement of the above objectives. And designing controls to avoid occurrence of those risks and mitigate their impact. Icing on the cake is the monitoring, which is designed to test whether the framework is working and to ensure continuous improvement.
So what is special about a Tax Control Framework?
Tax Control Framework specifically focus on, well, tax! However, it is important to realise that the best results are achieved if they are integrated in the broader company control framework. Usually departments like Finance and Internal Audit are good reference points for a conversation to accomplish this.
The Tax Control Framework may cover all taxes that a company Think of Corporate Income Tax, VAT, Wage Tax, Environmental levies etc. Or only those that are material to the company. Some companies choose to include all taxes in one framework, others use an umbrella model and design individual frameworks for the separate taxes.
The benefits can be cost savings through more efficient process and a reduction of risks of unaccounted additional tax costs. The existence of a Tax Control Framework is also one of the requirements from the Dutch tax authorities in order to shift from retroactive and repressive monitoring, to a more proactive and horizontal relationship. This may avoid time-consuming audits. We even conclude rulings for our clients who can demonstrate control of their expat payroll. With this ruling, their employees are relieved from their income tax filing obligation, saving the company and their employees time and money!
What has TTT Group to offer?
Our expertise with Tax Control Frameworks is in the areas of (1) Dutch wage tax and (2) expat payroll control frameworks and (3) global mobility frameworks. Indeed the latter is not directly tax related. But wouldn’t be great to have a system in place that ensures that you have clear goals from your mobility program, that the processes to execute your mobility program are effective and efficient and that you can assign your people without worrying of being non-compliant?
“Dennis has helped us further expanding and strengthening our Employment Tax Control Framework.” Aly Wijbenga
We have helped many clients with developing their first version of a tax control framework, we have tested the design, existence and effectiveness of their existing frameworks and have helped clients further strengthening their frameworks. We have also supported clients with their interactions with the Dutch tax authorities and negotiated rulings on their behalf. Depending on the clients need, we have taken the roles of consultant, project manager or even project lead.
Our approach is aimed at creating transparency in the processes, connecting the various stakeholders in the process and creating overall awareness for the importance of the underlying subject. We have developed a fixed way of working, for efficient project delivery. We use co-creation session with the stakeholders and use visual illustrations in order to of systems and people interactions. We call this creating “landscape” views. Maturity modelling can be part of the deliverables, to help you create a roadmap for continuous improvement.