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Securing tomorrow

today Meeting strategic tax

goals through a

transformational

outsource model

Peter Hordijk – Unilever

Jan van Trigt – Deloitte Netherlands

Sandra Winkster – Deloitte Netherlands

• Introduction

• Unilever’s tax vision on outsourcing and future state 3

• How to scope the outsourcing RFP 7

• How to partner with the service provider when drafting an agreement 11

• The partnership in day-to-day operation 14

• The pros and cons of a central vs. decentralised approach 19

• Expectations from country by country reporting 21

Contents

Unilever’s tax

vision on

outsourcing and

future state

• FTE reduction

• Globalisation of the Tax department

• ETS strategy on finance transformation

Starting from a clear understanding of Unilever’s

vision on outsourcing

Unilever’s desired future state of the tax function

How to scope the

outsourcing RFP

How to scope the outsourcing RFP

• Strategy, vision and prioritised objectives

• Detailed knowledge of current operations: organisation, tax processes and activities, data flows, systems used, information required, master data status, legal entities and entity complexities

• Future operating model and governance model: Scope, requirements and gaps to address

• Current and future cost model: Understanding of current baseline costs, projected ongoing outsourcing and retained organisation costs, projected one-off costs and targeted savings

• Qualitative benefit analysis

• Risks, challenges and dependencies

RFP readiness

How to scope the outsourcing RFP (cont’d)

• Feasibility survey

• Business case arms and legs

• ETS strategy on finance transformation

Country overview

How to scope the outsourcing RFP (cont’d)

• Retained organisation

• Cooperation with finance

How to partner

when drafting an

agreement

How to deal with sensitivities regarding potentially

affected people

• EU culture vs. US culture

• Transfer of Undertakings (Protection of Employment) Regulations (TUPE)

• Workers Council

How to deal with sensitivities

• Clear vision on process from long list to short list

• Fine tuning scoping

• Relationship with Unilever's procurement department

• Legal discussions and legal department relationship between Unilever and Deloitte

The partnership

in day-to-day

operation

Day-to-day governance

• Governance structure

• Role EMO

Day-to-day governance (cont’d)

• Local contracting

Day-to-day governance (cont’d)

• Deloitte Tax Insight management system (DTi)

How does the triangle of finance, tax and service

provider work smoothly together

• Quality improvements with joint common interest

• Direct contacts: one efficient data gathering

• Level of ERP automation

Deloitte

Unilever Tax

Partner-ship

Unilever Finance

The pros and

cons of a central

vs. de-centralised

approach

What are the pros and cons of a central vs.

de-centralised approach

• Globalisation of the tax function

• Link with ES/ETS strategy

• Local vs. central contracting

• Local statement of work

Expectations

from country-by-

country reporting

What impact is expected from per country reporting?

• No permanent establishments

• DTi management system

• Impact on ERP / SAP

• Impact of this type of legislation on globalisation of tax department

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