tei 2012: members first report to austin chapter timothy j. mccormally executive director tax...
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TEI 2012: Members First
Report to Austin Chapter
Timothy J. McCormallyExecutive Director
Tax Executives Institute
October 24, 2012
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TEI 2012: Members First
DeTocqueville’s Observation
The Strength of Voluntary Associations: Individuals with common interests joining together to accomplish what
they could not do alone
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TEI 2012: Members First
21st Century Translation:
Strength in Numbers; Courage in Anonymity
December 2, 2009 4
TEI 2012: Members First
TEI Mission
Tax Executives Institute serves its members and their employers through education, networking, and advocacy.
In good times and bad, TEI strives to provide the best value in membership, education, networking opportunities, and
advocacy of our member’s interest.
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TEI 2012: Members First
Vision 20/20 Task Force
Methodology Research Values Goals Prioritized Objectives Tactical Initiatives
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TEI 2012: Members First
Vision 20/20 Task ForceValues
• Ethics & Integrity• Professionalism• Valuing People & Partners• Individual Growth & Development• Focus on the Future• Diversity• Visionary Leadership• Organizational Community
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TEI 2012: Members First
Vision 20/20 Task Force Goal Areas
• Education• Advocacy & Government Liaison• Global Operations & Initiatives• Marketing, Communications, and Public
Relations• Membership Recruitment, Retention &
Networking• Chapter Development & Relations• Governance and Management
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TEI 2012: Members First
Vision 20/20 Task Force “Operationalizing”
• Development of Prioritized Objectives (POs) and Tactical Initiatives (TIs)
• Process for Selecting TIs for inclusion in annual Operating Plan
• “Evergreening” nature of the plan
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TEI 2012: Members First
Overarching Theme of 2012-2013: TEI 2012: Members First
Being Member Centric in All We Do Customer Service: Listening and
Transparency Advocacy: Serving as an Effective Voice
for the Membership Diversity: Reflecting the Strengths of the
Membership
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TEI 2012: Members First Staff Transition
• Executive Director• Chief Tax Counsel• Director of Marketing & Communications
Expansion of Membership• Australia• Brazil
Advocacy• Transparency & Inclusion• Tax Reform• Global Tax Advocacy Task Force
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TEI 2012: Members First
Advocacy
The Challenge of Reaching Consensus
Winners and Losers (across borders or industries)
The Perfect as the Enemy of the Good
Setting Priorities
TEI 2012: Members First
Governance Assessment
Effective Use of IT/Website
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TEI 2012: Members First
Corporate Tax Department Survey
• Survey initiated in 2011, completed in 2012
• Updates surveys done in 1991 and 2004-2005
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TEI 2012: Members First
Corporate Tax Department Survey
67 questions
More than 500 CTOs responded
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TEI 2012: Members First
Corporate Tax Department Survey
The final product is a compendium of summary results, analysis, third-party commentary, and an online stratification tool that can be used to create customized tables of results
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TEI 2012: Members First
Corporate Tax Department Survey
Performance Management: The most common measurement used to evaluate the tax department’s performance was “lack of surprises” (72%)
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TEI 2012: Members First
Corporate Tax Department Survey
Other measures • Results of audits (cited by 60%)• meeting compliance deadlines (59%)• cash taxes (57%)• effective tax rates (53%)• measurable tax project objectives (53%)• staying within the department budget (51%)
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TEI 2012: Members First
Corporate Tax Department Survey
Significant Deficiency/Material Weakness: 14% reported company received a significant deficiency or material weakness from auditors with respect to tax in past 5 years
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TEI 2012: Members First
Corporate Tax Department Survey
Significant Deficiency/Material Weakness: Substantial majority (70%) were able to remediate the deficiency or weakness in 1 year or less
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TEI 2012: Members First
Corporate Tax Department Survey
Significant Deficiency/Material Weakness: 14% reported company received a significant deficiency or material weakness from auditors with respect to tax in past 5 years
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TEI 2012: Members First
Corporate Tax Department Survey
Company size and location: The majority of companies responding (63%) have consolidated worldwide revenues of more than $1 billion
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TEI 2012: Members First
Corporate Tax Department Survey
Senior Tax Executive: Similar to the 2004-2005 survey, the majority of senior tax executives have the title “Director of Tax/Corporate Tax Director” (39%) or “Vice President” (39%)
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TEI 2012: Members First
Corporate Tax Department Survey
67% of STEs report directly to the company’s CFOs
12% report to Controller 9% to Chief Accounting Office 5% to the Treasurer
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TEI 2012: Members First
Corporate Tax Department Survey
Number of Employees: Companies responding to the survey have an average 10.6 employees within the tax department and 0.7 contractors (for an average of 11.2 total personnel, compared to 11.4 in 2004-05)
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TEI 2012: Members First
Corporate Tax Department Survey
Number of Employees: 71% have 4 or more total personnel in the tax department.
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TEI 2012: Members First
Corporate Tax Department Survey
Tax Department Budget: Just more than half (54%) saw an increase in their tax department’s budget during the past 3 years; 64% reported increases in the same period in the 2004-2005 survey
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TEI 2012: Members First
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Corporate Tax Department Survey
Software/Technology: Tax department IT has improved since 2004; 21% report the company’s tax provision software is integrated with the compliance system, compared with 15% in the 2004-2005 survey
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TEI 2012: Members First
Corporate Tax Department Survey
Audits: About one-third (30%) report an increase in federal/national home-country audits over the past 3 years (59% report no change)
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TEI 2012: Members First
Corporate Tax Department Survey
Survey results are available online as well as in book form
Provided on a complimentary basis to survey participants
Members receive discount
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TEI 2012: Members First
Continuing Education
• 67th Annual Conference (Hollywood, Florida)
• State & Local Tax Controversy Seminar (December 2012)
• Return of Complimentary Webinars
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TEI 2012: Members First
Continuing Education
Now is time to belong to TEI
TEI’s programs provide the best value, dollar for dollar, for training dollars, especially at chapter level
The value of belonging to a network Sharing Insights Sharing Experiences Sharing Recommendations
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TEI 2012: Members First
IT/Website Developments
• LinkedIn Presence• Chapter Websites & Blogs• Better Search Engines• More Archival Information• Launch of “MemberFuse” to Enable
Collaboration Among Members• Mobile App for Annual Conference
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TEI 2012: Members First
Personal Reflections
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TEI 2012: Members First
Questions?
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TEI 2012: Members First
Thank You
Timothy J. McCormally202.464.8340
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