Global Controls Services
Actively managing the risks associated with remuneration and benefit programs
Downturn in the world economy generates a need for multinational organizations to revisit the definition of an acceptable remuneration and benefit programs risk profile. A level of risk that may have been tolerable a few years, or months ago, should be re-assessed to determine whether it may now be judged too great of an exposure. A number of factors are contributing to this need for re-assessment in this shifting landscape.
First, in response to decreasing revenue bases, we anticipate that tax and other regulatory authorities will intensify their compliance efforts. This may also include the assessment of penalties with those found to be non-compliant. With improvements to the authorities’ information technology and an expanding practice of sharing information, the capacity for more active compliance enforcement continues to grow.
Simultaneously, the executives responsible for the design and operation of remuneration and benefit plans are challenged to do more with less. Budgets and headcounts are repeatedly reduced, increasing the reliance on technology tools and process to manage operational compliance. Meanwhile, management teams must document and may be asked to attest to the accuracy of their compliance. The pressure to be compliant is amplified.
As obtaining additional funding or headcount may be an impossibility in the current economy, it is imperative that multinational organizations increase the value derived from the resources allocated to controlling remuneration and benefit programs.
Employees and remuneration and benefit programs that operate across borders create a unique set of administrative challenges. We have extensive experience assisting organizations in assessing and managing the corporate, individual and payroll tax risks associated with cross border programs. Our Global Controls team helps:
- Design processes and controls to manage the tax risks associated with complex cross-border remuneration and benefit programs
- Assist companies to develop and implement processes to identify the compliance gaps and to assess and implement alternatives to remediate tax exposures arising from remuneration and benefit programs
- Develop administratively efficient procedures that leverage technology to enhance the organization’s ability to manage data, improve corporate governance and comply with rules and regulations.
- Implement procedures to effectively handle the complexities produced by corporate life events (such as mergers and acquisitions).
The importance of a controls structure is growing exponentially as regulators and tax authorities exert greater pressure on companies. Our clients benefit from our integrated delivery model which features a deep bench of seasoned professionals that possess both technical skill and business acumen. This approach enables us to provide more strategic, proactive and value added support to our clients.
Learn more about our Global Controls services in the PDF attached below.