One minute with Mark Feldman VP, Tax strategy and business support, Pearson
How do you see the in-house tax function evolving over the next 5-10 years?
Tax will continue to get faster. Risks will need real-time, active management to address a reduced tolerance for errors. Joined-up fiscal authorities will increasingly mine data and apply their resources based on up-front reviews of tax controls. This will spur a need for quicker information and investment in technology, processes and people. In-house teams will focus less on technical tax and more on change management, process improvement, strategic thinking and cross-functional leadership. Advocacy, diplomacy, dispute resolution and commercial acumen will be prized as the interests of a wider range of stakeholders are risk-assessed and balanced.
What’s the biggest hurdle you face in your role?
Communicating a robust medium to long-term tax strategy in the face of the twin pressures of a business that is rapidly evolving and the pace and degree of change in the external tax environment. This results in continually nuancing my judgement calls on whether, and how, to revisit existing arrangements, address current risks and plan for ever-changing future developments.
What’s the key challenge facing your industry sector?
Pearson is a global learning company which is increasingly focused on digital educational products and services. The OECD’s BEPS initiative means there is huge uncertainty as to what, and indeed whether, international norms will establish themselves for the taxation of the digital economy. Generally in this area attitudes of international authorities are hardening for both direct and indirect taxes. This increases the prospect of unilateral measures leading to heavier compliance burdens and double taxation.
If you could make one change to UK tax law, what would it be?
However maligned the complexity of the UK tax code, swathes of its international aspects feature positively in the OECD BEPS discussion papers. In no small part that is due to the coherent international tax reforms of successive governments. I would encourage the next government to go further and produce and implement a coherent tax strategy and roadmap that looks at the design of the tax system as a whole. (If it advocates taxing income, NICs and capital similarly that would be a good start!)
There is pressure for corporates to be more transparent on tax issues. What’s your view?
I maintain the intention is sound and I think this question will be increasingly rendered moot. There are already measures in the extractive and financial services industries which will require increased transparency and that will spread to all industries over time. The challenge will be one of execution and application: ensuring that the information is accessible and used in the right way to improve the quality of the current debate. Should transparency be two-way: should tax authorities have requirements imposed on how they use the data and what they do with it?
How do you select your advisers?
I am extremely privileged to have worked, and continue to work, with some of the most talented and accessible advisers in the profession. Of course I look for ‘value’ but define that widely to include: the experience to provide constructive challenge and cast-iron judgement; the empathy that is built over time from a strong, fair relationship; and someone with whom I can have some fun amidst the more challenging moments in projects.
What are you doing as a result of BEPS?
Reading a lot! Even so, without the informal networks I have with other tax professionals it would be a struggle to keep on top of all the information produced by the OECD, advisers and wider commentators. Externally we have commented, where appropriate, on discussion drafts. Internally most efforts are focused on scenario planning to advise senior management as to what the intended and unintended consequences of BEPS could be.
Tell us a secret about yourself.
I am a keen potter and in the smidgen of personal time that is not spent having fun with my young family, I can be found throwing clay on my potter’s wheel. For a non-smoker, I have a remarkably large collection of ashtrays!
One minute with Mark Feldman VP, Tax strategy and business support, Pearson
How do you see the in-house tax function evolving over the next 5-10 years?
Tax will continue to get faster. Risks will need real-time, active management to address a reduced tolerance for errors. Joined-up fiscal authorities will increasingly mine data and apply their resources based on up-front reviews of tax controls. This will spur a need for quicker information and investment in technology, processes and people. In-house teams will focus less on technical tax and more on change management, process improvement, strategic thinking and cross-functional leadership. Advocacy, diplomacy, dispute resolution and commercial acumen will be prized as the interests of a wider range of stakeholders are risk-assessed and balanced.
What’s the biggest hurdle you face in your role?
Communicating a robust medium to long-term tax strategy in the face of the twin pressures of a business that is rapidly evolving and the pace and degree of change in the external tax environment. This results in continually nuancing my judgement calls on whether, and how, to revisit existing arrangements, address current risks and plan for ever-changing future developments.
What’s the key challenge facing your industry sector?
Pearson is a global learning company which is increasingly focused on digital educational products and services. The OECD’s BEPS initiative means there is huge uncertainty as to what, and indeed whether, international norms will establish themselves for the taxation of the digital economy. Generally in this area attitudes of international authorities are hardening for both direct and indirect taxes. This increases the prospect of unilateral measures leading to heavier compliance burdens and double taxation.
If you could make one change to UK tax law, what would it be?
However maligned the complexity of the UK tax code, swathes of its international aspects feature positively in the OECD BEPS discussion papers. In no small part that is due to the coherent international tax reforms of successive governments. I would encourage the next government to go further and produce and implement a coherent tax strategy and roadmap that looks at the design of the tax system as a whole. (If it advocates taxing income, NICs and capital similarly that would be a good start!)
There is pressure for corporates to be more transparent on tax issues. What’s your view?
I maintain the intention is sound and I think this question will be increasingly rendered moot. There are already measures in the extractive and financial services industries which will require increased transparency and that will spread to all industries over time. The challenge will be one of execution and application: ensuring that the information is accessible and used in the right way to improve the quality of the current debate. Should transparency be two-way: should tax authorities have requirements imposed on how they use the data and what they do with it?
How do you select your advisers?
I am extremely privileged to have worked, and continue to work, with some of the most talented and accessible advisers in the profession. Of course I look for ‘value’ but define that widely to include: the experience to provide constructive challenge and cast-iron judgement; the empathy that is built over time from a strong, fair relationship; and someone with whom I can have some fun amidst the more challenging moments in projects.
What are you doing as a result of BEPS?
Reading a lot! Even so, without the informal networks I have with other tax professionals it would be a struggle to keep on top of all the information produced by the OECD, advisers and wider commentators. Externally we have commented, where appropriate, on discussion drafts. Internally most efforts are focused on scenario planning to advise senior management as to what the intended and unintended consequences of BEPS could be.
Tell us a secret about yourself.
I am a keen potter and in the smidgen of personal time that is not spent having fun with my young family, I can be found throwing clay on my potter’s wheel. For a non-smoker, I have a remarkably large collection of ashtrays!
