One minute with Richard Iferenta, Vice Chair of KPMG.
What’s keeping you busy at work?
The work we are doing is very varied and includes dealing with large-scale VAT disputes and appeals in the financial services arena, supporting clients with implementing VAT technology, and using technology ourselves to support the delivery of both compliance engagements and VAT advisory projects.
Some of the specific technical areas we are seeing include the scope of VAT exemption (and HMRC considering its boundaries); the need to ensure that contracts are appropriately structured, not just in the fund management world, but more generally to avoid single/multiple supply risks; and a raft of cross-border issues. Unsurprisingly, we are also doing a lot of work around partial exemption.
Tell us about your role as Vice Chair of KPMG?
It’s a privilege being a Vice Chair, and I’m extremely passionate about making society and the profession more open and inclusive to all. It is rewarding to see Black heritage colleagues at KPMG progressing significantly – over the last two years alone we’ve seen the number of black partners and directors double. We have put in place our Allyship programme which pairs up Black heritage colleagues with partners and directors who take responsibility for coaching, sponsorship and mentoring these colleagues. In our tax practice, we have an initiative to attract more black talent by leveraging specialist recruitment agents, and this is directly sponsored by our head of tax, Vicki Heard. Whilst I am happy that we have started this journey of making our practice more inclusive, there is still much more to do to ensure that everyone can maximise their potential regardless of their background.
I am also focused on ensuring we achieve socio-economic diversity at KPMG, and I’m working closely with the City of London taskforce on socio-economic diversity to bring about change.
Having said all of that, the greatest priority right now is the desperate situation our Ukrainian friends find themselves in. I am proud that KPMG moved quickly in its response and has also committed to supporting charitable efforts in the region. Over the past week, in my current role and as a board member of London First, I have been working with the business community to explore ways of supporting Ukrainian refugees by providing jobs and other economic support. Clearly, this support must also extend to refugees from other jurisdictions.
What should we look out for later this year?
HMRC announced it would be carrying out a review of the financial services VAT regime just before the pandemic. This has rightly been put on the back burner, but we believe it will now be revisited. It’s an exciting time to see how HMRC will use its new-found powers to break free of EU VAT law, especially where it puts the UK in a strong competitive position. There are a number of obvious areas to focus on, such as the scope of exemption for payment processing and financial intermediaries, the retention and potential expansion of our Terminal Markets Order for commodities and the streamlining of the legislation in the rather complex area of fund management.
What do you know now that you wish you’d known at the start of your career?
Whilst success in a tax career certainly requires in-depth knowledge and expertise, I wish I focused more, at an early stage, not just on mastering my technical craft, but on building relationships and engaging outside of the tax silo – not just with my clients and tax colleagues. I also wish I appreciated the benefits of having good insights across the financial services industry, including the regulatory regime, the products in the market and commercial developments more generally. Joining the above skills with deep financial services VAT expertise certainly goes a long way to helping one become competent and credible in this space.
One minute with Richard Iferenta, Vice Chair of KPMG.
What’s keeping you busy at work?
The work we are doing is very varied and includes dealing with large-scale VAT disputes and appeals in the financial services arena, supporting clients with implementing VAT technology, and using technology ourselves to support the delivery of both compliance engagements and VAT advisory projects.
Some of the specific technical areas we are seeing include the scope of VAT exemption (and HMRC considering its boundaries); the need to ensure that contracts are appropriately structured, not just in the fund management world, but more generally to avoid single/multiple supply risks; and a raft of cross-border issues. Unsurprisingly, we are also doing a lot of work around partial exemption.
Tell us about your role as Vice Chair of KPMG?
It’s a privilege being a Vice Chair, and I’m extremely passionate about making society and the profession more open and inclusive to all. It is rewarding to see Black heritage colleagues at KPMG progressing significantly – over the last two years alone we’ve seen the number of black partners and directors double. We have put in place our Allyship programme which pairs up Black heritage colleagues with partners and directors who take responsibility for coaching, sponsorship and mentoring these colleagues. In our tax practice, we have an initiative to attract more black talent by leveraging specialist recruitment agents, and this is directly sponsored by our head of tax, Vicki Heard. Whilst I am happy that we have started this journey of making our practice more inclusive, there is still much more to do to ensure that everyone can maximise their potential regardless of their background.
I am also focused on ensuring we achieve socio-economic diversity at KPMG, and I’m working closely with the City of London taskforce on socio-economic diversity to bring about change.
Having said all of that, the greatest priority right now is the desperate situation our Ukrainian friends find themselves in. I am proud that KPMG moved quickly in its response and has also committed to supporting charitable efforts in the region. Over the past week, in my current role and as a board member of London First, I have been working with the business community to explore ways of supporting Ukrainian refugees by providing jobs and other economic support. Clearly, this support must also extend to refugees from other jurisdictions.
What should we look out for later this year?
HMRC announced it would be carrying out a review of the financial services VAT regime just before the pandemic. This has rightly been put on the back burner, but we believe it will now be revisited. It’s an exciting time to see how HMRC will use its new-found powers to break free of EU VAT law, especially where it puts the UK in a strong competitive position. There are a number of obvious areas to focus on, such as the scope of exemption for payment processing and financial intermediaries, the retention and potential expansion of our Terminal Markets Order for commodities and the streamlining of the legislation in the rather complex area of fund management.
What do you know now that you wish you’d known at the start of your career?
Whilst success in a tax career certainly requires in-depth knowledge and expertise, I wish I focused more, at an early stage, not just on mastering my technical craft, but on building relationships and engaging outside of the tax silo – not just with my clients and tax colleagues. I also wish I appreciated the benefits of having good insights across the financial services industry, including the regulatory regime, the products in the market and commercial developments more generally. Joining the above skills with deep financial services VAT expertise certainly goes a long way to helping one become competent and credible in this space.
