Bring the future into focus and move ahead of uncertainty
The US policy environment is rapidly evolving as demand for oversight grows in areas where regulation has been light while policymakers pursue a mix of rollbacks and tougher trade moves elsewhere. The smarter approach to policy flux takes shape with an integrated view of risk and tax, controls and compliance so that the company can anticipate and respond strategically. PwC brings together decades of real-world experience across privacy, risk, regulatory, tax, forensics and controls.
Policy competition opens up opportunities to shape the future.
Being a smarter risk taker through digital transformation.
Compliance on the forefront: Setting the pace for innovation.
Was achieving a global view of intercompany execution in sight?
It was time for a change. Not because things were at a stand-still, but precisely because they were already in motion. Navigating an increasingly complex and highly scrutinized regulatory environment, while undergoing a business model transformation, created significant challenges for Microsoft’s intercompany execution.
The particular challenge the client faced — a common one — was that while corporate tax liability is driven by statutory legal entity results, the design of the systems and surrounding processes was geared towards a consolidated/managerial view. In July 2014 Microsoft’s earnings release included the following statement: “Tax provision adjustment of $458 million, or a $(0.05) per share impact, in the fourth quarter of fiscal 2014 related to adjustments to prior years’ liabilities for intercompany transfer pricing that increased taxable income in more highly taxed jurisdictions (“Adjustment to Prior Years’ Taxes”)”.
We’re ready to help you take on today’s most pressing business challenges. Reach out and start a conversation today.