Cross-border Tax Talks

After-Tax KPIs:  A SVP of Tax’s perspective 

Doug McHoney (PwC’s International Tax Services Global Leader) is joined by returning guest Tadd Fowler, Senior Vice President, Treasurer, and Global Taxes at the Procter & Gamble company. Doug and Tadd discuss US tax policy after the Tax Cuts and Jobs Act, the OB3 package’s priorities and fixes (including interest expense apportionment, GILTI and FDII changes, and maintaining competitiveness), and why certainty still depends on ongoing policymaker education. They examine the OECD Pillar Two ‘side‑by‑side’ concept, the daunting Pillar Two compliance overlay on US rules, and P&G’s own Pillar Two posture. They also cover operating‑model design, incentives and foreign direct investment, how AI augments rather than replaces decisions, and the tax team’s priorities—business partnership, compliance productivity, people and capabilities, and advancing tax certainty through transparency and cooperative programs. 

• 00:45 - Introduction:  Tadd’s 4th visit to the podcast 
• 03:55 - Tax agenda: US tax policy, OB3, Pillar Two, P&G’s global tax approach, talent.  
• 04:45 - Post‑2017 landscape: rate cut to 21%, reduced friction for accessing foreign earnings, stronger US competitiveness.  
• 06:50 - Disproportionate US growth since 2017: revenue, employment, and capital investments follow demand.  
• 08:30 - After‑tax KPIs: P&G management measured after tax, aligning investment choices with shareholder outcomes.  
• 10:50 - OB3 overview and business priorities: preserve competitive corporate rate, modernize international rules. 
• 12:45 - Specific fixes: improved GILTI architecture and interest expense apportionment; FDII and incentive alignment.  
• 13:45 - ‘Permanence’ is political: leadership expects continued debates given fiscal pressures and electoral cycles.  
• 16:20 - Engagement abroad and at home: educate policymakers with a pro‑growth, economy‑wide lens—not company one‑offs.  
• 19:00 - Why side‑by‑side: US already stacks robust anti‑deferral/anti‑base‑erosion rules; layering more adds complexity.  
• 22:00 - Compliance reality check: Form 5471 expansions, foreign tax credit intricacies—and a US return now 15–16k pages.  
• 23:50 - P&G and Pillar Two: heavy compliance investment; modest financial impact; support for administrable, harmonized outcomes.  
• 26:50 - Foreign Direct Investment: incentives will adapt; sovereignty and ‘appropriate’ aid will stay contested.  
• 28:50 -From ‘mini‑companies’ to global categories: regional HQs, centralized brand equity, scaled supply chains.  
• 32:00 - AI’s role: better data and speed, but humans still make the consequential calls.  
• 35:20 - Tax priorities: business partnership; compliance productivity; policy vigilance; people; certainty.  
• 37:25 - Certainty tactics: exceptional compliance, transparency, APAs, and cooperative compliance programs.  
• 38:30 - Data advantage: one ERP and a single source of truth enable quality and consistency.  
• 40:00 - Skills that matter: passion, communication, technical breadth, comfort with gray, and a growth mindset.  

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