LASTWORD
Catering to the C-Suite
Tax leaders earn respect and a great reputation when they understand the expectations of their company’s top executives. BY DANIEL McGUIRE
M
edia company tax departments face quite the juggling act these days. Staff members need to keep pace with rapidly changing tax legislation and heightened compliance burdens. They must ensure accuracy within the financial statements and decipher the tax impact of disruptive technology that’s transforming the media landscape. All the while, they’re keeping a lookout for opportunities that could further integrate and add value throughout the organization. Teaming on transactions; analyzing the taxability of new services and products; and evaluating acquisitions and divestitures are equally important. They often occur with little advance notice. How do financial leaders manage all that? One session that took place during the inaugural MFM Media Tax Summit delved into the question. The executives who took part discussed the visibility of tax leaders and how they can provide exceptional value to their stakeholders. Here are some of the highlights.
C-SUITE EXPECTATIONS To be considered high-performing, a tax leader must first understand the expectations of the tax function from the C-suite. “First and foremost, it’s about ensuring accurate books and records, timely filings, compliance and defending the audits, as well as providing support, recommendations and value-add in regards to transactions and deal structures,” explained Lucy Rutishauser, executive vice president and CFO of Sinclair Broadcast Group. “Speed, accuracy, quality of work and value-add throughout the organization” are all key qualities for a tax leader to instill in their team, Rutishauser added. At the same time, leaders must look outside the traditional tax role and understand the overall direction of their company and the entire media industry. 34 The Financial Manager • July/August 2021
throughout other parts of the organization. This can enhance the reputation of the tax leader and the entire team. And it may result in invitations to consult on matters throughout the organization. Steve Gibson, vice president, CFO of The Washington Post, noted that “truly understanding the business activities and the goals of the business owners puts the tax team in the position of being a trusted advisor. Being able to clearly distill often-complex and intimidating rules and regulations into understandable action steps “Truly undercan allow business owners to obstanding the tain internal support and approvbusiness activial to move forward.” ties and the goals An understanding of tax conof the business siderations should be “integrated owners puts in every aspect of the company,” the tax team in added Rutishauser. The implithe position of cations range from day-to-day being a trusted operations to more complex transadvisor.” actions, structures or business — Steve Gibson, The Washington Post opportunities. “[Tax leaders need to] apply the tax code and translate that A deep tax-technical understanding is into forward expectations, which can impact only the starting point when addressing earnings and therefore a company’s valuatax changes. Tax professionals gain respect tion,” Rutishauser added. when they can interpret the potential impact on the media enterprise to stakeholders out- FRONT-AND-CENTER ROLE With so many exciting opportunities in the side of the tax group. developing media financial environment, why MAKING IT EASIER should individuals consider a career in tax? In addition to a thorough understanding of “As the complexity and globalization tax matters, it’s critical to have a communi- of business continues to escalate, tax procation style “that can really walk through a vides you with the opportunity to become transaction in a way that others can under- a subject-matter expert in a field that is stand,” explained Elizabeth Bramowski, chief increasingly at the center of planning and accounting officer and controller at Entercom decision-making,” explained Gibson. Communications. “The ideas that can come from a highly “Not only does it demonstrate [a tax effective tax organization that can benefit a leader’s] mastery of the topic, but it builds company’s bottom line and fuel their straconfidence across the organization to gain tegic growth are endless,” said Bramowski. broader support of the tax strategies and plans,” Bramowski added. Daniel McGuire is a partner at By exercising these skills tax and finance KPMG LLP. He can be reached at (703) 286-8275 group leaders can build a strong relationship or dmcguire@KPMG.com. One area of concern relates to tax authorities, both domestic and abroad, who have attempted to broaden the tax base in response to the expanding reach of media companies. There are ways to confront new or expanded taxes on digital services, products and even advertising. It requires an intricate knowledge of media offerings, the potential application of these taxes and the ability to pivot quickly to determine the impact on the organization and its customers.
