Last Word

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

Media 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.

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.

A deep tax-technical understanding is only the starting point when addressing tax changes. Tax professionals gain respect when they can interpret the potential impact on the media enterprise to stakeholders outside of the tax group.

MAKING IT EASIER

In addition to a thorough understanding of tax matters, it’s critical to have a communication style “that can really walk through a transaction in a way that others can understand,” explained Elizabeth Bramowski, chief accounting officer and controller at Entercom Communications.

“Not only does it demonstrate [a tax leader’s] mastery of the topic, but it builds confidence across the organization to gain broader support of the tax strategies and plans,” Bramowski added.

By exercising these skills tax and finance group leaders can build a strong relationship

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 under- can allow business owners to obstanding the tain internal support and approvbusiness activi- al to move forward.” ties and the goals An understanding of tax conof the business owners puts the tax team in the position of being a trusted siderations should be “integrated in every aspect of the company,” added Rutishauser. The implications range from day-to-day advisor.” operations to more complex trans— Steve Gibson, actions, structures or business The Washington Post opportunities. “[Tax leaders need to] apply the tax code and translate that into forward expectations, which can impact earnings and therefore a company’s valuation,” Rutishauser added.

FRONT-AND-CENTER ROLE

With so many exciting opportunities in the developing media financial environment, why should individuals consider a career in tax? “As the complexity and globalization of business continues to escalate, tax provides you with the opportunity to become a subject-matter expert in a field that is increasingly at the center of planning and decision-making,” explained Gibson. “The ideas that can come from a highly effective tax organization that can benefit a company’s bottom line and fuel their strategic growth are endless,” said Bramowski. Daniel McGuire is a partner at KPMG LLP. He can be reached at (703) 286-8275 or dmcguire@KPMG.com.

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