Behind the scenes, I have had private conversations with many Lead Tax Executives who have shared with me the tax organization has just been reorganized and will no longer report to the CFO. Why these situations occur is uncertain to me. What is certain to me is that any CFO who decides to reorganize the lead tax role reporting to anyone other than the CFO, will ultimately create turnover in this role. The Head of Tax of any organization prefers to work directly with the CFO on business strategy. When the CFO and Head of Tax work closely together they can turn tax into a profit center and not a cost center.

The extraordinary tax executives we have worked with over three decades love their job because they love to increase the company’s profit. By working together, they save their company money that would otherwise be lost to international, federal, state and local tax revenue authorities worldwide. Lead tax executives are serious about saving the company money. The way to build a tax department into a profit center is when a CFO and the Head of Tax (HOT) are strategically working together to improve profits. Why would a company structure the HOT reporting relationship to anyone other than the CFO? Just asking?

If you are a Head of Tax who has found yourself in this situation, please contact me for a complimentary consultation at ki***@******ch.com so I can advise you. You can also reach me at 858.232.4415 to set up a time to speak privately. View www.etsearch.com

If you are a CFO who has recently lost your Head of Tax due to a reorganization, please email me at ki***@******ch.com and I will help you in your search.