Taxing exercise -1 ëp 10 ri organization The formation of Rabobank International, the merger agreement with Robeco, and the rapid expansion in the bank's foreign network are profound stages in a strategy of global metamorphosis. Behind our new name, our new partner, and the dynamic proliferation of new foreign offices, however, lie complex fiscal challenges as well.The bank's formal tax structure - for regulatory purposes - has to be just as dynamic as the organization itself. Il„~ The grouping of this expanding network into a coherent and optimal tax regime is a crucial task that is being handled by the tax department based in Utrecht. Employing a staff of 28, the department forms part of the legal and tax division headed by Dick Schijf and falls under the day-to-day management of Jan van Veenendaal. Like many of his colleagues in this department, Van Veenendaal came to the bank after a stint as a corporate tax inspector with the Ministry of Finance. He is convinced that such experience is particularly important in the Dutch context because the fiscal terms and conditions of under which the new multinational structure will operate are negotiated with (rather than imposed by) the tax inspectorate. CLEAR FRAMEWORKS 'We have to work under a legal and fiscal framework of crystalline clarity at all times,' says van Veenendaal. 'Our most fundamental task is to constantly update this framework - which inevitably requires a continuous dialogue with governmental authorities. Needless to say, it helps to know how they think, in addition to clearly understanding of the internal and external priorities of the bank itself.' COMPLEX TASK Given the current spurt of growth and change, this complex task is now occupying a great deal of the department's time. Yet its day-to-day brief is much wider. It is also responsible for managing fiscal matters on behalf of all the affiliated banks, plus subsidiaries like De Lage Landen and Nedship, for advising and facilitating the structuring of individual deals, and for keeping all segments of the organization abreast of important pending legislative change. DYNAMIC ENVIRONMENT For example, the Dutch government has recently proposed important adjustments in the tax treatment of multinationals, as well as changes concerning the obligations of substantial shareholders in Dutch companies. The former adjustment is aimed at making the Netherlands a more attractive environment for multinationals - and it may offer opportunities for the bank's own fiscal position as well. The latter changes, once finalized, will modify the regime under which many private banking clients now work and will thus create opportunities to structure new products and services for those clients. 'The tax environment, like the bank itself, is very dynamic these days,' says Van Veenendaal. 'It is our job to insure that the bank makes the best of this dynamism.' FISCAL OPTIMIZATION As the bank grows outside the Netherlands, its transactions are increasingly multinational. Obviously, when a new office is opened abroad, it has already been carefully structured from a tax point of view. Once the new entity is in place, it is the job of the tax department to insure its fiscal optimization on a continuing basis, in cooperation with local advisers, not only in terms of its structure with respect to local rulings but also in terms of its product offerings and its synergy with the bank network as a whole. EEN ZWARE BELASTING Juridische en Fiscale Zaken houdt zich, naast het geven van adviezen over deals met klanten en het managen van de fiscale aspecten van de aangesloten banken en de deelnemingen, ook bezig met het optimaliseren van de fiscale structuur van Rabobank International. Voor iedere nieuwe buitenlandse vestiging wordt uitgebreid bekeken hoe deze gestructureerd moet worden. Ook de door de Nederlandse overheid voorgestelde wijzigingen ten aanzien van de fiscale behandeling van multinationals alsook voor de verplichtingen van aandeelhouders met substantiële pakketten worden doorgelicht. Daarbij wordt scherp gekeken naar de mogelijkheden die dit biedt voor onze klanten en onze bank. Jan van Veenendaal - building fiscal optimization and support for the network ESSENTIAL COORDINATION Legal and fiscal components of individual deals are becoming more important than ever before. Sometimes, indeed, these issues are the motive force: more and more, deals and products have profoundly tax driven qualities. The tax department can generate increments of added value and also help in the avoidance of punishing mistakes. In the case of a complex structured financing for a corporate cliënt, for example, the account manager, often together with representatives of the cliënt, almost always coordinate their work with the tax department at every stage from inception to execution. The common aim is to guarantee that there is a solid fiscal foundation underlying the ultimate result. GOOD RELATIONS 'Obviously, there is every incentive to organize things for a cliënt in the most creative and beneficial way,' remarks Van Veenendaal. 'Nevertheless, everything has to pass muster as well. We consult with our friends on the other side of the regulatory fence to get advance rulings whenever in doubt. Obviously, good relations with the tax authorities are crucial for our long-term success. As with everything - effectiveness usually lies in judgment and striking the right balance.' Nothing could be more important to the bank's future success than consistently getting this balance right. 'As you can see, we have a great many important issues on our plate,' Van Veenendaal says. 'As our own time becomes more precious, we try to delegate responsibility, and to coordinate as closely as possible with every division in the bank.' Van Veenendaal is now planning to set up dedicated teams with special responsibility for generating detailed recommendations for the fiscal strategy of each new division within Rabobank International.

Rabobank Bronnenarchief

blad 'What's news' (EN) | 1996 | | pagina 10