An interview with Jeroen Jager, Group Tax Director Royal Boskalis Westminster NV
Throughout May & June, Sal Partners is sharing the views of several influential figures from across the Dutch market. In our latest “Insights” publication, Jeroen Jager, Group Tax Director Royal Boskalis Westminster NV, has shared his thoughts on the impact of the current pandemic, including areas for consideration to ensure the function is best prepared for what lies ahead.
What is your view on the related covid-19 measures announced by the Dutch government?
I believe the Dutch tax-related COVID-19 measures are adequate and were published promptly. Understandably, the main objective is to support small and medium-sized companies and self-employed entrepreneurs. However, many Dutch-based multinationals may also be heavily impacted and need support.
How do you balance risk whilst taking advantage of current opportunities, and how has this changed due to the pandemic?
I believe you should always make a balanced decision; the current situation has not changed this. In my view, there will be more risks and fewer opportunities during and after the current crisis. Avoiding or reducing double taxation has replaced seeking tax planning opportunities.
At times of such “crisis”, cash is king; how is the tax function supporting this?
As part of the broader Finance department, the tax function is expected to contribute its share. This is the case now more than ever. We continuously monitor our group’s tax payable and tax receivable positions to ensure we have the most optimal cash tax position. This is not limited to corporate income taxes but also indirect taxes.
Is there a moral obligation to look critically at measures – such as covid-19 extension of payments – should the company utilise these even if not intended?
Most measures are generic, and some companies may need more support than others. It may also depend on the specific situation, the market conditions, etc. Every company will consider this before deciding to apply for relief.
How has the current pandemic impacted existing transfer pricing policies, and how will this affect your documentation process?
I haven’t seen much impact thus far. However, I expect that there will be even more pressure than in the past to have adequate documentation, given that tax revenues globally are likely to go down due to the crisis. Local governments will be aggressively scrutinizing intra-group transactions. I anticipate an increase in audits over the coming 12 months, something we must be prepared for as a function.
How does the group ensure robust compliance and administration focus during such times?
With modern communication and emerging technologies, we can manage our processes as if there were no crisis. Given the current climate, there is an increased emphasis on active/formal communication. However, this has always been vital to ensure tax remains connected with the business.
Our team spirit is powerful, and we have built strong relations with the business, which helps us continue with our daily work. In addition, our positive, healthy relationship with the Dutch tax authorities and the information and support we receive from our external tax consultants are of real benefit.
Our main goal is to ensure that we can continue to support our business activities in the best possible way.
SUMMARY
It feels that we are in the eye of the fiscal storm. We will need to be prepared for every scenario, given it is impossible to predict the global impact of this crisis on the tax community. Local legislative changes due to protectionism and an even greater focus on transfer pricing will most likely arise. We should be able to explain our tax position simply, transparently, and we will need to document/explain our position well. But even then, I expect the risk of double taxation will increase.