By working in an integrated way across multiple tax disciplines, Deloitte offers a holistic approach to an organisation's unique set of circumstances. In conversation with Deloitte Partners Robbert Hoyng and Frank de Bont, and Deloitte Board Member Joritt Volkers, Maurice Schemkes, the Head of the Tax Department at Nederlandse Spoorwegen extols the benefits of the one-stop solution. 

Maurice Schemkes, the Head of the Tax Department at Nederlandse Spoorwegen, Deloitte Partners Robbert Hoyng and Frank de Bont and Deloitte Board Member Joritt Volkers

Integrated for value

Nederlandse Spoorwegen (NS), the Dutch passenger railway operating company, recently appointed Deloitte to help develop and implement a broad Tax Control Framework. The rail company could be qualified as an international operating company with various activities such as public transport, real-estate development, retail and construction. The tax management team asked themselves how they could scope all the tax risks involved in such a diverse expanding organisation.

"As a public serving company, we approached Deloitte because they made it clear that they understand how tax reflects the complexity of our business culture and that we should improve some of our tax procedures in a way that is in compliance with public governance and adds value to the business," says Maurice Schemkes, Head of the Tax Department at NS. "We needed them to really understand the whole picture and deliver a Group tax strategy. We'd worked with external advisors before, but they hadn't focused enough on the overall picture."

From Deloitte's perspective, the tax department should not be a standalone function but an integrated part of the business. Deloitte implemented this integrated approach with the real-estate unit of NS in its report on risk analysis from a financial and tax perspective.

Deloitte also developed a tax dashboard and tax letters for various stakeholders so that the tax department is able to demonstrate the added value to the activities and working capital. With these tools in combination with the increased awareness in tax accounting, the tax department is more proactively committed to roll out the business strategy of NS.

Deloitte's European network also played a pivotal role, by supporting NS' international expansion plans from a tax perspective. "Deloitte also knows what's happening in other European markets on a fiscal level," explains Schemkes, "so they're able to help us act in a more strategic way that helps us plan ahead. A tax control framework doesn't stop at the border!"

The partnership continues today with the various processes running under a system of horizontal monitoring. "All issues such as VAT, payroll tax and functional analysis for each part of the company are reported in quarterly updates, and strategies are updated to account for important changes, such as emerging issues and risks," says Schemkes. "The result is much better operational visibility, numerous savings and greater efficiency." 

About Nederlandse Spoorwegen

Nederlandse Spoorwegen (NS) Groep is the parent company responsible for transporting over one million people a day in the Netherlands. The Company primarily operates passenger trains throughout the country but has expanded into the United Kingdom, Germany and the Czech Republic through its subsidiary NedRailways.