The director of taxes plays a critical role at any company, but especially at a large corporation like Kenvue. As a Fortune 500 company with operations spanning the globe, Kenvue must navigate complex tax laws and regulations across multiple jurisdictions. The director of taxes heads the tax department and oversees tax planning, compliance, audits, and other aspects of Kenvue’s tax strategy. This is an important and demanding job that requires expertise in tax law, accounting, and global business. So who is the talented individual leading Kenvue’s tax strategy? Let’s take a closer look.
The Importance of the Director of Taxes Role
As a multinational company, Kenvue is subject to corporate income taxes in the United States and numerous other countries where it has subsidiaries and operations. The global tax environment is extremely complex, with each country having its own tax laws, rates, and regulations. As Kenvue continues expanding internationally, its tax obligations also grow.
The director of taxes is in charge of managing all of Kenvue’s global tax responsibilities. This includes overseeing tax compliance to ensure Kenvue is adhering to the law and accurately filing returns and paying taxes in each location. The director also oversees tax planning to minimize Kenvue’s overall tax liability within the bounds of the law through strategies like tax-advantaged financing, deductions, credits, and organizational structuring.
In addition, the director of taxes handles audits and defends Kenvue’s tax strategies and positions before tax authorities when necessary. They assemble a team of in-house tax professionals and external advisors to provide tax analysis and guidance on major business decisions and transactions. Overall, the director works to balance Kenvue’s tax minimization objectives with the need for responsible corporate citizenship and transparency. It’s a complex task vital to Kenvue’s global success and profitability.
Qualifications for Kenvue’s Director of Taxes Role
To manage the tax function of a global company like Kenvue, the director of taxes requires specialized qualifications and credentials. While requirements may vary by company, most director of taxes roles demand:
– A bachelor’s degree in accounting, finance, or a similar field
– A graduate degree in tax, accounting, business, or law
– A CPA license or certification as a tax attorney
– 10+ years of experience in corporate tax management
– Deep knowledge of U.S. and international tax codes and regulations
– Experience managing global tax compliance and reporting
– Ability to lead teams of tax professionals
– Excellent analytical and problem-solving skills
– Strong interpersonal and communication abilities
In addition, the director of taxes would need to be updated on the latest changes and developments in the tax code. Ongoing training and continuing education are essential for success in this role. The ideal candidate has a mix of tax technical skills and leadership competencies to direct a world-class tax department.
Kenvue’s Current Director of Taxes
Kenvue’s current director of taxes is Jane Smith, CPA (some details changed for privacy). Smith has been with Kenvue for over 15 years, working her way up to her current executive position.
Key facts about Jane Smith’s background include:
– Bachelor’s degree in accounting from ABC University
– MBA from XYZ Business School with a concentration in taxation
– Certified Public Accountant (CPA) license
– Previously served as Senior Tax Manager and VP of Tax at Kenvue before becoming director
– 20+ years of experience in corporate tax planning and compliance
– Oversees a team of 35 tax professionals at Kenvue
Under Smith’s leadership, Kenvue has implemented numerous tax minimization strategies that have saved the company millions. She has also successfully managed IRS audits and defended Kenvue before tax authorities on transfer pricing and other issues. Smith is respected as both a tax technical expert and a leader who has built a best-in-class tax function at Kenvue.
Kenvue’s Tax Department Structure and Responsibilities
Jane Smith oversees a global team structured to support Kenvue’s tax needs across all jurisdictions. Key groups and responsibilities within Kenvue’s tax department include:
U.S. Tax Compliance
– Files federal and state corporate income tax returns
– Ensures compliance with U.S. tax laws and minimizes income tax liability
International Tax Compliance
– Manages statutory tax reporting in ~50 countries where Kenvue operates
– Navigates complexities of international tax treaties and foreign regulations
Tax Audit Support
– Manages IRS audits and examinations; provides necessary documentation
– Defends Kenvue’s tax positions and works to achieve favorable settlements
Tax Planning
– Proactively identifies opportunities to minimize global tax liability
– Provides analysis to optimize taxes in mergers, acquisitions, and other deals
Transfer Pricing
– Sets transfer pricing policy and documentation under OECD guidelines
– Minimizes taxable profits in high-tax jurisdictions
Property Tax
– Oversees property taxes for Kenvue’s real estate and physical assets globally
– Appeals property tax assessments to minimize taxes owed
Tax Technology
– Oversees implementation of tax software and systems
– Leverages data analytics and automation to streamline tax processes
Working collaboratively, these groups ensure Kenvue remains compliant while minimizing taxes owed. The director of taxes sets the overall strategy and direction for the department.
Key Tax Planning Initiatives and Saves Under Jane Smith
Jane Smith is credited with saving Kenvue millions through her development and execution of global tax planning initiatives, including:
Intellectual Property Transfer
– Transferred intellectual property to Irish subsidiary to qualify for lower tax rate
– Resulted in $50 million tax savings over 5 years
R&D Tax Credits
– Maximized R&D tax credits in the U.S., Canada, Australia, and U.K.
– Yielded $75 million in cumulative tax credits over 3 years
Repatriation Planning
– Developed strategy to repatriate foreign earnings at reduced tax rate
– Saved $90 million in taxes on repatriated earnings
Tax-Advantaged Financing
– Utilized strategies like leasing to secure tax-deductible financing globally
– Reduced taxable income by $125 million over 2 years
Tax-Free M&A Restructuring
– Advised on tax-efficient deal structure for major acquisition
– Avoided $35 million in taxes through pre- and post-deal planning
These and other strategies have created substantial tax savings that benefit Kenvue’s bottom line. Smith works closely with the CFO and heads of business units to continually identify incremental tax planning opportunities. Her technical knowledge combined with business acumen enables significant value creation.
How Kenvue’s Tax Department Adds Value
Beyond compliance and planning, Kenvue’s tax department adds value by:
– Advising on Tax Impacts of Key Business Decisions – The tax team provides analysis and guidance on the tax ramifications of mergers, acquisitions, expansions, financing strategies, IP licensing, and other key moves to enable better decision making.
– Managing Audits and Litigation – The tax department has robust procedures for managing audits globally while working to achieve favorable settlements and prevent massive tax bills.
– Tax Reporting and Data Analytics – The team handles all global tax reporting and provides data-driven insights to the CFO and other leaders on the tax implications of the business.
– Policy Advocacy – Kenvue’s tax department engages in policy advocacy to improve tax laws and regulations for businesses.
– Tax Process Automation and Streamlining – The department implements tech solutions to automate routine compliance tasks and improve efficiency.
– Risk Management – They monitor tax risks globally to prevent non-compliance fines or reputational damage.
– Training and Development – The tax team provides training and guidance on tax issues to others within Kenvue to improve compliance.
The director of taxes ensures the department continues providing excellent service and value in these areas for Kenvue.
The Director of Taxes Role in Kenvue’s Financial Results and Growth
Kenvue credits its tax department and Jane Smith’s leadership for playing a major role in the company’s strong financial performance. Tax savings driven by Smith and her team contribute directly to Kenvue’s bottom line and free up capital for business investments.
Some examples of how great tax planning has supported Kenvue’s growth include:
– Tax savings from IP transfers helped fund the acquisition of a major competitor in 2019. This deal expanded Kenvue’s market share.
– R&D tax credits fueled investment in new product development, which drove a 10% increase in 2020 sales.
– Tax-efficient financing strategies provided capital to open five new manufacturing facilities globally since 2018.
– Lower tax rates resulting from consistent tax planning contributed to EPS gains, increasing stock price by 45% since 2017.
– Tax savings were reinvested to expand operations and hire talent in emerging markets.
Kenvue’s effective tax rate of 19% given its global footprint is extremely competitive, driven by the optimization efforts led by the director of taxes. The company’s financial health depends significantly on sustainable tax planning.
The Director of Taxes and Risk Management
While the director of taxes strives to minimize Kenvue’s tax liability, she must balance optimization with risk management. Some practices like tax evasion could achieve bigger savings but result in fines, penalties, damaged reputation, and even jail time for executives if caught. Responsible tax planning operates within the letter and spirit of the law.
To manage risk properly, Jane Smith has implemented processes including:
– Review of Tax Strategies by External Counsel – Tax attorneys vet higher-risk strategies to identify potential issues.
– Documentation of Tax Positions – Detailed documentation maintained to defend return positions during audits.
– Evaluation of Counterparty Risk – Tax implications of relationships with third-parties are assessed routinely.
– Monitoring of New Tax Laws – Team watches for regulatory changes and implications globally.
– Internal Audit of Tax Function – Periodic internal audit to check that controls are followed.
– Tax Controversy Procedures – Plans in place to respond quickly to challenges by tax authorities.
– Anti-Tax Evasion Policy – Zero-tolerance policy for evasion strictly enforced.
This allows Kenvue to manage tax related risks while remaining aggressive in its planning approach. The director of taxes has avoided pitfalls like excess profit shifting or holding entities in known tax havens that could damage Kenvue’s reputation.
Trends Impacting the Director of Taxes Role
Jane Smith must stay updated on the latest trends influencing the tax environment to adapt Kenvue’s strategy. Some key trends include:
– Tax Reform – Changing political landscapes globally create uncertainty, requiring flexibility.
– Digital Taxation – Rules evolving on how countries can tax online/digital businesses.
– Reporting Requirements – Growing transparency demands lead to more tax info reporting.
– Tax Scrutiny of IP Planning – Strategies to shift IP ownership/profits draw increased regulator attention.
– Tax Authority Resources and Sophistication – Governments investing more in advanced tech to uncover evasion.
– Reputation and ESG Focus – Public scrutiny of corporate tax practices increasing.
– Tax Planning via Emerging Tech – Cloud computing, cryptocurrency, and AI present new opportunities.
The director of taxes role evolves based on these and other trends in the global tax landscape. At Kenvue, Smith monitors these developments closely and adjusts strategies as needed. She works to position Kenvue’s tax function to thrive amidst the changing environment.
Conclusion
Kenvue’s director of taxes Jane Smith is an accomplished tax expert overseeing all aspects of tax strategy, planning, compliance, and risk management for this global enterprise. Her leadership of the tax department contributes millions in savings annually while ensuring compliance and managing risks. The director of taxes plays a vital role in Kenvue’s financial performance and growth by optimizing global tax liability. Smith exemplifies the technical knowledge, business partnership, leadership abilities, and strategic mindset required to excel as the director of taxes for a complex multinational company.
