Thursday, October 10, 2013 Transcript by TransPerfect

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CHRISTIAN JANISCH: So, no, I donít think the system has kept up with the changes and

that is in two regards. For one, globalization is too fast for tax authorities and the tax

system to adapt. And the other point, really, is technology. Technology is moving so fast

that it is virtually impossible for the tax world to keep up to pace with that. So thereís

a bit of a disconnect between the development of business models in technology and the tax

world. I think weíre lacking behind, at least, 4 or 5 years.

Well, I think tax directors today need to keep up with a few changes. One, of course,

if the transparency; tax is very much in the media spotlight. So we all have got to learn

how to deal with communications a lot more than we did in the past. Simplify things and

not be too technical. That is very important and everyone in the tax world has got to learn

that. I think the other piece is really keeping up with the fact that taxes is moving from

income taxes more to, sort of, action-based taxes. And that means weíve got to understand

processes a lot more than aggregated tax world that we had before. So this is changing definitely

what is asked from us and the skill set of the people that we are looking for needs to

change with it, as well.

I believe it is a question to be discussed very controversially whether really the tax,

as it is, the tax system as it is fit for purpose to deal with the digital world. If

I discuss with my colleagues there are some that say it is; it just needs smaller amendments

to the existing server systems. Others say it needs a completely new design. And, as

we heard today on stage from Nichola [INDISCERNIBLE 00:01:51] people out there with ideas on how

that might look like. I think itís a debate still to be had. I donít know whether that

where that will exactly lead us, but I think itís a very interesting question; probably

one of the most challenging ones for tax experts these days. We, again, need to make sure that

we donít become too technical about it, but it is a very complicated question to answer

and I think weíll only get to a solution if we discuss properly and analyze properly.

Well itís difficult to say whether it is a concept of new normal at the moment because

it is, again, in constant flux and change. I think thereís a lot of things we need to

adapt to. As I said, much more process focused, much more technology focused, globalized to

an extent weíve never seen before. And all these things are here to stay so thatís the

new normal, but, again, it is changing again and fast. The pace of technology is not slowing

down at all so the new normal might as well be a constant change.

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