Blackline logo
BlackLine + FourQ

FourQ acquired by Blackline, leading financial close and accounting automation platform.  Learn More.

CONTACT US
BLOG
Back to Blog
Intercompany

How Misaligned Intercompany Processes Affect Company Tax Operations

Published in Volume 125 of Tax Notes Federal, Dirk Van Unnik, Vice President of Tax, explains how intercompany accounting impacts tax operations and can increase scrutiny from authorities.

Dirk Van Unnik
Dirk Van Unnik

Apr 25, 2022

For intercompany accounting — the management of financial transactions between separate legal entities that belong to the same corporate group — misaligned processes and muddled information negatively impact a multinational’s tax operations and increase their tax bills.

Tax authorities’ most effective way to generate tax revenue from intercompany transactions is by scrutinizing transfer pricing and extracting additional indirect taxes. For this reason, intercompany accounting has come under scrutiny by governments globally. Even though most work hard to toe the line, multinationals worry that they cannot defend their intercompany decision-making without meaningful improvements in their intercompany processes and reporting.

tax notes 6

Dirk Van Unnik

Dirk Van Unnik, Vice President, Tax Intercompany at BlackLine, helps multinational businesses solve complex tax and operational issues with business realities and processes in mind. Dirk has decades of experience serving as worldwide tax leader of shared services centralization and expat management at GE. There and in leadership roles at Tesla, UPC, Boehringer Mannheim and Coopers & Lybrand, he has been the lead contact for government, directed the tax and legal structures of rapid new country rollouts, and developed and implemented a corporate cost charge-out IT system across 60+ countries. Dirk earned a Master of Science in Business Economics, Accounting & Finance and a Master of Law (LLM) in Business Law from Erasmus University Rotterdam.

Don’t Delay Your Intercompany Journey During Transition to SAP S/4HANA

Don’t Delay Your Intercompany Journey During Transition to SAP S/4HANA

Examining intercompany processes and implementing a comprehensive intercompany solution will make any ERP adoption or transition more succe...

Why ERP Systems Inherently Fail to Address Intercompany

Why ERP Systems Inherently Fail to Address Intercompany

For some time, executives held the belief that the next generation of ERPs would finally solve intercompany challenges. That’s now recogniz...

Former Fortune 500 Executive Details His Intercompany Journey and What it Takes to Drive Change

Former Fortune 500 Executive Details His Intercompany Journey and What it Takes to Drive Change

Mike Polaha, SVP of Finance Solutions and Technology at BlackLine shares his experiences overseeing the transformation of intercompany acco...