- Hi, I am Jigar Thakkar, a Chartered Accountant who kickstarted his career as a Tax Professional at EY India, consulting over 100 clients from diverse industries.
- However, as a consultant, I was not able to see how my advice translated into corporate action.
- It took me 6 months to transition from tax consulting to industry.
- Here is how I did it.
Backstory
I began my professional career with EY India’s Taxation division. Fast forward to 2015, an exciting secondment opportunity emerged in Dubai.
After a lot of roadblocks, I was selected for the secondment.
There, I helped the Head of Tax set up the tax function in Dubai for ACWA Power, which now is one of the biggest Power and Utilities companies in the Gulf.
After the three-month secondment stint, they asked me to join full-time.
What should I be doing?
When the opportunity with ACWA arose I was an ambitious 22-year-old tax consultant working for the Big 4. However I recognized the chance to contribute significantly and instead of hesitating at the crossroads, I confidently said yes.
In March 2016, I joined ACWA Power full-time.
How did I decide to go from Big 4 to Industry?
Globally, consulting is more about giving practical advice to clients on a particular issue, with certain caveats.
However, as a consultant, you are not always responsible for implementation or execution. You are not responsible for ensuring that a particular project is completed from point A to point Z.
On the other hand, when the tax team gives advice or creates a strategy for the corporate organization, we see the plans getting implemented in real time. You have to be vigilant and not leave it to somebody else to do their job.
This opportunity with ACWA Power ticked marked all that I was looking for:
Working with leadership: First of all, ACWA Power was headquartered in Saudi Arabia, however, all the top management, be it the CFO, CIO, or Head Of Tax were based out of Dubai. That meant I would be working in the same location with the leadership team, helping build the global tax strategy rather than a regional one.
Getting my hands dirty: ACWA Power takes up various projects from government agencies such as the Dubai Electricity & Water Authority (DEWA). This encompasses various tax implications.
We had to ensure that the taxes were optimized and correctly accounted for and that all the risks were correctly highlighted and reported to the entire organization. This meant that the tax team played a very important role and so the learnings would be immense.
Drafting policies: It was at ACWA Power that I realized how a big organization operates at its headquarters, how to influence the entire organization at a policy level, and ensure that the policy is correctly implemented in every subsidiary or every jurisdiction.
New growth opportunities: I implemented Value Added Tax (VAT) for the company.
Even though we were a very small team, we made significant contributions to the organization. I was hungry to learn and took on a lot of responsibilities. Because of that, I was promoted for three years in a row.
In 2019, I got an opportunity to set up the tax function at AIR (Advanced Inhalation Rituals) in the UAE as the Global Tax Head at in the UAE. Then, I was 26 and one of the youngest Global Tax Heads in the region.
Making the switch from consulting to industry
Many individuals are interested in transitioning from consulting to industry, and it is a strategic decision in my opinion.
All this being said, transitioning from consulting to industry was not as simple as I had expected. It took me around 6 months to grasp the essence of corporate thinking and grow out of the consultant mindset.
As a Tax Professional, you should carefully consider your options before making a move.
Choose the right industry
The first piece of advice that I would like to give a tax professional is to try and join an industry where you can add significant strategic value to the organization, rather than just operating in the tax metrics and focusing on compliance work.
That way you would not be able to drive the organization’s operations in any form or shape.
In 2019, I shifted to AIR (Advanced Inhalation Rituals).
Since we focus on tobacco or inhalation-based products and operate in various countries, taxes in those jurisdictions apply to our industry; Indirect Taxes i.e. customs duty and excise play a significant role in the value chain.
When I first joined I had to establish the tax function with the CFO as there was no existing tax team. This was quite challenging but a very interesting opportunity.
Choose the right organization
Unlike in consulting, tax is a support function in a corporate setting. So it can get monotonous.
I know a lot of Tax Professionals who after working in the same company for 5 years, get bored and switch jobs. They don’t see it as a value addition to the company.
That’s why you have to be smart to choose the right organization, where you would be given the freedom to think and a challenge to conquer.
In my case, everything that the company does passes through my desk. Even the CEO and the CFO wouldn’t make any significant decisions without checking with the tax team first.
And that’s my driving force to get up in the morning as the tax function helps add value to the organization.
Have a business mindset
I have noticed that many tax professionals tend to have a funnel mindset.
Their main concern is ensuring compliance and risk mitigation. However, without a business perspective, you may struggle to optimize taxes effectively.
My CFO always mentions, “Business comes first, tax comes second.”
Although it is not a strict rule, you have to be flexible in this field.
Specialization
In large organizations, there are compliance teams, planning teams, and transfer pricing teams.
As a tax professional, you have to first decide whether you want to be an all-rounder or want to specialize.
If indirect taxes are your interest, consider bigger organizations with specialized teams. However, if you want to cover every area, look for smaller or leaner organizations. You would feel more involved in such settings.
However, if you ask me, as a Tax Professional in the industry, you should be well-versed in all different tax areas. You may face situations where advice on Corporate Tax and Indirect Tax is needed simultaneously.
Tax opportunities in the UAE
The UAE presents numerous opportunities for Tax Professionals right now. This was not the case when I first relocated to the country.
With the new taxes being implemented in the UAE such as Corporate Tax, and the Free Zone Laws being introduced, the importance of the tax team has increased manifold.
If you are considering working in the UAE there are a few pointers to consider.
It’s okay to join a level below your current role
I would request you to shift to the UAE with an open mind.
You might or might not get to join at the same level as your previous organization! Why I say might not? Because, you lack relevant local experience.
I suggest you look for a role that has a lot more potential for growth rather than aiming for a particular position.
Learn continuously and you will be able to grow much faster and figure things out along the way.
UAE tax is not that simple
People often mention that the tax system in the UAE is less complex compared to India. That statement is true to some extent.
The tax system in the UAE is drafted more simply. However, the way the tax authority interprets and applies it is not as straightforward.
When it comes to VAT or excise taxes, the UAE tax system is not simply a matter of reading the law. The tax authority has a clear direction they want to follow.
And until the judicial setup for Corporate Tax in the UAE becomes more streamlined, it will continue to be complicated.
This complexity also makes it an interesting system to navigate, as you always have to be on your toes.
Wrapping up
As a Tax Professional, I have to stay updated continuously, as new laws and regulations emerge every now and then in the UAE.
LinkedIn has truly proven to be an invaluable resource in recent times. It’s amazing how nearly 50 people are always sharing new information whenever something noteworthy happens. This has been incredibly beneficial for me as a quick source of updates.
Our team holds weekly sessions where we carefully review tax updates in all the jurisdictions we operate in.
Additionally, we have access to IBFD – a paid tax portal that provides us with a wealth of news on tax updates for specific jurisdictions.
