at
Atlantic Richfield in Los Angeles, CA. His
responsibilities at Atlantic Richfield included
federal, state and international tax planning
for the refinancing/marketing division of
the company. Steven also held the role of
International Tax Manager at Deloitte &
Touche, Los Angeles. Steven received a Bachelor
of Science, Business Administration from the
California State University at Los Angeles
in 1988 and a Masters in Business Administration
from University of California at Los Angeles
in 1996.
(KJ): What was your motivation to leave
the US and work in the Asia Pacific region?
(SS):
Prior to working for HP, I handled international
taxes with an Asia focus and traveled to
this region extensively. I was impressed
by the vibrant economies and opportunities
for tax professional presented here, especially
China. When I found out that HP was looking
for a Greater China Tax Manager position
in Beijing, I jumped at the opportunity.
(KJ): What advice would you give anyone
considering a tax career in the region?
(SS):
Asia is a very diverse region in terms of
tax regimes, so a balance of breadth and
depth in knowledge and experience is important.
My typical day, for example, is split between
working on a Japan tax audit and reading
up on the latest OECD study on software
characterization. A regional position requires
me to know a little about a lot of things.
For someone early in their career, gaining
as broad an exposure both from a technical
and geographical perspective will be helpful.
Professional firms are a great start, so
are companies with diverse operations such
as HP.
(KJ): What changes have you experienced
in the region over the years?
(SS):
I think the globalization of economies had
a dramatic impact on Asia. Since I moved
here in 1999, China has established itself
as the factory to the world and India now
plays the same role for the process outsourcing.
These are certainly exciting economic developments;
however, it also presents tax professionals
with unique challenges. For China, the tax
law itself is quite simple. Instead, the
system places reliance on interpretation
of the law by local tax officials that can
differ significantly among the provinces.
Long term tax planning is also difficult
because of the uncertainty created by the
long discussed China tax form, especially
with regards to the sustainability of tax
incentives. Fortunately, it appears that
a new law will be passed this March which
should lift much of this cloud. India’s
challenge is a bit different. The country
has well developed but incredibly complex
tax laws, compounded by a Byzantine litigation
system.
(KJ): What knowledge and experience have
you gained working in the region that you
could not have gained from doing the same
work from headquarters?
(SS):
The two and half years I spent in China
were an invaluable learning experience when
it comes to navigating within the country’s
system. It takes relationships and local
culture knowledge that one cannot cultivate
by just taking annual trips. Since it is
not feasible to live in a different country
every year, I now get on the ground experience
by focusing my traveling to one to two countries
a year based on needs. Although I am still
a novice on taxation in places like Japan
and Korea, I certainly know a lot more than
what I used to. This kind of intensive learning
through frequent visits is just not feasible
from the US given the distance.
(KJ): What has the cultural impact been
to you and your family?
(SS):
I was single before moving here to Asia
and met my wife in Beijing. Our first son,
Ryan, was born in Beijing and our second
son, Regan, was born in Singapore last April.
As I always tell people, the most valuable
thing I gained from Asia is a great family!
Speaking of family, their support is crucial
to succeed in a position like mine because
of the traveling and late night phone calls.
(KJ): How do you stay connected to headquarters
when you are working from the region?
(SS):
We have management meetings four times a
year, and my boss and I talk on the phone
on a weekly basis. In addition, I tend to
visit the US at least once a year for my
continuing education and always try to stop
by Palo Alto, CA. I work with the non-tax
folks at headquarters quite a bit and during
these visits I also try to “walk the hall”
and say hello to people. Despite advancement
in communication technology, I think it
is still human nature to work better together
when there are faces to go with names.
(KJ): What future challenges to you see
for anyone stepping into a similar role
in the region?
(SS):
For someone new in this role, work balance
can be a challenge, since the traveling
and late night calls will likely be even
worse in the beginning. For jurisdictions
like China and India, managing remotely
can be daunting; good internal resources
will make navigating the complexities a
lot easier. In terms of future technical
development, I believe transfer pricing
will play an increasingly central role in
tax audits. For multinational corporations
this is a particular challenge, since many
Asia jurisdictions may not fully adhere
to global standards such as OECD nor have
well developed Competent Authority procedures.
(KJ): What career equity (value) have
you gained from working in a regional location?
(SS):
Asia is becoming more prominent both as
a market and source, and there seems to
be an increased demand for tax professionals
with experience in this region. The opportunities
are not limited to Asia based positions;
I am seeing more multinationals anchoring
some of their worldwide operations in Asia
and looking for tax professionals back home
with relevant knowledge. Aside from the
Asia experience, I think managing multiple
jurisdictions, a diverse group of employees
and cross border transactions are all skills
that are portable. All three of my predecessors
at HP have gone on to bigger and broader
roles with Fortune 500 companies when they
returned home.
(KJ): Steven, thank you for the time you
have taken to answer these questions. Your
perspective is very valuable and we appreciate
the time you have taken to share your experience
with us.
Kathleen
Jennings (KJ)
Editor, The Tax Intelligence Report
Kathleen@etsearch.com
Steven
Shee (SS)
Asia Pacific Tax Director, Hewlett Packard
Singapore, Asia
Steven.Shee@HP.com
