Total cost to perform the process group "manage taxes" per $1 billion revenue

This measure calculates the total cost per $1 billion revenue to estimate the organization's periodic tax liabilities and ensure that appropriate taxing authorities receive tax return filings/payments when due. The total cost is the sum of outsourced, overhead, personnel, system, and other costs. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the "manage taxes" process.

Benchmark Data


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Measure Category:
Cost Effectiveness
Measure Id:
Total Sample Size:
179 All Companies
Key Performance

Compute this Measure

Units for this measure are dollars.

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Total cost to perform the process group "manage taxes" / (Total business entity revenue * .000000001)

Key Terms

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Process Cost Components

Total cost for a process, process group, or function consists of the following five components.

Internal/In-house operating cost consists of the first four components (personnel, systems, overhead, and other).

Personnel Cost

Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.

Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.

Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.

Systems Cost

Systems costs include all expenses, paid or incurred, in conjunction with:
Computer hardware or computer software acquired by the organization or provided to the organization through service contracts.

Any related costs to process, service and maintain computer hardware or computer software. The costs of providing and maintaining services for each applicable process (e.g., computer system(s) processing (CPU) time, network/system communication charges, maintenance costs for applications and data storage). This includes the costs related to LANs, WANs, etc. This does not include one-time costs for major new systems developments/replacements. Consultant fees should not be included in depreciation of new system implementations. Include only those costs that occur more than six (6) months after implementation, as normal system maintenance costs. Any systems cost (e.g., maintenance) which is outsourced to a third party supplier should be captured in the separate cost category labeled outsourced cost.

Systems cost should include all salaries, overtime, employee benefits, bonuses or fees paid to full-time, part-time or temporary employees or independent contractors who perform services relating to computer hardware, computer software, processing or systems support.

Overhead Costs

For the purpose of this study, provide the total actual overhead costs for the year related to the specified process. These are costs that cannot be identified as a direct cost of providing a product or a service. Include the primary allocated costs such as occupancy, facilities, utilities, maintenance costs, and other major costs allocated to the consuming departments. Exclude systems costs that are allocated, since these will be captured separately as systems cost.

Other Cost

Other costs are costs associated with the specified process, but not specifically covered in personnel cost, systems cost, overhead cost and outsourced cost in this questionnaire. These other costs include costs for supplies and office equipment, travel, training and seminars. Include the cost of telephones, except for that portion captured in systems cost.

External/Outsourced Cost

In determining outsourced cost, include the total cost of outsourcing all aspects of the specified process to a third-party supplier. Exclude one-time charges for any type of restructuring or reorganization. Outsourced costs should also include costs for intracompany outsourcing (i.e., reliance on a shared services center or other business entity).

Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

Cost Effectiveness

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Measure Scope

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Cross Industry (7.3.0)

  • 9.9.1 - Develop tax strategy and plan (10765) - Setting targets for periodic tax liabilities. Assess the tax impact of various activities such as the acquisition or disposal of fixed assets or a deliberate change in number of employee.
    • - Develop foreign, national, state, and local tax strategy (10927) - Developing a tax strategy for foreign, national, state, local administration. Set up tax strategies for foreign trade in imports and exports and at national, state, and local level.
    • - Consolidate and optimize total tax plan (10928) - Combining and enhancing a rational analysis of a financial condition or plan from a tax perspective in order to align financial goals through efficient tax planning.
    • - Maintain tax master data (10929) - Maintaining a master file about the rational analysis of a financial condition or plan from a tax perspective in order to align financial goals through efficient tax planning.
  • 9.9.2 - Process taxes (10766) - Processing the taxes of the organization in line with the regional taxation structure, including corporate, property, excise, and service taxes.
    • - Perform tax planning/strategy (10930) - Creating and implementing strategies for taxes to be paid or collected by the business.
    • - Prepare tax returns (10931) - Preparing and submitting tax reports for every employee to the tax department in order to show the tax paid and deducted from their salaries in the year.
    • - Prepare foreign taxes (10932) - Preparing reports about paid or accrued foreign taxes to an overseas country.
    • - Calculate deferred taxes (10933) - Calculating the income that has been realized when the tax on that income has not.
    • - Account for taxes (10934) - Managing the organization's financial accounts for the purpose of taxation. Prepare and maintain the tax paid by the organization to the country they have business in.
    • - Monitor tax compliance (10935) - Checking and correcting the tax policies according to the rules and regulations set by the organization.
    • - Address tax inquiries (10936) - Addressing any tax queries by any regulatory or government authorities. Review historical records related to taxation within the organization in order to respond to queries.