TaxThe performance of our Tax practice was stable. Mandatory audit rotation and new independence regulations led to a significant loss of business but this was offset by some great wins and new service offerings. As a result, revenue was slightly higher. This is testament to the broad-based strength of our tax consultancy services. Revenue rose by €2 million (1%) to €255 million on a slight increase in hours and rates.
Our International Tax Advisory practice had a solid year with revenue of €51 million. Tax transparency and documentation projects increased during the year as a consequence of the Base Erosion and Profit Shifting (BEPS) rules. Last year we developed an innovative country-by-country reporting tool which shows at a glance how a business’s income, revenues, financial performance, employees and income tax are distributed across the world. Many aspects of BEPS are concerned with transparency, and this tool enables more strategic discussions with clients about tax strategy, tax operations, tax risk management and even business operations that are influenced by tax.
Our Global Compliance & Reporting practice achieved further growth in global engagements. Multinationals are giving ever higher priority to compliance and are increasingly opting for a global rather than a national service provider to standardize their compliance processes. In recent years, increased automation has triggered a shift in the practice away from filing single tax returns towards the delivery of global tax compliance services.
Transaction Tax had an excellent year in a firmer transaction market and reported €3 million (38%) growth and broke the €10 million revenue barrier.
Indirect Tax remained flat at €29 million and Business Tax Services saw a contraction triggered in part by an increase in the insourcing of tax work by our clients. The contraction was only partially offset by more work for government bodies following the introduction of corporate income tax for municipalities, provinces, water authorities and other public bodies as from 1 January 2016.
Human Capital had an excellent year. Despite the loss of business due to mandatory audit rotation for public interest entities, it generated growth by acquiring new business. We merged our Human Capital activities with Advisory’s People & Organizational Change services during the year to create People Advisory Services (PAS). We can now offer a proposition that seamlessly integrates global mobility, workplace effectiveness and talent and remuneration. PAS reported solid growth of €3 million (9%), lifting its revenue to €40 million.
Our long-term strategic alliance with Holland Van Gijzen Advocaten en Notarissen LLP turned in a solid performance, following strong growth in 2014/2015. Revenue in the Law practice was stable at €46 million.
The total average workforce at Tax increased from 910 FTEs to 946.