Taxing times

I HAD given a talk recently at a Management Association and aside from the flurry of questions that followed from experienced professionals; I noticed a number of younger members in the audience talking among themselves while looking at me with some trepidation. While I had been talking about the job market in a depressed economic scenario, and the fact that many graduate students were still confused about the right career path to take, I had expected some questions to come from the student group. I was not disappointed. The questions flew fast and thick, and I was able to put many of the querents right on their concepts. By far the most worried appeared to be those who were opting for their CA articleship, who were confused as to their future in an economy that was bringing no joy to anyone.

My suggestion was quite clear. One thing that is not likely to change is Taxation! Most of their adult lives, professionals and householders alike have been trying to get on top of and look beyond the taxes that they need to pay. Every year sees more taxes and more legislation, and the plethora of works centred around the subject is phenomenal. The normal taxpayer often cannot see what benefit a new law can give him and even oftener, he cannot see how a new law has adversely affected him. Corporate houses often paint themselves into a corner when taxes need to be paid.

There is a burning need for taxation professionals who can decipher the strange new rules that are made public and those who can get around to facing the challenge a fruitful time is assured! Specialising in taxation is not rocket science for a newly qualified CA as they have the requisite skills for the job.

The pay is good, you need to be quick off the mark to keep up with a constantly changing scenario, you get better, the more you specialise and your career will be assured and secure. Young CAs can start on their own, but expecting customers to come pouring in from the very first day is doubtful. Its much better to work for a few years at a financial consultancy, be it big or small.

The job

Your job will be to engineer the best tax plan for your client. It is essential for you to understand the best options, know what is on offer and is legal and be able to explain it all to your client. To help you, CAs must develop considerable people skills, make use of their mental equipment. The job may require you to do something as simple as helping a client to fill in his return, or work out the best plan for his individual case. Discretion is an essential trait to have and the ability to manage your clients should be especially good.

The pay

Tax consultants, the good ones that is, are valued people. They can save millions for their clients, and so, they are handsomely rewarded! Once a CA tax consultant is retained by a number of companies, his income can soar into five figures! The best is that success in one case will assure you success everywhere since most tax saving systems are easily replicated and can be administered without further refinement to other clients.

The challenging scenario

Every year the finance minister's budget speech is awaited by Industry and individuals alike. Many offices grind to a halt when his speech is televised. All corporate planning is based on the outcome and impact of the budget speech, so the environment will constantly change. CA/tax consultants need to be on the ball and adapt rapidly to keep a jump ahead of the proposals that are made in the last week of February. They need to be current and contemporary with the latest rules and regulations that their clients need to be aware of.

Accelerated knowledge

Though tax consultation is a specialised subject in itself, there is something that such experts can `grow' in to. With companies closing down and merging or being taken over all the time, taxation experts can morph into experts in Mergers and Acquisitions, cross-border or cross continental taxation or even into corporate patent portfolio taxation. Dow Chemicals saved $120million in clever management of their patent portfolio thanks to their tax advisors.

Professional growth

Having arrived at the intermediate goal of establishing oneself as a reliable (read money-saving) consultant, the growth from humble associate to a position in management or elevation to a partnership is a natural progression. Should the desire so take you, breaking out on one's own and starting a consultation on one's own is a popular option. From there to being the senior partner and perhaps even the brass-letter name is a small and remarkably swift step! Remember that every company needs taxes to be managed, who better than someone like you to do it for them?

S.RAMANUJACHARYA

professor1@sify.com