How one acquisition sparked a co-sourced tax revolution

Discovery Inc., the multinational media group, acquired Scripps Networks in 2018, and used the resulting change as an opportunity to reimagine its tax function. As Discovery licences and distributes its IP around the world, the tax function has to wrestle with fast-changing tax challenges, both internationally and locally. The new solution, co-sourced with the EY organization, was designed to be agile and dynamic – not just to meet this evolving challenge, but to keep Discovery at the cutting-edge of tax for decades. The decision to work with the EY organization, and to harness its TFO solution, began as a defensive move – a way for Discovery to relocate its headquarters without having to disband its talented tax team and rebuild from scratch. It soon became a value-add move too: by migrating three-quarters of its tax talent and function to the EY organization, in a one-team solution, Discovery could retain its brightest people, while benefiting from the huge investments the EY teams have  made in its professional services cloud technology and other tools, as well as its global connections. This managed services solution brings both security and new opportunity, leaving Discovery free to focus on generating value through its products and services, knowing its tax function remains a step ahead.

Key takeways:

Moments of change can present the perfect chance to reimagine the tax function –as a cutting-edge solution.

Companies aren’t stuck with the difficult choice of running everything in-house or outsourcing their entire tax function. By creating a co-sourced managed services solution with the EY organization, a company can increase its focus on its own strengths, while benefitting from EY deep investment in professional services cloud technologies and other tools. The EY organization one team approach makes the entire process feel seamless.

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