Most tax executives lose the boardroom within the first few minutes by leading with technical detail. By the time the walkthrough is complete, the board has disengaged and the CFO is already frustrated. Isaac Malul, a senior tax and finance executive with experience across Fortune 100 financial institutions, has spent two decades addressing this breakdown. Specializing in complex US GAAP tax accounting, Malul has led enterprise tax provision efforts across the US, Europe, and Asia, navigating some of the most nuanced areas of the discipline. His strength lies in translating dense tax complexity into insights that support stronger executive and board-level decisions.
Boards Care About Why the Tax Rate Changed, Not That It Changed
The first mistake tax executives make is leading with outputs instead of underlying drivers. “Technical teams often get lost in deferred tax carryforwards and uncertain tax position analyses,” Malul explains when coaching tax directors ahead of board presentations. “But in the boardroom, leaders care about why the tax rate changed, not simply that it did.”
Malul begins every board discussion with a different question: what is the economic story behind the numbers? Was there a shift in earnings mix, a change in jurisdictional exposure, or a movement in valuation allowances? These drivers connect tax outcomes to business decisions the board already understands, such as market expansion, product mix changes, or operational restructuring. “Framing the tax provision through that lens allows leadership to connect tax outcomes directly to business decisions,” Malul notes after presenting quarterly results for a financial institution operating across multiple jurisdictions. “That is where real alignment is created.”
Translate Judgment Into Risk Language
The second mistake occurs when tax professionals discuss technical judgment without translating it into risk exposure. Tax accounting is inherently judgment-based, from APB 23 assertions to valuation allowance assessments and transfer pricing reserves. These are not mechanical calculations. They are positions that rely on assumptions, probability, and exposure assessment. Boards do not want technical nuance. They want to understand risk.
“I consistently reframe judgment areas into plain-language risk assessments,” Malul says when advising a multinational client on indefinite reinvestment positions. “For example, we assume indefinite reinvestment of foreign earnings. Here is the cash impact if that assumption changes.” This shift transforms the discussion. Instead of debating accounting guidance, the board evaluates strategic trade-offs. Does the assumption still align with cash repatriation plans? What events would trigger a change? How large is the exposure if circumstances evolve? “This approach allows the board to evaluate sensitivity and downside without having to interpret a tax memo,” Malul emphasizes.
Lead With Narrative, Not Schedules
The third mistake is burying the story in spreadsheets. Every tax provision has a narrative, but it is often lost when presentations lead with schedules and leave context for footnotes.
Malul reverses that order. “When I present to leadership, I start with the narrative,” he explains when describing how he frames quarterly results. “This quarter’s effective tax rate increased due to stronger earnings in higher-tax jurisdictions and a shift in transfer pricing allocation. The data supports the story, not the other way around.” This narrative-first approach makes tax outcomes intuitive and actionable. Board members immediately grasp the drivers, ask better questions, and connect tax strategy to broader business objectives.
Make Tax Accounting Decision-Useful, Not Just Technically Correct
The strongest tax leaders recognize that boards do not need more technical precision. They need clarity around economic drivers, risk exposure, and strategic implications.
“By focusing on these principles, tax accounting becomes not only understandable, but decision-useful for senior leadership,” Malul concludes.
Connect with Isaac Malul on LinkedIn.
