Circle of escalation: Difference between revisions

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A phenomenon that may happen in an organisation of a certain size and is guaranteed to in a big one, the [[circle of escalation]] resembles a [[4x100 medley relay]], only one where with contestants carry a stick of [[limp celery]] rather than a stiff baton.
A phenomenon that may happen in an organisation of a certain size and is guaranteed to in a big one, the [[circle of escalation]] resembles a [[4x100 medley relay]], only one where with contestants carry a stick of [[limp celery]] rather than a stiff baton.
A [[salesperson]] approaches you with what seems to be a narrow and uncontroversial question — one to which, in your own recollection, the salesperson already knows the answer. This is a sure sign the [[salesperson]] is indulging in some kind of [[compliance arbitrage]] — probably of the less odious kind, where he does present — in several<ref>''Legally'' several that is - in the sense of “not joint”.</ref> instalments — the whole picture to the necessary internal control functions, but in a thinly sliced way so that each is presented only with those facts the salesperson considers germane to its specific decision (and helpful to the salesperson’s cause).


:“''This is okay with me, but you need to confirm with {{tag|Tax}},''” you say, happy that you have passed the tangled skein off your desk.  
:“''This is okay with me, but you need to confirm with {{tag|Tax}},''” you say, happy that you have passed the tangled skein off your desk.  

Revision as of 09:20, 21 April 2017

A phenomenon that may happen in an organisation of a certain size and is guaranteed to in a big one, the circle of escalation resembles a 4x100 medley relay, only one where with contestants carry a stick of limp celery rather than a stiff baton.

A salesperson approaches you with what seems to be a narrow and uncontroversial question — one to which, in your own recollection, the salesperson already knows the answer. This is a sure sign the salesperson is indulging in some kind of compliance arbitrage — probably of the less odious kind, where he does present — in several[1] instalments — the whole picture to the necessary internal control functions, but in a thinly sliced way so that each is presented only with those facts the salesperson considers germane to its specific decision (and helpful to the salesperson’s cause).

This is okay with me, but you need to confirm with Tax,” you say, happy that you have passed the tangled skein off your desk.

Of course, the tangled skein has not magically winked out of existence: it has simply landed on the desk of some poor, overworked blighter in Tax whose aspiration will be exactly the same as yours, and whom, to fulfill it, will take exactly the same approach you did:

There may be an increased risk of retrospective withholding which it is hard to quantify,” she will say (when one gives tax advice for a living one gets adept at saying this sort of thing by rote) “but as long as the desk is prepared to absorb that additional risk then I have no objections to this.

And lo, off the escalation goes to the business. Salespeople, naturally, have but one goal — impregnating their clients — but not in a way that involves assuming any personal responsibility for a transaction which goes wrong. Up the chain it goes, to trading management. Trading management won’t have any idea what absorbing additional tax risk even is, and so will pass it onto the chief operating officer.

And so on.

Eventually it will get to the level of exaltation in the firm wherein personnel known by all — not to their faces — by only familiar versions of their Christian names. Chuck will say, “In principle I would be inclined to be ok with this at this stage, but can you just run this by Chip to make sure they have no issues.”

Chip is the general counsel, a handsome silvered fifty five year-old with the bearing, and legal acumen, of a 747 pilot. You know exactly where he’s going to send it, don't you.

And so the cycle of life turns fully and returns whence it came.

See also

  1. Legally several that is - in the sense of “not joint”.