Tax Strategy, Risk Management and Operating Models

Deloitte advises organizations’ tax departments as they seek to align tax operations to their business strategy often in conjunction with a finance transformation project.

Tax Strategy, Risk Management and Operating Models

Tax departments are required to meet a diverse range of increasing expectations from different stakeholders within the headquartered country and overseas. Requests from tax authorities are becoming more burdensome and tax departments may even become caught amongst the “tug of war” over matters between domestic and foreign tax authorities.

Tax Department


Deloitte supports business in developing and enhancing their tax strategy and policies. We also perform tax process reviews, help implement new tax processes, internal controls and automation processes so that tax departments can proactively deal with a variety of changes and create new value in a more controlled and effective manner.

Development of Tax Strategy and Policies

Monitoring and forecasting regulatory changes around the world, and developing global tax strategy, policies and guidelines aligned with the corporate vision is essential for businesses. Deloitte assists clients in developing such strategies and policies.

Please refer to our Tax Governance brochure for further information.


Implementation of New Organizational Models to Enhance Tax Governance and Control

Limited human resources can both compromise tax governance but also restrict change as those resources are focused on day-to-day activities. In addition, enacting significant organizational changes requires certain skills and support from the appropriate stakeholders. It is therefore essential to take a top-down approach to finance transformation. Insight into the best practices of other Japanese and foreign companies can help stimulate ideas and also provide a means of benchmarking through the use of KPIs and other financial metrics.

Deloitte helps clients strengthen their tax functions through the following steps:

Step 1 – Enhancing the tax function

  1. Identify the necessary capabilities to satisfy the needs of stakeholders inside and outside the organization
  2. Define staff roles and responsibilities

Step 2 – Development of tax processes and management and reporting structure

  1. Develop tax processes for each tax item and area, department and function
  2. Define appropriate reporting structures around core tax operations

Step 3 – Building infrastructure

  1. Build infrastructure that allows monitoring and supporting of all tax related work

- Secure the necessary and sufficient resources

- Implement software systems

- Standardise data formats

2. Enhance the group-wide transparency of tax functions to improve governance

3. Implement appropriate KPIs

- For core tax e.g. Effective tax rate

- For the wider business

- For improving operational efficiency

Application for Electronic Document Preservation

An increasing number of companies are replacing traditional paper archiving with electronic archiving. Deloitte helps clients understand the Japanese electronic archiving requirements, asses their business processes and IT systems for any gaps, and prepare the necessary application and supporting documents for submission to the National Tax Agency.


Measurement of Results Through the Monitoring of Effective Tax Rates

Deloitte helps clients develop tax strategies and policies, improve their tax functions, assess tax risk based on the results of tax health checks and develop safeguards to mitigate these risks. Deloitte works with clients in assessing whether the measures are effective and make appropriate refinements where necessary.