Services

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

Services

Deloitte supports business in developing and enhancing their tax strategy and policies. We also help design and 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.

The “Tax Cube,” our analysis tool, supports clients in identifying and analyzing potential tax compliance risks.

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 and ensuring they are appropriately adhered to.

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, the practical experience of staff may be insufficient to enact significant organizational changes. 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 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

Tax Risk Assessments

Our Tax Cube risk analysis tool seeks to identify potential compliance risks around corporate tax, indirect tax, employer taxes and transfer pricing from the perspective of governance, people, processes and data and systems. The results can be used to help identify areas where particular focus may be required and also to develop specific rectification measures.

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 will work with clients in assessing whether the measures are effective and make appropriate refinements where necessary.