Leveraging our numerous alliances with the major tax technology and enterprise technology firms, Deloitte can help you explore various tax-specific opportunities with regard to tax technology and financial systems.
Tax departments today often face significant resource constraints, requiring an increased focus on efficiency and effective use of technology to streamline their compliance and reporting processes. Overreliance on spreadsheets, outdated technology, and a lack of integration between tax and finance systems can hamper a tax departments’ ability to obtain and analyse the data needed for timely and accurate tax compliance and reporting.
Tax Technology Architecture
Deloitte assists tax departments in the design, selection, and implementation of tax software for global and local purposes for both direct and indirect taxes, through our comprehensive knowledge of the tax technologies available. Our services include helping businesses make the right technology choices and then configuring and integrating those choices through the entire record-to-report business cycle for tax. Some examples include:
- Global tax management systems which assist with tax governance and allow companies to manage and monitor their global tax obligations, automate the collection of data from their subsidiaries and centralise the storage of tax documentation
- Tax data analytics which provide analysis and visualisation tools to help an organization’s tax function make smarter, real-time decisions to improve business performance and drive strategy
- Tax enabled ERP which help companies to ensure tax requirements are accurately and appropriately reflected in their ERP systems to maximise compliance and reduce business risk
Global Tax Management Systems
Manual approaches to obtaining insight into global tax operations are not uncommon, for example maintaining Excel spreadsheets with the status of global statutory tax filing deadlines or e-mailing global subsidiaries periodicically to request updates on the status of any tax audits or collect other tax information. Due to the growing demands on tax staff time, global companies are increasingly relying upon software systems to automate tax management activities at domestic, regional and global levels.
These tax management systems can provide various benefits such as standardise and measure processes, centralise key tax documentation such as submitted tax returns, provide insight into tax filing status and automate data collection from global subsidiaries. Once implemented, tax management systems can be operated with little maintenance so can become invaluable for companies with limited resources in their central tax team but desire greater levels of tax governance, visibility and control.
We work with technologies such as Microsoft SharePoint and also implement third party vendors solutions. For example, Deloitte is a certified implementer of Thomson Reuters ONESOURCE Workflow Manager which is used by a number of leading Japanese companies.
Tax departments have always been large consumers of business data but the use of that data has generally been restricted to support tax compliance and reporting activities. Developments in technology are helping tax departments to harness value in the data by gaining new insights which can help drive business decisions.
Data analytics combines tax technical knowledge, large sets of data, and new technologies such as visualization tools to generate insights and deeper understanding. Data analytics can help an organisation’s tax function make smarter, real-time decisions to improve the performance of their business and drive strategy.
Deloitte helps organisations to leverage data analytics for tax. We have experience with proprietary tools and other data analytics platforms such as Tableau and Qlikview. We have applied data analytics in a variety of scenarios for our clients:
- Indirect tax & customs – dashboarding, exception reporting, identification of unclaimed input tax, Free Trade Agreement analysis (Trade Compass(Japanese), Global Trade Radar)
- Transfer pricing – BEPS Action 13 country-by-country reporting (CBC Digital Exchange(PDF)), operational transfer pricing
- Expatriate and payroll taxes – dashboarding and performance management
- Corporate tax – dashboarding and analyses on tax performance to support effective tax rate (ETR) mangement
Tax enabled ERP
As tax authorities continue to evolve the sophistication of audit and enforcement practices to identify non-compliant activities, businesses must find new ways to manage data more efficiently across increasingly global systems and create operational transformation opportunities.
Tax Enabled ERP provides design and implementation support to help businesses integrate indirect tax (including customs and global trade) requirements into their ERP systems to improve control over tax data, manage potential risks, and enhance efficiency of business processes.
Deloitte provides design and implementation support to help businesses integrate indirect tax requirements into their ERP systems to improve control over tax data, manage potential risks, and enhance efficiency of business processes.