Securing tomorrow today Getting more value out of your data. Jan De Clercq Deloitte Netherlands

Transcription

1 Securing tomorrow today Getting more value out of your data Jan De Clercq Deloitte Netherlands 1

2 Warming up 2

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6 . Tax was already a MEGA data user Starbucks dramatic brand value drop OECD BEPS EU per country reporting SAF-T 6 Power of Data What is next?

7 . ITAIDE 7 Power of Data

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9 How does that impact us? 9

10 The tax data sphere In-Country Taxation Sustainable: Automate VAT reporting Enhance insight Tax control framework Optimized cash flow Disruptive: New insights Cash Integrated approach Predictive analytics

11 Let s talk sustainable technology

12 What about VAT data? VAT crosses many processes VAT is a shared responsibility VAT is local and formalistic Master Data P2P O2C H2R B2R Tax Filing Audit and Litigation Value Added Tax

13 VAT organisation in EU Main internal stakeholders for VAT Global Supply Chain and IT Regional Finance Europe European Finance Shared Service Organisation Managing Director / Finance Director VAT Tax Mergers and Acquisitions/ Restructuring Operating Units

14 VAT management risk awareness Increasing global importance of VAT Neutrality of VAT only exists if the whole process is correctly implemented Otherwise an average global VAT risk of 21% on sales and purchases exists If only 1% of 70 billion EUR turnover is incorrectly processed, that means a VAT risk of approx. 150 Mio. EUR.

15 Future Today Yesterday VAT management approach Step 1 Step 2 Step 3 VAT is poorly recognized as a finance nor as a tax topic Step 1 Step 2 Step 3 VAT can be a show stopper VAT Step 1 VAT Step 2 VAT Step 3 Step 1 Step 2 Step 3 VAT is fully integrated in logistic and finance processes... a door-opener for automation, harmonization and sustainable quality

16 Strategy and risks on tax data (why) One common goal: to reduce and minimize VAT risks (VAT Compliance Management) by means of Clearly defined roles and responsibilities Efficient and harmonized processes Optimized ERP-System

17 How to build a VAT Control Alliance with all key partners?

18 VAT action plan example To inform and involve other Stakeholders in time, particularly as implementation partly takes place locally To create awareness for VAT-impacts/VAT-risks for other Stakeholders in their departments To monitor status quo of the agreed project plan Joint exchange of need for further initiatives with VAT impact or involvement of VAT expertise ( Lessons learnt from other projects ) Decisions effects (in particular budget or responsibility)

19 Present Current environment on data analysis Operational reporting Looking back Categorise and assess Understand What happened? Advanced analytics Looking forward Discover and simulate Predict What will happen? Analyse Key performance indicators (KPI s) Information value Enhance Key performance predictors (KPP s)

20 Mission statement VAT TEAM (example) Tax & Finance will have fulfilled its responsibility on VAT control to the businesses when: The ledger is reconciled with the VAT sub-ledgers (e.g. Sales, other inc/exp) There is a detailed closing checklist Each period filing is supported by a signed-off checklist with transparency of roles (who is doing what and when) The material deviations are explained, rationalized and enclosed by the period filing 4 eyes principle is applied to each document which needs approval Business controllers and Sales management inform timely in advance business changes

21 Tax data analytics project approach Scoping and definition of rules Extraction of Data Mapping source data to data model Run tests Analysis of data Result overview and final report Client/Deloitte Client/Deloitte Deloitte Deloitte Deloitte Client/Deloitte Kick-Off Meeting Scoping IT Confirm the IT landscape for the pilot entity (SAP) Confirm approach for data extraction Scoping VAT Define the pilot entity and VAT registration numbers Define critical processes for the pilot entity that require specific attention Finalize detailed project plan Extraction of data Download of data by Client Transmission of Data to Deloitte by Client Preparation / modification of data based on input Client Extraction of data will require the involvement of IT manager and/or Client to make the best download of data as possible Data model Validation of data elements provided Mapping data to Deloitte data analytics model Scripting and design (SAS Script, Qlikview scripting, Qlikview design) Test Run tests in SAS Analysis Identification of test outcomes Validation of patterns Data quality check/plausibility checks VAT specific testing Qlikview Transfer of data and tests results into Qlikview Set up interactivity between test results and data provided Prepare Trend Analysis Report Drafting presentation and report of findings in xls Present results and findings via Qlikview Next steps (out of scope) To be determined based on results of the analytics tool

22 How might this picture look in 2020? VAT reporting automation ERP External Data Sources DATA WAREHOUSE Third Party Stakeholders Indirect Tax Data Analytics Smart Lite Public Data Indirect Tax Data Analytics Smart Advanced P r e d i c t i v e

23 Define a 2020 indirect tax technology roadmap

24 Considerations Get the data Think Profit Center Get Interactive

25 So action : Start here 1 Tools: conduct inventory of analytics technology/ data sources 2 Talent: Yes, you ll need rocket scientists 3 Pilot: Come up with a short list of priority areas to start with 4 Time s up: You re already ready

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