2017 Tax Management Consulting Conference Tax technology. Deloitte, Kuala Lumpur 12 July 2017

Transcription

1 2017 Tax Management Consulting Conference Tax technology Deloitte, Kuala Lumpur 12 July 2017

2 Agenda Introduction to tax technology 3 Examples of tax technology in action: 7 - Tax compliance and reporting - Tax planning and analysis - Tax risk management Developing a tax technology roadmap 22 2

3 Introduction to tax technology 2017 Deloitte Global Tax Center Asia Pte. Ltd. Tax technology 3

4 Introduction to tax technology Many businesses see high potential benefits using technology in different areas of tax. 66% 64% but few are actually realising those benefits 40% 32% 20% 22% 14% 12% High current benefit High potential benefit Source: Deloitte Global Market Research, 2016 Process efficiency Quality and accuracy of data Risk management Planning and business decision making 4

5 Introduction to tax technology Tax technology architecture Source Business Systems Tax Data Stores Reporting Key Outputs TAX DASHBOARD Workflow, Status, Documents, Analytics Consolidation Forecasting Forecasts Single Entity Tax Risk Reports ERP Provisioning Provisions Tax Determination Transfer Pricing Returns, Forms E-filings Accounting s/w Consolidated Tax return s/w CbC Reporting TP Documentation Excel Stat Account s/w Other Systems Enterprise Report Writers Statutory Accounts Work Papers Master Data Management 5

6 Introduction to tax technology Tax technology architecture video 6

7 2017 Deloitte Global Tax Center Asia Pte. Ltd. Tax technology 7

8 Tax compliance and reporting Challenges Characteristics of enabling technology Significant volume of data Regular, time consuming processes ERP sensitisation Data validation Errors from manual manipulation Reliance on non-tax personnel Process automation Audit trail Tax authority focus on data quality Visibility over global compliance Workflow Document management 8

9 Tax compliance and reporting Robotic Process Automation (RPA) 1 Process Developers 2 Robot Controller 4 Business Users 1. Process developers specify the detailed instructions for robots to perform and publish them to the robot controller repository. 2. The robot controller is used to assign jobs to robots and to monitor their activities. 3 Robot 5 Applications 3. Each robot is located in an organisation environment which may be virtualised or physical (i.e., desktop computer) where it interacts directly with business applications. 4. Business users review and resolve any exceptions or escalations. 5. Robots are capable of interacting with a wide range of applications. 9

10 Tax compliance and reporting Robotic Process Automation (RPA) 10

11 Tax compliance and reporting case study VAT SMART SMART is a technology solution that supports the end-to-end standardised indirect tax compliance Flexible setup Easy upload and consolidation of data Data cleansing through Pre-Agreed Adjustments (PAA) Better quality and control Full audit trail, with all the data remaining in one system Management reporting based upon structured transactional data 11

12 Tax compliance and reporting case study VAT SMART Improved risk management, by eliminating manual intervention Data quality checks (DQC) and exception reports Return generation and submission Better insight, through an interactive dashboard SMART service differentiators Used by Deloitte Global Tax Centers on a daily basis Trend analysis report Client: SMART Training Legal entity: Demo Reporting country: Netherlands Currency: EUR Project type: VAT return Periodicity: Monthly Reporting period: From: 1/2013 To: 12/2013 Total Sales, Total Purchases and AR/AP ratio Total Sales For Period Total Purchases for period Total AR/Total AP ratio ,00 4, ,00 3,00 0,00 2,00 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec ,00 1, ,00 0,00 A services that connects with a dedicated service team Flexible usage tailored to your needs , , ,00 0, , , , , , , , ,00 0,00 AR Analysis Domestic supply Intracommunity supply of goods Export of goods EU supply of services Non EU supply of services Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 AP Analysis Domestic purchase Intracommunity acquisition of goods Import of goods EU purchase of services Non EU purchase of services Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 Monthly VAT Position Vat position return (Linear) Vat position return ,00 0, , , , , , ,00 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec

13 Tax planning and analysis Challenges Characteristics of enabling technology Insight from data Alignment with tax policy Big data Data analytics Communication Interpretation Visualisation Decision making Implementation Knowledge management Cognitive KPI monitoring 13

14 Tax planning and analysis Business Travel Analytics Post-travel Interactive dashboard Dynamic reporting and real-time analysis Visual assessment of higher risk business travel Travel programme overview, with drill-down capability Pre-travel Application Users enter planned journeys and receive a live risk assessment Establish compliance risk prior to undertaking travel Validation of travel to reduce / better manage risk Comprehensive offering A modular approach PE Social security National taxes US state taxes Immigration 14

15 Tax planning and analysis Deloitte knowledge management (via myinsight) myinsight provides access to a suite of Deloitte global tax tools and resources, giving you the ability to utilise Deloitte knowledge at the touch of a button. 15

16 Tax planning and analysis case study Recent tax development The Deloitte GST Dashboard solution is a new approach to indirect tax management designed to put you ahead of Compliance Risk. It uses sophisticated technology to mine and analyse tax data, enabling you to better understand your company s Indirect Tax position and to make more informed decisions. The GST Dashboard can assist with: GST Rate Analysis: shows transactions where GST differs from the standard rate or the zero rate GST Tax Code Analysis: shows transactions where the GST claimed differed from the Tax Code applied Customer Analysis: shows transactions where GST was charged to foreign customers and 0% charged to domestic customers Disallowed Expenses: shows transactions where commonly disallowed keywords appear in Supplier/Customer Names and Invoice Descriptions 16

17 Tax risk management Challenges Characteristics of enabling technology Risk identification Control design Information gathering Risk dashboards Monitoring KRI monitoring Reporting 17

18 Tax risk management Tax Risk and Opportunity Manager (TROM) TROM is a multi-dimensional tracker offering the central management team a clear insight into the current risk and opportunity profile of their organisation around the globe. Key Features include: Single repository in which to collate and track tax risks and opportunities of all types across divisions and geographies. Automatically generated dashboards which visualise the underlying risks and potential areas of opportunity, to permit more proactive risk and opportunity management Smart tool which can be used to efficiently collate risk data from the business Reduces the amount of time spent manually analysing large quantities of data Ability to create snapshot reports for reporting to stakeholders 18

19 Tax risk management Tax Risk and Opportunity Manager (TROM) Data collection tool completed either centrally or by employees of different entities, divisions or regions Completed templates are loaded into TROM to create tax risk register Fully customisable dashboards are automatically updated to reflect the new data Loaded templates are automatically locked and moved to a separate folder for ease of administration and audit trail. Sharepoint version of TROM Sharepoint version offers additional features including more comprehensive audit trail and the ability to attach supplementary documentation. Requires investment in Sharepoint environment. 19

20 Tax risk management myinsight A global tax platform, providing Deadline, process and documentation in one place Data aggregated for quick access to everything you need Maintained global tax deadline content across multiple regimes Global dashboard reporting Standard process workflows 20

21 Tax risk management case study ONESOURCE Workflow Manager implementation A multinational shipping company required improved visibility and control over global tax processes. Implementation included tracking for: Corporate Income Taxes, Shipping Taxes, Indirect Tax and Transfer pricing in over 150 countries Over 1,100 Entities Over 500 users within the organisation update the system to reflect the status of their compliance work. The company required a managed service for administration and maintenance since initial implementation. Adopted a two phased approach (EMEA followed by Rest of World) to ensure smooth transition. 21

22 Tax risk management case study Challenge: Large volume of data Deloitte solution: 1. Automated data validation process to ensure clean data 2. Periodic automated health check on data 3. Automation of OWM imports Challenge: Communication Deloitte solution: 1. Simple 1 hr training 2. Quick start guides for users 3. Innovative communication approaches Challenge: Additional Tax content Deloitte solution: 1. Global network of tax experts 2. Quarterly maintenance process Challenge: Browser Compatibility Deloitte solution: 1. Early communication of requirements 2. Engagement with relevant IT departments Challenge: Ongoing support and management Deloitte solution: 1. Dedicated support team at Deloitte 2. Support reporting to identify themes and solve at source 22

23 Developing a tax technology roadmap 2017 Deloitte Global Tax Center Asia Pte. Ltd. Tax technology 23

24 Developing a tax technology roadmap Tax Technology Plan: 2-3 month project to articulate a robust plan for an aligned tax technology strategy which business and tax leadership can sign-up to. Desired outcomes: Generate greater buy-in across the business and guide key business case decisions in tax; providing the basis for a no surprises culture for tax technology. Proposed structure 5-6 core work-streams: e.g. VAT, TP, Customs, CIT & Stat Accounting, Analytics Support functions also targeted SSC/GBS, Finance, IT/technology Specific follow-ups arising for relevant non-core processes/technology, e.g. employment taxes, environmental taxes 24

25 Developing a tax technology roadmap Typical project plan Week Stage 1: Preparation Mobilise project team, schedule workshops with key stakeholders Kick-off meeting to engage with key stakeholders Stage 2: Deep dive workshops Typically around 5-6 work-streams, including indirect taxes, transfer pricing, compliance and reporting, core system improvements, workflow, provision, data management and other taxes Stage 3: Follow-up sessions Additional detail from deep-dives to address completeness where further info is required Non-core work-streams may need to be addressed for complete picture Stage 4: Analyse and validate Validate and prioritise information to formulate roadmap, including initial capability, assessment and key software evaluation Produce Straw-man roadmap Stage 5: Present straw-man findings Finalise Straw-man for presentation to key stakeholders, including supporting deliverables Collaborative workshop to present findings to key stakeholders Agree on further action points and follow-up items Stage 6: Finalise deliverables Incorporate feedback from all sessions Finalise deliverables, including prioritisation, business cases and roadmap Agree next steps and transition project to implement status 25

26 Developing a tax technology roadmap Deliverables Key Risks and Issues - prioritised Key risks and issues are prioritised according to business urgency against projected cost, time and effort to implement. Against each risk or issue, an identified solution is proposed which addresses the scale of the work proposed. Straw man work-package roadmap The solutions to issues are broken down into discrete projects with logical work-packages and an indicative roadmap timeline is drawn up. The work-packages are categorised according to the type of approval required (from major to minor). Interactive work-package roadmap Once a straw man roadmap has been produced this is then shared as part of a collaborative workshop where key stakeholders from Tax, IT (and possibly Finance) are encouraged to help determine what the roadmap looks like according to their own requirements, leading to an agreed roadmap output. 26

27 Developing a tax technology roadmap Preparing for implementation Ensure the architecture is validated sign-off by tax leadership and IT (all key stakeholders) Business case formulation and authorisation Portfolio of projects longer term, complex projects together with quick wins breakdown into key work-packages with owners for each, along with a programme coordinator Identification of resources internal vs. external support Good project management / governance in place programme governance Closely monitor key risks and issues and impact / dependencies on other in-flight projects 27

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