Tax strategy and operations
The rapidly changing tax landscape is shifting the focus of senior management onto how tax is managed in their business and how the tax strategy aligns with the commercial goals of their organisation.
Tax authorities increasingly expect organisations to be able to confirm that tax risks are appropriately managed in a way that facilitates real time compliance and data oriented auditing. This is combined with the continued demand for increased transparency from a wide range of stakeholders.
Expanding compliance and regulatory requirements coupled with the new challenge for tax to be a value added business partner means that tax teams must be able to meet an increased number of changing and competing demands with constrained resource.
The factors described above are driving tax professionals to broaden their proficiencies beyond tax reporting. A successful tax professional of the future will be highly proficient in data analysis, statistics and technology, as well as process improvement and risk management.
To remain relevant to the business, the tax function must build a compelling, cost effective business case for change.
We can work with you to:
- Perform a current state review of tax management across your business using our Tax Management Maturity Model (T3M)
- Develop a tax strategy that's aligned to your organisation’s commercial goals
- Develop and implement a detailed roadmap for transformation
- Improve the effectiveness and efficiency of your processes and controls
- Undertake detailed risk management reviews
- Identify and manage the risks and challenges arising from change
- Meet the demands for increased transparency
The role of tax administrations
There is a general trend among tax administrations to move to a form of cooperative compliance with an increasing focus on an organisation’s tax management environment. Just as tax functions have to evolve to cope with more complex compliance and reporting requirements, tax administrations will also have to adapt and change.
Tax reporting and compliance
Compliance across all taxes, statutory accounting and tax reporting is becoming increasingly complex. Companies are struggling to do more with less while driving value out of their tax and finance functions. The centralisation of finance and accounting functions presents additional challenges when dealing with complex local rules, disparate technologies, and manual processes during the compliance cycle. This results in a greater risk of compliance failures and minimal time for strategic forecasting or planning.
Many companies are rethinking their approach to domestic and global compliance and reporting by taking a closer look at their technology, processes, resources, and service providers. Leading tax functions are using co-sourcing/outsourcing as a critical component of tax function strategy, and as a means to better align tax function investments and use of talent with organisational goals.
We are using our experience of providing cross-border tax compliance services to deliver both domestic and global multi-tax compliance services for our clients.
We can work with you to:
- Coordinate all the tax compliance activities (e.g. direct and indirect taxes, tax accounting, preparation of statutory financial statements and country by country reporting) for your subsidiaries, with diverse accounting practices, legislative environments and business customs, seamlessly and cost-effectively
- We take an integrated, global approach to the variety of local compliance services
- Local country specialist teams form the backbone of our service offering, providing experienced resources to help with the compliance needs today, support in future audits, and practical knowledge of current and emerging regulatory requirements
- Integrated Global Compliance Services (IGCS) is our web-based portal designed to collaborate with you around the world, including effective exchange of data sources, transparent review of deliverables, and real-time access to status, workflow, deliverables, and critical information
- Our client relationship managers deliver centralised coordination and communication
- Our experience and scalability allows us to customise and adapt our delivery model to align with your broader business goals
Tax accounting services
Financial restatements, coupled with increased regulatory scrutiny of tax accounts and related tax disclosures, have elevated the focus on tax accounting and exposed significant problems in many companies
Keeping track of tax law changes around the world has become a growing challenge for multinationals, many of whom are rapidly expanding their geographic footprint at a time when jurisdictional tax laws are undergoing nearly constant change. Naturally, changes in tax law have an impact on tax planning, as well as tax return preparation and, ultimately, tax cash flows. Those consequences, however, are often preceded by the impact of such changes on company financial reporting.
Meanwhile, the emergence of international shared services and GAAP convergence is putting additional strain on an already resource-constrained tax function. We can help bring greater confidence in your tax reporting, meaning fewer quarter-end and year-end surprises.
We can work with you to reduce risk and achieve better control over your tax accounting function through improved and more efficient processes. Our team of dedicated technical specialists around the globe provide guidance, and best practices, on a range of tax accounting issues, including:
- Tax provision outsourcing and support
- Accounting for uncertain tax positions (including FIN 48) assessments
- GAAP conversion modelling to determine the tax and accounting impact of moving to a different GAAP
- Other specialised tax accounting services, including deferred tax analyses and tax basis balance sheet assistance
- Tax accounting technical assistance and support, including customised training
Increasingly, tax functions understand the value of leveraging technology to drive greater efficiency, improve tax processes and manage risk.
Whilst companies largely understand the importance of creating strategies around tax technology and pursuing related initiatives, most have yet to make appropriate investments in these areas. These investments play an integral role in transforming tax into a strategic business partner within the organisation. As such, tax leadership should engage with company leadership and commit to the next steps in the evolution of its tax function.
Technology is becoming increasingly important to the tax function as they:
- Are asked to do more with less
- Centralise activities
- Require more and better data, more frequently and on a real time basis
- Need to drive value from tax data
- Are required to maximise the return on investment in finance function transformation
- Comply with exponentially increasing reporting requirements
- Manage the introduction of co-operative compliance models and risk based approaches by tax authorities
The above are critical to tax transformation and all of this requires greater automation. We can work with you to:
- Develop and implement your tax technology strategy. It is crucial to assess where you are and where you want to be to work out how to get there - the answer will be different for everyone
- Discover the power of tax data management and analytics to assist in the decision-making process in areas such as detection of risk, opportunity identification, projections and scenario planning, and overall business support
- Understand the benefits of using technology to collaborate, automate and monitor tax processes and workflow using Tax Operations Manager (TOM)
- Unlock the potential of your existing Enterprise Resource Planning systems for tax
- Improve your tax accounting processes
Get more information on our tax technology services.