TAX REPORTING SOLUTION
We aim for the automation endgame resulting in the full Finance and Tax integration. A big part of the automation of this cycle consists of tax reporting/ accounting. Based on our years of experience with supporting multinationals as well as our own tax reporting knowledge, we have developed our reporting solution (T)(R)(S).
FINANCE AND TAX CYCLE
1. Leverage Source data
When you leverage your structured and unstructured data sources for tax reporting, you can pre-populate local tax packs with recorded data as well as create checks with the reported local information. This will not only enable users with information they know but also check for consistency with the source systems.
2. Execute tax reporting/ Accounting
Considering the fact that in-depth tax reporting knowledge is not always available, we will ask the user for known information around gross amounts in local currency and country specific tax rates. Our solution automatically calculates the tax related implications. Furthermore, it creates more than 2000 datapoints on the backend that can be used for any type of reporting.
3. leverage for multiple purposes
As the solution gathers and creates more data than requested, this information can be leveraged for other purposes like Pillar 2, CbCr, Cash tax forecasting and Loss forecasting. Furthermore, the data can be used to automatically prepare the IFRS/ USGAAP/ Local GAAP tax note for the financial reports.
4. Leverage for Tax return
The Tax Reporting Solution is setup in a way that the output can be aligned with the information required to prepare the local corporate income tax return.
5. Execute true-up analysis and journal entries
When the tax return is filed and the final positions are reported, the information of the return can be automatically compared with the provisional calculations which results in a true-up analysis. Furthermore, journal entry automation allows you to record the adjustments directly in the underlying systems.
6. Control framework
By adding a layer of control, governance and approaching it with the right change management policies, a future proof environment can be setup.
The out of the box solution contains the (automated) input schedules on the left which result in automated calculated reports on the right
The information/ data gathered and calculated in the Tax reporting process can be leveraged for the Pillar II process. (e.g loss position, effective tax rate and various tax positions can be connected in the platform to the entity specific Pillar II form).
CORPORATE INCOME TAX RETURN
The information/ data gathered and calculated in the Tax reporting process can be structured in an output file useable for the Corporate Income Tax return process. Depending on the platform, it can combine the tax related information with the commercial/ book figures stemming from the finance department/ process.
During design phase we look at your current proces, structure, data and tax packs. Furthermore, we analyze the internal knowledge and external dependencies. Based on this we design (together) the ideal implementation approach.
2. SETUP automation platform
Depending on the platform best suitable for your situation, we will setup the environment.
3. leverage latest close
By leveraging the latest close information, we assure that users can start with the information they know. This helps with change management and training the solution.