2017 tax management consulting conference · 2020-05-09 · • implementation included tracking...

2017 Tax Management Consulting ConferenceTax technologyDeloitte, Kuala Lumpur – 12 July 2017

Tax technology© 2017 Deloitte Global Tax Center Asia Pte. Ltd. 2

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

Agenda

3Tax technology© 2017 Deloitte Global Tax Center Asia Pte. Ltd.

Introduction to tax technology



Source: Deloitte Global Market Research, 2016

66% 64%

40%

32%

Process

efficiency

Quality and

accuracy of

data

Risk

management

Planning and

business

decision

making

20%22%

14%12%

High current benefit

Many businesses see high potential benefits using technology in different areas of tax.

……but few are actually realising those benefits

High potential benefit



Tax technology architecture

Master Data Management

Tax Data Stores Reporting Key OutputsSource Business Systems

Enterprise

TAX DASHBOARD

Workflow, Status, Documents, Analytics

Consolidation Forecasting

ERP

Tax Determination

Accounting s/w

Excel

Other Systems

Provisioning

Transfer Pricing

Tax return s/w

Stat Account s/w

Report Writers

Single Entity

Consolidated

Tax Risk Reports

Provisions

Returns, Forms E-filings

CbC Reporting

TP Documentation

Statutory Accounts

Work Papers

Forecasts



Tax technology architecture video


Examples of tax technology in action


Challenges

Tax compliance and reporting


Characteristics of enabling technology

Significant

volume of data

Regular, time

consuming

processes

Errors from

manual

manipulation

Tax authority

focus on data

quality

Reliance on

non-tax

personnel

Visibility over

global

compliance

ERP sensiti-

sation

Process

automation

Audit trail

Workflow

Document

manage-

ment

Data

validation




1

3

Process Developers 2 Robot Controller

Robot

4 Business Users

5 Applications

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. 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.

Robotic Process Automation (RPA)




Robotic Process Automation (RPA)


Tax compliance and reporting – case study


VAT SMART

• SMART is a technology solution that supports the end-to-end standardisedindirect 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


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

• A services that connects with a dedicated service team

• Flexible usage tailored to your needs

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

0,00

1,00

2,00

3,00

4,00

-100 000 000,00

-50 000 000,00

0,00

50 000 000,00

100 000 000,00

Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013

Total Sales, Total Purchases and AR/AP ratio

Total Sales For Period Total Purchases for period Total AR/Total AP ratio

0,00

10 000 000,00

20 000 000,00

30 000 000,00

40 000 000,00

50 000 000,00


AP Analysis

Domestic purchase Intracommunity acquisition of goods Import of goods EU purchase of services Non EU purchase of services

-60 000 000,00

-40 000 000,00

-20 000 000,00

0,00

20 000 000,00

40 000 000,00

60 000 000,00


AR Analysis

Domestic supply Intracommunity supply of goods Export of goods EU supply of services Non EU supply of services

-12 000 000,00

-10 000 000,00

-8 000 000,00

-6 000 000,00

-4 000 000,00

-2 000 000,00

0,00

2 000 000,00


Monthly VAT Position

Vat position return (Linear) Vat position return

0,00

1,00

2,00

3,00

4,00

-100 000 000,00

-50 000 000,00

0,00

50 000 000,00

100 000 000,00




0,00

10 000 000,00

20 000 000,00

30 000 000,00

40 000 000,00

50 000 000,00


AP Analysis


-60 000 000,00

-40 000 000,00

-20 000 000,00

0,00

20 000 000,00

40 000 000,00

60 000 000,00


AR Analysis


-12 000 000,00

-10 000 000,00

-8 000 000,00

-6 000 000,00

-4 000 000,00

-2 000 000,00

0,00

2 000 000,00




0,00

1,00

2,00

3,00

4,00

-100 000 000,00

-50 000 000,00

0,00

50 000 000,00

100 000 000,00




0,00

10 000 000,00

20 000 000,00

30 000 000,00

40 000 000,00

50 000 000,00


AP Analysis


-60 000 000,00

-40 000 000,00

-20 000 000,00

0,00

20 000 000,00

40 000 000,00

60 000 000,00


AR Analysis


-12 000 000,00

-10 000 000,00

-8 000 000,00

-6 000 000,00

-4 000 000,00

-2 000 000,00

0,00

2 000 000,00




0,00

1,00

2,00

3,00

4,00

-100 000 000,00

-50 000 000,00

0,00

50 000 000,00

100 000 000,00




0,00

10 000 000,00

20 000 000,00

30 000 000,00

40 000 000,00

50 000 000,00


AP Analysis


-60 000 000,00

-40 000 000,00

-20 000 000,00

0,00

20 000 000,00

40 000 000,00

60 000 000,00


AR Analysis


-12 000 000,00

-10 000 000,00

-8 000 000,00

-6 000 000,00

-4 000 000,00

-2 000 000,00

0,00

2 000 000,00




0,00

1,00

2,00

3,00

4,00

-100 000 000,00

-50 000 000,00

0,00

50 000 000,00

100 000 000,00




0,00

10 000 000,00

20 000 000,00

30 000 000,00

40 000 000,00

50 000 000,00


AP Analysis


-60 000 000,00

-40 000 000,00

-20 000 000,00

0,00

20 000 000,00

40 000 000,00

60 000 000,00


AR Analysis


-12 000 000,00

-10 000 000,00

-8 000 000,00

-6 000 000,00

-4 000 000,00

-2 000 000,00

0,00

2 000 000,00




0,00

1,00

2,00

3,00

4,00

-100 000 000,00

-50 000 000,00

0,00

50 000 000,00

100 000 000,00




0,00

10 000 000,00

20 000 000,00

30 000 000,00

40 000 000,00

50 000 000,00


AP Analysis


-60 000 000,00

-40 000 000,00

-20 000 000,00

0,00

20 000 000,00

40 000 000,00

60 000 000,00


AR Analysis


-12 000 000,00

-10 000 000,00

-8 000 000,00

-6 000 000,00

-4 000 000,00

-2 000 000,00

0,00

2 000 000,00




0,00

1,00

2,00

3,00

4,00

-100 000 000,00

-50 000 000,00

0,00

50 000 000,00

100 000 000,00




0,00

10 000 000,00

20 000 000,00

30 000 000,00

40 000 000,00

50 000 000,00


AP Analysis


-60 000 000,00

-40 000 000,00

-20 000 000,00

0,00

20 000 000,00

40 000 000,00

60 000 000,00


AR Analysis


-12 000 000,00

-10 000 000,00

-8 000 000,00

-6 000 000,00

-4 000 000,00

-2 000 000,00

0,00

2 000 000,00




0,00

1,00

2,00

3,00

4,00

-100 000 000,00

-50 000 000,00

0,00

50 000 000,00

100 000 000,00




0,00

10 000 000,00

20 000 000,00

30 000 000,00

40 000 000,00

50 000 000,00


AP Analysis


-60 000 000,00

-40 000 000,00

-20 000 000,00

0,00

20 000 000,00

40 000 000,00

60 000 000,00


AR Analysis


-12 000 000,00

-10 000 000,00

-8 000 000,00

-6 000 000,00

-4 000 000,00

-2 000 000,00

0,00

2 000 000,00




0,00

1,00

2,00

3,00

4,00

-100 000 000,00

-50 000 000,00

0,00

50 000 000,00

100 000 000,00




0,00

10 000 000,00

20 000 000,00

30 000 000,00

40 000 000,00

50 000 000,00


AP Analysis


-60 000 000,00

-40 000 000,00

-20 000 000,00

0,00

20 000 000,00

40 000 000,00

60 000 000,00


AR Analysis


-12 000 000,00

-10 000 000,00

-8 000 000,00

-6 000 000,00

-4 000 000,00

-2 000 000,00

0,00

2 000 000,00




0,00

1,00

2,00

3,00

4,00

-100 000 000,00

-50 000 000,00

0,00

50 000 000,00

100 000 000,00




0,00

10 000 000,00

20 000 000,00

30 000 000,00

40 000 000,00

50 000 000,00


AP Analysis


-60 000 000,00

-40 000 000,00

-20 000 000,00

0,00

20 000 000,00

40 000 000,00

60 000 000,00


AR Analysis


-12 000 000,00

-10 000 000,00

-8 000 000,00

-6 000 000,00

-4 000 000,00

-2 000 000,00

0,00

2 000 000,00




0,00

1,00

2,00

3,00

4,00

-100 000 000,00

-50 000 000,00

0,00

50 000 000,00

100 000 000,00




0,00

10 000 000,00

20 000 000,00

30 000 000,00

40 000 000,00

50 000 000,00


AP Analysis


-60 000 000,00

-40 000 000,00

-20 000 000,00

0,00

20 000 000,00

40 000 000,00

60 000 000,00


AR Analysis


-12 000 000,00

-10 000 000,00

-8 000 000,00

-6 000 000,00

-4 000 000,00

-2 000 000,00

0,00

2 000 000,00




0,00

1,00

2,00

3,00

4,00

-100 000 000,00

-50 000 000,00

0,00

50 000 000,00

100 000 000,00




0,00

10 000 000,00

20 000 000,00

30 000 000,00

40 000 000,00

50 000 000,00


AP Analysis


-60 000 000,00

-40 000 000,00

-20 000 000,00

0,00

20 000 000,00

40 000 000,00

60 000 000,00


AR Analysis


-12 000 000,00

-10 000 000,00

-8 000 000,00

-6 000 000,00

-4 000 000,00

-2 000 000,00

0,00

2 000 000,00





Tax planning and analysis


Challenges Characteristics of enabling technology

Insight from

data

Alignment with

tax policy

Communication

Decision

making

Interpretation

Implemen-

tation

Big data

Visual-

isation

Cognitive

Knowledge

manage-

ment

Data

analytics

KPI

monitoring




Business Travel Analytics

Pre-travel

Comprehensive offering

Post-travel

• Dynamic reporting and real-time analysis

• Visual assessment of higher risk business travel

• Travel programme overview, with drill-down capability

A modular approach

Interactive dashboard 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

Social security

US state taxes

PE ImmigrationNational

taxes




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.


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


Tax risk management


Challenges Characteristics of enabling technology

Risk

identification

Control design

Monitoring

Reporting

Information

gathering

Risk

dashboards

KRI

monitoring


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


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 Sharepointenvironment.


Tax risk management


A global tax platform, providing…

Deadline, process and

documentation in one place

Maintained global tax deadline

content across multiple regimes

Global dashboard reporting

Data aggregated for quick

access to everything you need

Standard process workflows

myInsight


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.


Tax risk management – case study


Challenge: Browser Compatibility

Deloitte solution:1. Early communication of

requirements2. Engagement with relevant IT

departments

Challenge: Ongoing support and management

Deloitte solution:1. Dedicated support team at

Deloitte2. Support reporting to identify

themes and solve at source

Challenge: Large volume of data

Deloitte solution:1. Automated data validation process to ensure clean data2. Periodic automated health check on data3. Automation of OWM imports

Challenge: Communication

Deloitte solution:1. Simple 1 hr training2. Quick start guides for users3. Innovative communication

approaches

Challenge: Additional Tax content

Deloitte solution:1. Global network of tax experts2. Quarterly maintenance

process


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



Week 1 2 3 4 5 6 7 8

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

Typical project plan



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.



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

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms.

Deloitte provides audit, consulting, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500® companies through a globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights, and high-quality service to address clients’ most complex business challenges. To learn more about how Deloitte’s approximately 245,000 professionals make an impact that matters, please connect with us on Facebook, LinkedIn, or Twitter.

About Deloitte Southeast Asia

Deloitte Southeast Asia Ltd – a member firm of Deloitte Touche Tohmatsu Limited comprising Deloitte practices operating in Brunei, Cambodia, Guam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam – was established to deliver measurable value to the particular demands of increasingly intra-regional and fast growing companies and enterprises.

Comprising 290 partners and over 7,400 professionals in 25 office locations, the subsidiaries and affiliates of Deloitte Southeast Asia Ltd combine their technical expertise and deep industry knowledge to deliver consistent high quality services to companies in the region. All services are provided through the individual country practices, their subsidiaries and affiliates which are separate and independent legal entities.

© 2017 Deloitte Global Tax Center Asia Pte. Ltd.