tax function of the future leveraging technology to ...€¦ · insight into quality, early warning...
TRANSCRIPT
Tax function of the future
Leveraging technology to deliver tax objectivesRichard Mackender and James Paul | 20 July 2017
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 2
Agenda
1. Background and market research
2. Managing current challenges
3. Leveraging future opportunities
4. The journey
5. Q&A
Objectives for session:
• Discuss the pressures that tax directors tell us they are facing
• Facilitate a discussion on what you want from the tax function as CFOs
• Provide you with information on the options available to follow up with your tax team
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 3
Background and market research
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 4
The evolving tax landscape
Technology and
resource
Economic events
New legislation
Tax authority approach
Tax environment
Business globalisation –more obligations, greater economies of scale
Responsible tax –more stakeholders and scrutiny
Increased legislation – more rules, complexity
Tax authority transformation –using and sharing data
Technology –new risks and opportunities
Resource –new skills required
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 5
The evolving tax landscape
Global compliance to tax authorities (e.g., country- by-country
reporting)
Reporting for sustainability indices
(e.g. DJSI)
Industry specific reporting requirements
(e.g., CRD IV for financial institutions)
Local public transparency
requirements (e.g. UK, Australia, Denmark)
Information sharing agreements on the rise
Tax now a theme for other regulators –financial reporting,
corporate governance
• More requirements • More scrutiny • More challenge
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 6
Market research - drivers
34% 34% 33% 34%
16%
42% 43%
36% 37%
26%
58% 55%50%
58%
45%
0%
20%
40%
60%
Maximising
quality
Guaranteeing
control
Ability to add
value
Managing
costs
Process
efficiency
2016
2014
2012
40%
57%
38%
40%
56%
40%
52%41%
54%
28%
53%45%
38%
63%
0%
20%
40%
60%
80%
Quality Control Ability to add
value
Cost Process efficiency
Decentrliased functions
Coordinated functions
Centralised functions
• Satisfaction levels are at an all time low
• Particularly in terms of process efficiency
• Tax functions feel happy with levels of quality
• Control and process efficiency are areas of focus
% of respondents “satisfied” with current state
Anticipated importance of drivers over next three years
Source: Deloitte Global Market Research, 2016
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 7
Four faces of the tax director
CFO
Focus
Triangle
CFO
Focus
Triangle
Threshold
Performance
Tax
Director
Leading Edge
4 Faces of the Tax Director (adapted from 4 faces of the
CFO)
Compliance
Real-time compliance
information – across
jurisdictions, taxes
Insight into quality, early
warning of potential
failures
Close management of
audits
Cost
Visibility and control of
tax related spend –
across all functions,
internal and external
Processes
streamlined
Technology and
resource models
leveraged
Value
Up to date tax strategy,
aligned with business
Understanding of key
risks and status of
controls and mitigation
Clear measures, e.g.
ETR, and regular
monitoring
Risk
Close understanding of
the business and key
risks and opportunities
Influence within the
organisation to enable
realisation of tax goals
Tax embedded in day to
day decisions
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 8
Four faces of the tax director
Data quality
Streamlining
Automation
Reducing steward/operator time
Control / visibility
Visibility of events
Shared vision
Capacity to respond
Increasing catalyst/strategist time
Strong Relationships
Technology is a common theme…
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 9
Market research - technology
Source: Deloitte Global Market Research, 2016
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
66%64%
40%
32%
Process
efficiency
Quality and
accuracy of data
Risk
management
Planning and
business
decision making
20%22%
14%12%
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 10
Video: Tax technology architecture
[Click on the screenshot to view the video on YouTube]
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 11
Managing current challenges
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 12
Example tax technology considerations Tax compliance and reporting
Challenges 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
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 13
Example tax technology considerations Tax compliance and reporting – Dashboards
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
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 14
Example tax technology considerations Tax compliance and reporting – GST analytics
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
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
-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
Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013
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
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
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
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
-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
Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013
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
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
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
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
-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
Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013
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
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
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
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
-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
Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013
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
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
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
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
-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
Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013
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
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
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
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
-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
Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013
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
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
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
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
-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
Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013
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
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
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
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
-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
Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013
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
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
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
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
-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
Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013
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
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
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
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
-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
Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013
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
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
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
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
-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
Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013
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
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
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
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
-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
Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013
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
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
• Deloitte VAT SMART supports the end-to-end standardisedindirect tax compliance
• Uploads and consolidates data
• Data cleansing through Pre-Agreed Adjustments (PAA)
• Data quality checks (DQC) and exception reports
• Return generation and submission
• Full audit trail
• Management reporting based upon structured transactional data
VAT SMART
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 15
Example tax technology considerations Tax compliance and reporting – CbCR analytics
Risk assessment on CbCR data to be provided to tax authorities, including analysis such as:
• Effective Tax Rate (ETR) and Cash ETR
• Percent of related revenues to total revenue
• Number of employees versus:
• Unrelated party revenues
• Profit before tax
• Stated capital
• Tangible assets
Country-by-country Digital eXchange (CDX)
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 16
Tax technology architecture
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 17
Leveraging future opportunities
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 18
Emerging technologies
Emergingtechnologies
Robotic process
automation
Cognitive computing
Cyber & data
privacy
Big data
AI
Blockchain
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 19
Video: Robotics in tax
[Click on the screenshot to view the video on YouTube]
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 20
Robotics in tax examples
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 21
Implications for the tax operating model
Tax work will be reconfigured Resource models will change
• Routinized
• Decomposed
• Disintermediated
• Para-professionals
• Process engineers
• Systems designers
• Data scientists
• Far-shoring?
• Online collaboration
• Crowd
• Business partner
• Proactive not reactive
• Effective and efficient
New types of people will be needed Focus of the tax function will be redirected
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 22
The journey
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 23
Where should you start?
Create a tax technology vision
• Map the current state
• Consider what is possible
• Develop a desired architecture
Have a tax technology plan
• Layout a roadmap
• Allocate responsibility for delivery
• Agree it and secure budget
Reassess the tax operating model
• Review the process design
• Reconsider the resourcing model
• Refine the governance framework
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 24
Contacts
Southeast Asia CFO Vision© 2017 Deloitte Southeast Asia Ltd 25
Speakers
Richard Mackender
Deloitte Singapore
Partner
Tel: +65 6216 3270
Email: [email protected]
James Paul
Global Tax Centre Asia
Director
Tel: +65 6800 2200
Email: [email protected]
About Deloitte’s CFO Program The CFO Program brings together a multidisciplinary team of Deloitte leaders and subject matter specialists to help CFOs stay ahead in the face of growing challenges and demands. The Program harnesses our organization’s broad capabilities to deliver forward thinking and fresh insights for every stage of a CFO’s career – helping CFOs manage the complexities of their roles, tackle their company’s most compelling challenges, and adapt to strategic shifts in the market. Please visit www.deloitte.com/sg/seacfoprogram to find out more.
About Deloitte Southeast AsiaDeloitte 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 delivermeasurable 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.
This communication is for internal distribution and use only among personnel of Deloitte Touche Tohmatsu Limited, its member firms, and their related entities (collectively, the “Deloitte network”). None of the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.
© 2017 Deloitte Southeast Asia Limited