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In today’s complex environment, tax leaders often face significant data challenges, with data quality being of prime concern.
As the reporting burden continues to increase, managing compliance costs, ensuring quality, leveraging AI, and showing insights is becoming crucial.
But to achieve this, organisations need to ‘fix’ tax data—ensuring it’s fit for purpose and available on demand.
PwC’s Data controls engine (part of our wider Sightline ecosystem and Connected Tax Compliance offering) helps organisations to do this by ensuring that data quality, controls, and analytics are integral to an organisation’s tax reporting processes.
It offers enhanced data quality through powerful diagnostics that rapidly detect errors and interrogate source data within a single cloud-based platform.
Powered by PwC’s extensive catalogue of tax data dictionaries, validations, rules, analytics, and reconciliations, organisations can strengthen and operationalise their tax governance and risk management processes. Ensuring a comprehensive approach to optimising the quality of tax data.
Tax compliance is evolving rapidly with new global legislation like Pillar Two, e-invoicing, and new sustainability regulation emerging in just the last two years alone.
These emerging regulations require new data sets to be gathered, from new areas, on top of the vast data already needed for other areas of compliance.
To respond to this, organisations need to put data at the heart of their tax reporting. PwC’s Global Reframing Tax Survey reveals that 95% of tax leaders report a skills gap in their tax function, highlighting the need for advanced tools and technologies to optimise tax reporting processes. This is where PwC’s data-driven compliance, underpinned by PwC’s Data controls engine, comes in. It is a tax controls and analytics tool designed to improve the efficiency, accuracy, and risk management of tax data processes. Whether you’re dealing with indirect tax, withholding tax, or corporate income tax, PwC’s Data controls engine helps validate and test tax data across multiple systems.
Today’s companies need to capture, analyse, and report on increasing amounts of tax data in unprecedented detail.
However, our clients tell us they face several challenges with the growing volumes of tax data they need to collect, including:
PwC’s Data controls engine addresses these issues by providing a trusted view of enterprise tax data on a timely basis, bringing all data into one place and applying controls to test inbuilt tax logic.
Authorities and regulators are increasingly requiring real-time filings.
We are moving away from the days when tax returns could be filed up to a year later. Now, returns are often required within a month of a filing trigger, with instant reporting becoming common through new regulations like e-invoicing.
This shift means organisations can no longer rely on lengthy, manual tax data cleansing and transformation processes. Instead, they need to proactively check data quality and consider a risk-based review of compliance. This frees up resources to instead focus on rectifying weak spots to minimise risks and ensure trusted reporting.
PwC’s Data controls engine helps organisations to do this—centralising tax data checks and providing real-time insights into potential risks and exceptions, ensuring shorter compliance review cycles and lower compliance reporting costs.
The role of the tax function is changing, with data and technology empowering tax professionals to contribute more to complex cross-border businesses.
Tax data is a valuable resource that can generate rich business insights. For example, organisations can leverage data to better understand their effective tax rates, assess the impact of regulatory changes, and analyse the true tax-adjusted performance of products or markets. However, many organisations lack the quality of tax data and insight tools to do this.
By using PwC’s Data controls engine, powered by AI, organisations can interrogate tax data that has been quality checked. This allows for more accurate and insightful business planning.
PwC’s Data controls engine conducts rigorous tax data testing procedures, meticulously tiered by risk criteria to:
It has capabilities across corporate income tax, indirect taxes (sales tax), withholding taxes, and tangible fixed assets to provide a comprehensive set of controls and insights across your tax data and filings.
PwC’s Data controls engine helps organisations to embed better data controls, ensuring that their tax data works even harder for them and helping to build a new level of trust in tax reporting.
By working closely with our alliance partners, we ensure that our clients have access to the best-in-class technologies and expertise needed to navigate the complexities of tax compliance. Our PwC Data controls engine tool leverages Google Cloud’s advanced data analytics and AI capabilities to provide real-time tax data insights, ensuring accurate and efficient compliance for our clients globally.
PwC’s Data controls engine enables our clients to systematically operationalise and embed tax risk and governance frameworks into their day-to-day compliance processes and embed a risk and controls-based approach to managing their global tax compliance obligations.
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