The tax function in a company has assumed a huge significant recently due to both internal and external push. Tax authorities are focusing on data and analytics more than ever before. Hence, there is a need for transformation.
The tax transformation journey will not be easy, but it is now imperative and the return on investment can be significant. We can work with you to develop and implement an action plan to help level up to your desired end state. But “one size does not fit all” and to start the journey, you should assess the gaps between where you are now and where you want to be. Depending on the design of your tax function, this could mean developing a holistic tax technology strategy and roadmap as part of the overall tax strategy, or it could simply mean identifying solutions for specific processes and embedding them into current tax operations.
Tax authorities and other stakeholders expect Tax functions to be able to demonstrate, with evidence, that they have operated in an effective and efficient way. They must be able to show, often via a formalised tax control framework and testing programme, that tax risk is mitigated to an acceptable level and tax opportunities have been taken in line with the organisation’s overall attitude to reputational and compliance risk.
Increasingly managing tax is not a purely technical challenge and the skills required also include technology awareness, project management, leadership, and communication with the wider business in a way that they understand. Hence, it is important to have a robust tax governance to increase transparency of your tax data and gain trust from the stakeholders.
PwC has developed the global Tax Management Maturity Model (‘T3M’). The T3M methodology and tool leads the organisation in a practical way to a Tax Control Framework (‘TCF’) designed for the needs of the organisation. With the T3M, we will help you to review your current state of tax management across your business.
Core processes and routine activities can have a significant and lasting impact on the Tax function. As tax laws and accounting standards continue to evolve, Tax is challenged to look closely at how data and related documents are received, processed, and ultimately retained, while continuing to add value through strategic decision making.
Many have responded to these changing tax requirements by developing solutions with varying approaches including automation and the leveraging of enterprise-wide data. PwC has the necessary skills in Tax and Technology to work with you to identify, map and transform your tax processes utilising the latest technology developments to automate where it adds value.
RPA (Robotics Process Automation)
Robotic Process Automation (RPA) is a feature of intelligent process automation (IPA) that takes productivity optimization to the next level by redefining work and re-assigning employees to execute higher-value activities. While the process bots are capable of independently performing simple human-like functions such as interpreting, deciding, acting, and learning, your tax function can redirect focus on activities that create value and job satisfaction.
Data Preparation Automation
Streamline your data preparation processes to deliver your data outputs quickly and accurately.
Tax Data Visualisation
Visualise your data to facilitate business planning and opportunity discussions with your stakeholders.
Unlike other data analytics and rules based software, Swift uses machine learning technology which enables continuous improvement in data classification without needing to be explicitly programmed.
This means that Swift continues to get more accurate and efficient over time. Swift’s indifference to data volume makes it easy to analyse multiple/large data sets for which manual review and classification is prohibitive.
Data Hub is a web-based software that enables collaboration between finance and tax teams to prepare reports via trial balances generated from ERP systems. It also allows you to zoom in to key information and financial ratios for each entity/country.
Tax management can no longer just be taking care of compliance. It takes having in place oversight, control and governance over activities beyond compliance, to make a tax function effective and value adding. This may include:
PwC’s Tax Management & Reporting Solution (TMRS) addresses the needs of an effective tax function by looking at best practices of tax management. It promotes collaboration from every territory/entity on tax operations and centrally store important tax documents in a single platform. It also streamlines tax reporting and tax risk assessment using data visualisation to drive and support decision making.