Corporate Tax and BEPS. Are your systems ready to report ?

10 Challenges 

1. Data granularity & segmentation

Do you have the relevant level of detail in your chart of accounts to be able to execute your tax calculations? How is your data structured? Do you have entity level trial balance data? 

2. Data consistency & timing

Is your data recorded in one particular format (i.e. IFRS only) or are there multiple formats? How will you consolidate in case of a tax group? When can you use your data? Are you dependent on the financial close? 

3. Data sources 

Can you track your data in your ERP and/or consolidation system? Can you track your relevant tax income transactions? 

4. Data quality

Can you trust your data? Do you need to put controls in place to execute frequent validation checks in order to ensure data quality? 

5. Accessibility of data & data maintenance

Who has access to your data and how is security maintained? How is metadata (such as legal entities, tax groups, chart of accounts, etc.) maintained? Do you have data management systems and processes in place?

6. System aggregation and/or consolidation

Can the system aggregate financial data? Does the system have the capability to automatically eliminate relevant intercompany transactions and balances?

7. System calculations

Are there out-of-the-box calculations and schedules available for Corporate Tax purposes? Does the system allow for set up of local and/or regional calculations? 

8. General system functionalities 

Does the system allow for workflow management functionalities such as process, task, role and hierarchy tracking? 

9. Reporting capabilities

What type of reporting capabilities does the system possess? Can you integrate reporting capabilities with existing Business Intelligence (BI) systems? Can you customise reports?

10. Connectivity, security and integration

Where and how can you access your systems? Can your systems be integrated with external sources for data gathering and reporting purposes?

How we can help

PwC can help you address these challenges by conducting a systems gap assessment to:

1. Address your  data and system challenges

2. Set out best practices

3. Defining a 'To-be' IT architecture

4. Develop a roadmap to address system modifications and/or explore 3rd party technology