Tax Function of the Futureevent.lvl3.on24.com/event/13/66/18/2/rt/1/documents/resourceList... · •Leveraging SAP for Tax ... Predictions –Enterprise data within the Tax ecosystem

Tax Function of the Future

Enterprise Insights for Tax

www.pwc.com

PwC | Tax Function of the Future

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PwC | Tax function of the future

Tax Function of the Future series

Our predictions in the series cover sixmain areas:

• Legislative and regulatory

• Risk management and governance

• Data

• Technology

• Process

• People

Previous topics in the series:

Part 1 – Reshaping the Tax Function of the Future:Predictions and insights

Part 2 – Global tax transparency and risk management

Part 3 – Unlocking the power of data and analytics

Part 4 – Tax as a critical component in every Finance transformation effort

Part 5 – Driving value through tax reporting

Part 6 – Building the business case for change

Part 7 – Enhancing tax process management and controls: Workflow, document management and collaboration

Today’s TopicEnterprise Insights for Tax

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PwC | Tax function of the future

Introductions

Bjarne BergPrincipal, Advanced Tax Analyticsand Innovation Co-Leader(704) [email protected]

David NicksonPrincipal, End-to-End Transfer Pricing Execution Group Leader(646) [email protected]

Todd BixbyPrincipal, Tax Reporting and Strategyand Analytics Leader(612) [email protected]

Andy RugglesPartner, US Tax Reporting and Strategy Leader(415) [email protected]

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mailto:[email protected]





Agenda

• Predictions – Enterprise data within the Tax ecosystem

• Leveraging SAP for Tax

• Enterprise Insights for Tax – Feature highlights

• Demonstration of “The Tax data hub” – Video

• Getting started with Enterprise Insights for Tax (PwC Approach)

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• The majority of Tax functions will receive all information in a ‘tax-ready format’ from either their enterprise-wide financial systems or a dedicated tax data hub.

• Dedicated tax data hubs will become mainstream and be developed internally, licensed from a third-party vendor, and/or accessed through an accounting firm as part of a co-sourcing arrangement.

Data in tax-ready format

Licensed

third-party

Internally

owned

Co-

sourcing

BuyBuild Rent

Centralized tax data hubEnterprise

systems

Data predictions

• More companies will use their enterprise-wide financial systems to prepare tax calculations (e.g., income tax accounting and indirect taxes), thereby replacing spreadsheets and/or traditional tax technology solutions.

• The vast majority of Tax functions will rely on professional data analysis tools to assist in the decision-making process in areas such as detection of risk, opportunity identification, projections and scenario planning, and overall business support.

Technology predictions

New technology

Reduce global

tax rate

Identify risks

Projections

and predictive analytics

Better decision

making and enhanced strategic planning

Enterprise systems

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Predictions – Enterprise data within the Tax ecosystem



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Automated tax operations management

Process management and workflow

Document management

Data collection Calendar

Tax Finance Third parties

Tax data hub

Tax applications Key

deliverablesTax sensitization

Tax data management

Direct connect

Enterprise insights for tax Leverage all

business tools

Tax data mappings

Business intelligence and analytics

Final deliverables available to tax function

Enterprise systems



“76% of US CEOs are concerned about the increasingtax burden”

“Corporate boards are engaging more regularly on tax matters reflecting the increased business riskassociated with a company’s strategy”

- 2015 CEO Survey*Paying Taxes 2016, 10th edition, joint PwC and World Bank Group publication

Did you know that 40-50 cents of everydollar a company earns goes to some form oftax?

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Total tax payments made

by F1000 in 2014

Even a small change in tax can

significantly impact results and ROI

Average effective tax rate (direct and indirect) for global

corporations in 2014*

$350B+ 40.8% EPS


Polling question #1

To what extent has your company leveraged SAP tools for Tax data management/reporting/Business Intelligence?

a. Not leveraged

b. Minimally leveraged

c. Moderately leveraged

d. Significantly leveraged

e. PwC participant

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Leveraging SAP for Tax – Challenges

Data is not tax sensitized

Transactions aren’t only in tax sensitized accounts

Process challenges – where data is incorrect

Integration of financials with provision & compliance data

Ease of access & training on tools/data dictionary

May never be on a single platform

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Leveraging SAP for Tax – Opportunities

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Direct access to financial data - aligned to a single version of the truth

No longer need to physically “move” data

Real time access to financial data

Ability to tax sensitize enterprise/financial data for use by Tax

Leverage standard enterprise tools

Ability to do quick reporting & “what if” scenarios


Leveraging SAP for Tax – Opportunities…SAP S/4 HANA finance – Foundation of digital core

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Instant insightSingle source of truth

Intuitive user experienceInsight for tax users

Flexible and nondisruptiveEasier to deploy and extend

Real-time accounting

Instant financial analysis

Real-time and predictive planning

Transfer pricing and Country by Country Reporting

End-to-end process automation

Financial networks

User experience

Tax reporting Big data

Legal entity reportingEnterprise riskand compliance

Financeoperations

Controls andfinancial risk

Accounting andfinancial close

SAP HANA


Leveraging SAP for Tax – Solutions

Business IntelligenceActively monitoring the group tax position

SAP AlignmentGetting the basics right

Transactional TaxMeeting jurisdiction specific compliance regulations at transaction level

Tax Lifecycle

Integration

Tax Fixed Assets

Indirect TaxCustoms Duty alignment to

Intercompany

Supply Chain Sensitization

Tax SensitizationIntercompany Accounting/

Transfer Pricing

ERP Controls,

Maintenance & Monitoring

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Polling question #2

Is your Company currently searching for a solution or developing a plan to leverage SAP for Tax?

a. Yes

b. No

c. PwC participant

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Enterprise Insights for Tax – Features

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Tax data hub Easy to useAnalytics Reports

• Automated integration of data for tax

• Legal entity mapping

• Tax Sensitization

• BPC & GL data

• Transaction Data

• Provision Data

• Designed for the C Suite and Tax Professional

• Latest High Performance SAP Technology

• Extensive Drill Down Features

• Excel integration

• ETR Analysis

• Tax Risk Analysis

• Cash Tax Analysis

• Drill Down to Drivers and Components

• Ad Hoc Analysis

• Insights

• Consolidated Financials to GL Transaction Drilldown

• Reconciliation Reports

• Data Load History

• Self Service Reporting

Tax data hub Easy to useAnalytics Reports


CFO – Visibility into tax areas that present the most impact risk for audit & financial statements; develop fact based strategies and ensure accurate reporting

VP of tax – Visibility into factors driving the tax expense and cash tax by jurisdiction to adjust or plan for the tax expense; access tax analytics to detect trends and discover insights

Tax team – Visibility into effective tax rates and alerts regarding unusual or unplanned tax items or transactions to anticipate their impact on the financial statements

Cost savings – Leverages and extends a company's enterprise investment in SAP and integrates with core SAP financial modules

True end-to-end tax/finance process for SAP – Can be deployed on premise or as a platform-as-a-service model; comprehensive data model and foundational framework for tax

Efficiency – Reduces manual processes and the need for storage of tax data in spreadsheets and disparate tax-supported data sources

Enterprise Insights for Tax – Benefits

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Polling question #3

Which Tax function area would most benefit from easy access to core financial data?

a. Accounting for income taxes and direct tax compliance

b. Indirect tax compliance

c. Transfer pricing and tax planning

d. Tax controversy

e. Tax organization, strategy design and execution

f. PwC participant

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Enterprise Insights for Tax – Feature highlightsTax risks dashboards with exposure information

Detailed information on Net Income Before Tax (NBIT), Tax Expense and Effective Tax Rate (ETR) is available by organizations, jurisdictions, risks tiers, years and legal entities.

There are 3 dashboards that track tax risk tiers based on regulatory, political or geography stability

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Enterprise Insights for Tax – Feature highlightsTable toggle and download to excel, CSV or PDF

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For all dashboards user can toggle between graphs and detailed data tables

Data can be exported to Excel, CSV, printed as a PDF or sent by email as an attachment

Users always have access to the underlying data for any graphs or map in the application.


Enterprise Insights for Tax – Feature highlightsAdd comments to dashboards and select measures

Users can add comments and Insights directly into any dashboard

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The dashboards are collaborative tools for comments and sharing of Insights between analysts, management and executives.

Users can decide what measures to show on a graph


Enterprise Insights for Tax – Feature highlightsAccess to financial data at detailed levels

Drill down to details

Summary graphs of sub-totals

Users can add comments and observations

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With the speed of SAP HANA, access to billions of records are executed in 1-3 seconds. Therefore, the application provides access to all details.

The whole Chart-of-Accounts (CoA) is available in the drill-down


Demonstration “The tax data hub”

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https://youtu.be/ZzfI5mJqNRU

https://youtu.be/ZzfI5mJqNRU


Enterprise Insights for Tax – Feature highlightsAd-hoc querying in design studio

Ad-Hoc User defined Reporting

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Reports can be built by end users by simply clicking and dragging the fields into the report (2 hour training is provided)

Users have access to all data in the system and can built their own reports on-the-fly


Polling question #4

Has your company provided training to enhance the Tax function’s use of data analytics and data visualizations?

a. No, we have not yet considered training solutions

b. No, but we are searching for suitable training solutions

c. Yes, we are in the process of training our tax team in this area

d. Yes, we have provided training and our tax team is very proficient in this area

e. PwC participant

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Tax data hub

SAP BW/HANA

Tax Finance Third parties

Tax

sensitizationEnterprise

systems

SAP/HANA

PCM

GTS

Other

Automated tax operations management

Document

management

Process management

and workflow

CalendarData

collection

Key

deliverables

ETR/Cash Forecast

UTP

Book/Tax Reconciliation

Planning

Audit, etc.

Tax Applications

Corptax Prov/Comp

Thomson Reuters

Hyperion/BPC

SAP FA, BNA, TDS

Vertex TA

Business intelligence

and analytics

SAP Business Objects

Tax data

management

Tax data

mappings

SharePoint

OWMCtx

Workspace

Direct Connect

• SAP HANA/BW Tax Data Hub and Analytics Application Integrated with core SAP Financials

• Initially address core tax reporting and Analysis

• Staged release Plan to build core and add capabilities over time

• Build true end-to-end tax/finance process on SAP

• Integrate other tax applications

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Enterprise Insights for Tax – Getting started


Polling question #5

Is your company currently upgrading or planning to upgrade to SAP/HANA?

a. Currently have SAP/HANA

b. Planning within the next 12 months

c. Planning within the next 12 to 24 months

d. Currently no plans to update

e. PwC participant

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Tax Function of the Future series – What’s next!

May 4, 2017 - 12pm EDT

Robotic Process Automation (RPA)

What Tax needs to know NOW

April 19, 2017 - 12pm EDT

State tax predictions-data,

process, & technology

Sign-up today by clicking the link in the resources section of the webcast

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For the latest on Tax Analytics…

Follow us on Twitter and check out what everyone is saying using #TaxReimagined

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@DrBergB

@ruggles_andyPwC Tax

Data & Analytics

Reimagine the possible with Data & Tax Analytics

@PwC_Tax

@davidnickson

Thank you!

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or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in

reliance on the information contained in this publication or for any decision based on it.

© 2017 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes

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Documents

Tax Function of the Futureevent.lvl3.on24.com/event/13/66/18/2/rt/1/documents/resourceList... · •Leveraging SAP for Tax ... Predictions –Enterprise data within the Tax ecosystem