TE4 - Technology - Indirect Tax Automation 2015-07-14.pptx ...€¦ · • Drivers behind the Tax (technology) transformation • Different operating models for your indirect tax

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The Crystal, London9-10 June 2015

EMEA TMC clientconferenceIndirect tax automation -an overview of ERP, tax(reporting) engines andbuilding a business case

• Drivers behind the Tax (technology) transformation

• Different operating models for your indirect tax automation strategy

• How the market looks at tax technology

• Trends in the (tax) technology landscape

• Changes in your role in regard to indirect tax technology

• How other companies manage these changes

• The importance of building a business case and how to do this

Agenda

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Tax technologyThree factors driving the transformation

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• Businesses look for new waysto create shareholder value

• Growth beyond traditionalmarkets

• Different tax regimes

• Transforming global tax-related processes from adecentralised approach to amore centralised approach

• New requirements intraditional environment(BEPS)

• Applicable rules in newmarkets

• Businesses look for new waysto create shareholder value

• Where (new markets)

• What (new businesses)

• How (built or bought)

• Expansion of tax-specificmodules for enterpriseresource planning (ERP) andenterprise performancemanagement (EPM) systems,as well as Indirect Taxapplications

• Expand of system functionalityfrom a local to a global focus

• Technology becomes acatalyst for re-engineering taxdepartment professionals’roles and responsibilities

Acceleratingglobalisation

Growing regulatory andbusiness complexity

The evolution ofcommercial tax

application

© 2015 For information, contact Deloitte Touche Tohmatsu Limited


Global tax operating models

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Decentralised

Tax regulation Data VAT returns• Data will differ per

country

• Limited transparencyon central level

• Local insight andknowledge

• Manual regulationoverlay

• Potential for highquality VAT returns

• Hard to obtain insightfrom a globalperspective

Centrallycoordinated

Centralised



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Tax regulation Data VAT returns• Data can be compared

• Limited transparency

• Communicationrequired

• Processes can bepartially standardised

• Local knowledge

• Potential for highquality VAT returns

• Communicationchallenges

DecentralisedCentrally

coordinatedCentralised



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Tax regulation Data VAT returns• Data can be compared

• Transparency Impact

• Communicationrequired

• Processes can bestandardised

• Simplified knowledge

• Many integrationsrequired

• Risk regarding quality ofVAT returns

DecentralisedCentrally

coordinated Centralised



(Tax) technology landscapeThe times are changing

Source: Adapted from Gartner’s “Postmodern ERP is Fundamentally Different From a Best-of-Breed Approach” 10



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Challenge your role – facing new expectationsIndirect tax automation – impact to your role?


Indirect tax automation – impact to your role?Plan for your role to change

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Tax departments – finding new balancePlanning and analytics are the future

40%InformationGathering

22%Tax

Adjustments

10%Review

15%Rework

9%Reporting

2%Planning

2%Analytics

10%InformationGathering 10%

TaxAdjustments

10%Review

10%Rework

10%Reporting

25%Planning

25%Analytics

StrategistCatalyst

Current state Target future state


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Indirect tax technologylandscape


Indirect tax technology overview

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VAT dashboard

VAT reviewSMART

(QualitativeAnalysis)

E-Learning(linked to

competencyprofiles)

Knowledge(digitised)

CoreVAT return process

Sharedservices

VAT analytics (Hindsight - Foresight)Businesslegal entity

Other stakeholders (Tax authorities)

ERP Tax engine


Indirect tax technology integrated in the process

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Enrichdata

Core VAT return process

Deloitte VAT data analyticsOperational reporting – Hindsight

• Insights (VAT position - general ledger)• VAT determination• Shared service centre efficiencies• Trend analysis• VAT tests

Deloitte VAT data analyticsAdvanced reporting – Foresight

• Supply chain analytics• Scenario planning (supply chain – business

model)• Integration with other taxes (transfer pricing,

customs)

Business / Corporate / Shared services

Other

Tax engine

SAP

Manualrecords

Data-warehouse

Financialsystems


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Tax transformationThe big shift is happeningnow


Tax transformationThe big shift is happening now – 2020 is around thecorner

Three actions to take away from this session to preparefor 2020:

• Evaluate your global tax operating model• Embed technology in your tax strategy• Prepare for your new role as a catalyst of change

Acceleratingglobalisation

Growing regulatoryand business

complexity

The evolution ofcommercial tax

application



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TE4 - Technology - Indirect Tax Automation 2015-07-14.pptx ...€¦ · • Drivers behind the Tax (technology) transformation • Different operating models for your indirect tax