PREPARING FOR FUTURE WORKLOAD

Due to the changing regulator and media attention landscape, those accountable for tax need to ensure they have an appropriate tax function in place that is capable of dealing with the increased pressure and workloads from external compliance and reporting, an increasing requirement for internal advice relating to strategic activities, increasing internal governance demanding effective processes and controls and investment in technology to manage the core tax compliance cycle and accuracy of data.  

THE FUTURE TAX FUNCTION

Ultimately, the tax function of the future should have the ability to manage the end-to-end core tax compliance cycles with limited risk, supply accurate data in real time (both externally and internally) and respond to tax enquiries in an efficient and cost-effective manner. 

As opposed to handling each compliance process in silos, the tax function of the future should have the ability to use the same data and the same methodology for all major tax outputs whether that be direct tax compliance, indirect tax compliance, customs & duties compliance, payroll / social tax compliance, tax risk profiling, tax provisioning, transfer pricing documentation, tax planning and regulator response. 

INTEGRATION WITH FINANCE

In addition, the tax function of the future should fully integrate with the finance function for integrated data, workflows, controls and drill down data capabilities. This will eradicate ‘manual pass over’ points between the functions for example with statutory accounting and reporting whereby multiple parties will be able to work on the same document using real time and accurate data. Finance teams over the years have gone through several transformation projects streamlining people, data, process, controls and technology so this will be a familiar journey for them.