Transforming the tax function can be achieved through an operating model consisting of five component parts; the right people, data management, process and controls, technology, and security.
RIGHT PEOPLE. RIGHT SKILLS
Ensuring you have the right people with the right skills (technical, local and global) to cope with the increasing workloads and ability to continually improve the end-to-end compliance cycle.
Ensuring you can automate the collection of your data from core ERP systems with the ability to filter, validate and drill down on data without the need for manual intervention. Having data management solutions that have a history of ERP integration is a must.
PROCESS AND CONTROLS
Ensuring you have designed and documented activities, segregation of duties, processes and controls that make up the end-to-end compliance cycle. Technology can then be utilised to automate, enforce and manage the above.
Ensuring the leadership teams have visible tax calendars, filing status, audit and notice monitoring, legal entity management and tax control dashboards. Also making sure that the core delivery team has automated data collection, rules-based process workflow and duties allocations, centralised document management, exceptions reporting, calculation/computation engines and statutory reporting solutions.
Given the increasing pressure on data privacy (such as the General Data Protection Regulation) and continuing cyber security breaches it is important that any solutions and companies chosen meet with the approval of your IT security teams. There are a variety of consulting and technology tools available to help organisations with security and all of the above so that the tax function can be transformed.