Corporate tax compliance is facing an increase in regulatory changes and obligations which brings about new challenges and makes ‘compliance’ increasingly business critical.
As well as the increased complexity of compliance requirements within the corporate tax world, there is a need to be ready for real time reporting, digitally linked audit trails with Making Tax Digital and the new regulation changes, such as Pillar 2.
The challenge that organisations face is the need to ensure data quality and robust tax and accounting processes have the relevant controls to meet the more frequent and detailed reporting cycles. Having processes and technology that can deal automatically with disparate data sources, provide detailed transactional analytics and the ability to submit in the required digital format is key to meeting these new requirements efficiently and accurately.
This is why we have been agile in our continuous development of our Corporate Tax Compliance Services, as part of our Connected Tax Compliance solution, to help you to keep pace with all the changes coming and be ready for the next steps of the digital data led requirements that are coming.
Future of corporate tax compliance
Regulatory developments will force change with regard to disclosures and the effectiveness of controls which will, in turn, impact corporate tax compliance processes.
It requires businesses to:
- Manage compliance proactively (rather than it being a regular look back activity)
- Implement a comprehensive control framework that provides assurance over data and systems
- Have clear audit trails and documentation
- Proactive Technology enabled compliance monitoring in real time and not as a ‘period end’ compliance activity.
How we can help
Technology and process transformation have helped compliance evolve - allowing companies to achieve so much more than in the past. So whilst the ‘compliance’ complexity may be growing, leveraging our Connected Tax Compliance approach will open up a range of new benefits - freeing up resources, improving quality, lowering cost of delivery while at the same time delivering digital data sets and insights to make better business decisions.
For example, we have a number of clients where we manage large data extractions which are transformed, automated and templatted into standardised outputs. Feedback from our clients tells us that these are easier to review and understand.
Our standardised data approach means data insights are brought to life with digital dashboards forming part of our everyday delivery. In a world where tax is more important than ever, your regulatory requirements shouldn’t be a burden. Connected Tax Compliance delivers a simpler, faster, smarter experience.
Transforming corporate tax compliance at a German multinational
ZEISS has been a client of PwC Germany’s tax and legal services team since 2013. In September 2020, PwC started using the firm’s newly-launched Engagement Center (EC) compliance platform to help ZEISS simplify its global compliance obligations.
What we offer
PwC's Corporate Tax Compliance Services team can provide a range of services, enabling you to focus on your core business operations, these include:
Corporate Tax Compliance
With the introduction of Making Tax Digital (MTD) we expect to see the need for real time reporting, digital data requirements and much more. We have been working closely with all our business partners to ensure we are ready for the MTD and our approach to compliance is technology led with a focus on data quality and transformation.
Corporate Tax Accounting
This has become increasingly more complicated with many legislative changes impacting the calculations. Our team of experts focus on what's new and up and coming so nothing is a surprise and our clients have confidence in their statutory account disclosures with all the relevant supporting papers. We also know the importance of ensuring we don’t repeat the ask of data, which is why the digital linking of data at the tax accounting stage is automatically linked to the delivery of your tax compliance to ensure we are as efficient and effective as possible.
Tax Consolidations
Tax consolidations and group tax reporting however large or small can be complex. Our team has in-depth knowledge covering all aspects of the various GAAPS and provide the level of support you need with your auditors.
Tax Data Automation and Insights - Transaction Data Assist (TDA)
Our cloud-based TDA technology simplifies the automation and streamlining of your corporate tax data collection, transactional analysis and compliance process. TDA is an enabler to support standardisation and automation of corporate tax compliance getting you ready for MTD by improving risk management and efficiency, creating manageable and well understood processes that can be resourced flexibly.
The Future of Compliance
Pillar 2 regulations are fast approaching and will be a significant shift in the world of tax! The changes coming will have an impact on group trax reporting as well as compliance obligations with many jurisdictions introducing a domestic minimum tax requirements, which will vary across the world as to when it is introduced.
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