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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
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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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Global tax operating models
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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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Global tax operating models
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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
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(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?
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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
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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
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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
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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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