Indirect tax data analysis final
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  • Data collection consists of:Financial dataWarehouse/Plant dataLogistic information data

Indirect tax data analysis final Indirect tax data analysis final Presentation Transcript

  • Data-analysis 2012
  • About the KEY Group • Boutique firm: small, gifted and expert in a specialized area. We are happy to be small, selective and independent - no time consuming audit-based conflict checks • The KEY Group is specialized in „Business Control‟, „Information Technology‟ and „Indirect Tax‟ • The partners have proven track records. The CEO and CFO were partner at Ernst & Young and have vast experience with multinational businesses and dealing with tax authorities • The COO held the position of indirect tax technology leader at one of the largest multinationals in the world (Oil & Gas). The KEY Group clients have access to more of 10 years of his practical industry experience and knowhow of a leading MNC indirect tax practice. This is not only about setting the indirect tax objectives but also insight in the roadmap as well as how to actually realize • The KEY Group not only advises but is well suited to implement and where necessary take an interim management function • What you see is what you get: the client team deals with the KEY Group partners personally from start to finish. We see added value in working on site • The KEY Group has excellent recommendations of clients and former colleaguesT+31 6 53 994 874
  • About the KEY Group drs. RobbertHoogeveen RA (1963) is COO of the KEY Group and has been the „Indirect Tax System and Technology Leader‟ of Shell for over 10 years. Prior to that Robbert was for 11 years IT Auditor at the Dutch Tax authorities. Robbert is specialized in integration of tax requirements, business processes and system functionality, design of solutions based on legal and business requirements, implementation and review of VAT in ERP or tax engines, VAT compliance design, indirect tax control framework and statistical sampling.T+31 6 53 994 874
  • About the KEY Group drs. ArjanHassing RE RA (1966) is CFO of the KEY Group. Arjan was IT Risk and Assurance Partner at Ernst & Young Netherlands and Belgium and prior to that financial auditor at Deloitte. Arjan lectures Internal Control at the Tilburg University, furthermore he speaks at seminars about statistical sampling and data analytics. Arjan is an expert in providing financial audit support as IT auditor and in Quantitative Services for Tax purposes including data analytics and statistical sampling.T+31 6 53 994 874
  • About the KEY Group • Richard Cornelisse LL.M (1968) is CEO of the KEY Group. Richard was Indirect Tax Partner at Ernst & Young and in charge of the Indirect Tax Performance Advisory Practice in The Netherlands and Belgium. • Richard helps mid- and large sized companies understand how to improve the efficiency and effectiveness of their Tax Function respectively Tax Control Framework. Published lots of articles in specialist literature regarding Global Indirect Tax Management and shares his views via opinions in newspapers and various internet sites.T+31 6 53 994 874
  • KEY to success are our unique skills teamed upT+31 6 53 994 874
  • Validate and rank your company‟s priorities • Cost reduction: - Realize cash saving - Cash flow optimization - Workforce is efficient and effective at the same time • Effective global tax rate/reasonable tax costs • Ensure compliance with law and reporting requirements • No surprises during tax audits (any assessment will be in line with company‟s risk appetite)T+31 6 53 994 874
  • OECD survey (2010) The survey over 2010 of the Organization for Economic Cooperation and Development (OECD) shows: • More than 80% of businesses cannot recover all of their foreign VAT • Most OECD countries have implemented VAT relief procedures, these are frequently complex • 72% of the businesses surveyed said that they found these procedures “difficult” and that more than 20% are unable to recover any foreign VAT • Many businesses said that they recover less than 25% of the VAT incurred in foreign countries • A third said that these difficulties influence decisions on investment.T+31 6 53 994 874
  • KEY Group core services • Statistical Sampling:
Tax audit methodology of the Dutch Tax Authorities and can be used by company for proactive audit defense: pre-audit and detective control resulting in quantification of potential amount of exposures and/or savings • Data Analysis: - cost reduction
- risk management - both cost reduction and risk management • Audit Defense: - manage proactively with tax authorities with aim to avoid future time consuming tax audits • Performance Improvement Projects - Process and controls assessment, remediation and/or improvement - Assessment, remediation and improvement of the VAT/GST functionality in IT systems - Procedure manuals and user specific training - Set up an Indirect Tax Strategic Plan for short, mid and long term
T+31 6 53 994 874
  • Our Work Process • Get a clear understanding of your business and indirect tax priorities • Challenging your indirect tax objectives via benchmarking with leading practices of other multinationals • Document the objectives and determine the assistance needed from the KEY Group • Set up roadmap, roles and responsibilities and realize the KEY milestones • Our end deliverable facilitates effective communication to other stakeholders: - executive summary of results and recommendations, - state of the art graphics overviews via use of third party software, - facilitates prioritization (e.g. link to business objective, volume of transactions, detailed measurement (dollar/euro) of potential risk respectively savings - provides overview of actions needed and impact of any suggested change on business operations (pragmatic and flexibility check)T+31 6 53 994 874
  • Results MNC findings and example of end deliverableT+31 6 53 994 874
  • KEY Group‟s Data Analytics: roadmap 5. 2. 4. 1. 3. CLIENT DATA EXTRACTION DATA INDIRECT TAX VERIFICATION DATA REVIEW VALIDATION ANALYSIS and FINAL REPORTThe KEY group has defined all All received data will be Diagnostic reports produced Unique approach utilizing data Client receives reportVAT sensitive Data elements validated for completeness and with summary analysis from the different phases in the containing: correctness. PGS and/or OTC processesClient extracts data files from Business Intelligence reportsfor – Opportunity and/orERP (SAP, Oracle, etc..) Basic checks on data format accounts payableandreceivable Based on experience in exposure assessment will be performed complex multinational – Remediation adviceClient specific VAT Information Business process analysis environment both from ERPDocument Request Standard reconciliation – Implementation roadmap and business process between data and returns perspective Optional: KEY Group hasMultiple data formats possible: the experience to actuallydatabases, spreadsheets, print, If any issues are identified the Additional analyses are definedPDF etc. Client will be contacted to implement the advised in a combined effort between changes agree on new data request KEY group and the clientIf needed KEY Group supportson site Data validity and any other questions T+31 6 53 994 874
  • Data Analysis Queries about Cost ReductionT+31 6 53 994 874
  • Data Analysis Queries about RisksT+31 6 53 994 874
  • Data analytics Examples deliverables, diagnostics and measurementT+31 6 53 994 874
  • Example of data query•Objective:Overview all monthly VAT returns, avoidsfluctuations in VAT positions in some countries•Analysis:Number of countries with payments in somemonths and reclaims in other monthsIn many cases incorrect invoices/postings is theroot cause•Action taken:For countries with unexpected VAT amountsimplement more detailed controls T+31 6 53 994 874
  • Example of data query•Objective:Identify postings with potential “hidden” VAT•Analysis:There are postings in the system with potential “hidden” VAT. Highlighted example: VAT at importposted as costs on GL account 724xxxx•Action taken:Instruct AP how to process invoices with VAT at import properly T+31 6 53 994 874
  • Example of data query D = Delivery P = Pick-up•Objective:Check how Inco-terms are used in the tax determination•Analysis:There are inconsistent data in the billing transactions (Shipping conditions thatdon‟t match the Inco-terms)•Action taken:Awareness training for Sales BusinessAdditional check on customer masterdata Shipping conditions: 10 = Pick-up 11 = Delivery T+31 6 53 994 874