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KPMG’s TaxOne

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KPMG’s TaxOne – Transform your tax function by leveraging best-of-breed tax technology

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KPMG’s TaxOne

  1. 1. KPMG’s TaxOne – Transform your tax function by leveraging best-of-breed tax technology Zurich, 4th June 2015 Hartwig Hoffmann, Christoph Funke Holger Eilers, Andreas Wiesner kpmg.ch
  2. 2. 1© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. Wrap-up and closing Agenda Welcome and introduction to TaxOne Platform TaxOne Compliance Manager & Analyzer Breakout sessions:  A structured Transfer Pricing documentation  Efficient and integrated TaxOne reporting 18:30h – 18:45h 16:30h – 16:45h 16:45h – 17:45h 17:45h – 18:30h Apéro riche18:45h – until end
  3. 3. Welcome & Introduction to TaxOne
  4. 4. 3© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. Tax function evolution 10-15 years ago 5-10 years ago Value Risk The focus of the tax function has evolved over time as its responsibilities have increased and it has been expected to deliver more with less. ■ Ensuring accuracy and timeliness of financial reporting and compliance ■ Managing tax risk and tax authority audits ■ Controlling costs – shared services, outsourcing, etc. ■ Increasing efficiency – ERP implementations, tax technology, etc. ■ Delivering cash tax savings or deferral ■ ETR optimisation Cost Transparency ■ Managing information for country by country reporting, CRD IV, etc. ■ Managing reputation with a focus on tax in the media Today – 5 years ago Today Compliance
  5. 5. 4© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. Do you face the same challenges? Increased complexity of global business models Lack of tax information at headquarter and lack of transparency in tax processes Tight closing deadlines create condensed cycle times for tax information management Financial Controllers have different degrees of understanding in regard to tax requirements Global tax complications such as working with multiple entities, currencies, tax legislations and multi-level tax processes Legal requirements are on the increase but headcount in the tax department continues to decrease Tax personnel spend a significant amount of time manually gathering and validating data and spreadsheets – they have minimal or no time to carry out any value-added analyses
  6. 6. 5© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. TaxOne Reporter TaxOne Planner TaxOne Compliance Manager TaxOne Transfer Pricing Data Manager ■ Monitor and control tax risks and compliance as well as tax payments by using the dashboard ■ Manage all relevant deadlines with tax calendar ■ Flexible Questionnaire functionality ■ Archiving of tax-relevant documents ■ Calculation of current and deferred taxes according to IFRS and local GAAP as well as tax rate reconciliation ■ Consolidated analyses for the individual reporting units ■ Supply of data for notes in various reports/ disclosures in line with IAS 12 ■ Forecast for different tax positions ■ Multi-year planning (e.g. ETR) ■ Tax Controlling ■ Global solution for transfer pricing documentation ■ Supports both centralized and decentralized approach TaxOne – An all-inclusive Tax Information Management Solution TaxOne Contract Manager ■ Corporate governance of contracts ■ Transparency on contractual relationships ■ Transparency on Terms & Conditions TaxOne Analyzer
  7. 7. 6© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. TaxOne – Extract from our References
  8. 8. Transparency on tax risks and compliance
  9. 9. 8© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. Latest Global KPMG Tax Management Study
  10. 10. 9© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. TaxOne Compliance Manager Key functionalities  The dashboard reports on your key figures and statuses, such as deadlines for filing tax returns, tax payments and tax audit risks  Flexible Questionnaire functionality  The tax calendar provides an overview of all deadlines  Monitoring of the status of each tax risk position indicated in red, amber or green  Sophisticated data upload and filing functions for relevant tax documents  Automatic reminder functions that send emails to those responsible when pre- defined deadlines are reached  Flexible definition and monitoring of tax processes
  11. 11. 10© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. Setting the Scene Christoph Funke  Ketinax International AG, Headquarter  Responsible for group tax risk and compliance & treasury Holger Eilers  Acreda GmbH, German entity  Responsible for tax risk and compliance at a local level
  12. 12. 11© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. Benefits of using TaxOne Compliance Manager  Entry and monitoring of tax compliance issues at entity and group level  Monitoring of deadlines with indications (escalation levels) with automatic reminder emails  Grouped overview on single topics (Tax Compliance, Tax Audits, Tax Payments, Consulting Costs)  Easy identification of challenging areas  Group-wide overview of future and past tax payments/reimbursements  Monitoring of deadlines with indications (escalation levels) and automatic reminder emails  Entry and monitoring of tax audit risks at entity level  Group-wide overview of total of tax risks and potentially necessary adjustments to provisions (Tax transparency)  Freely definable process steps and responsibilities  Escalation concept and possibility to attach documents Transparency in tax compliance at both global and local level  Monitoring of enterprise-wide tax risks and obligations Top-down dashboard view on essential tax areas Efficient managing of total tax contribution Flexibility in defining and monitoring ad-hoc processes    
  13. 13. TaxOne Analyzer
  14. 14. 13© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. TaxOne Analyzer Overview  Fully flexible creation of reports individually tailored to your specific demands  Utilization of data from throughout all available TaxOne modules to create a topic related data output in your report format Functionality Features Optional  Comprehensive individual data reporting  Access to all data entered and calculated in each of the modules of TaxOne  Extensive options for report design (e.g. graphs, charts, tables, etc)  Combine relevant information into one report exactly designed down to your specific reporting demand (e.g. creation of Management reports). ➜ Automatic and ad hoc genreation of reports, based on latest information derived for the modules of TaxOne  Several exporting options and report formats: PDF, Powerpoint, Excel, Word, etc.  Data utilization from external data sources  Additional features, such as mobile capability
  15. 15. 14© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. TaxOne Reporter TaxOne Compliance Manager TaxOne Transfer Pricing Data Manager TaxOne Analyzer TaxOne Analyzer File Excel XML SAP; Oracle; Others Data Warehouse Data Mart
  16. 16. 15© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. TaxOne Analyzer Management Reporting Examples Country by Country Reporting
  17. 17. Efficient and integrated Tax Reporting with TaxOne
  18. 18. 17© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. Challenges in Tax Reporting Low level of automation Complex business models Coordination with Accounting Fulfillment of IAS12 reporting requirements Tight deadlines High risk of data inconsistencies Lack of transparency in regard to key factors Tax Function
  19. 19. 18© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. Calculation of current and deferred tax and assessment of tax disclosures with REPORTER TaxOne Reporting process (Local) ERP systems Consolidation system Group reporting 4) Booking of tax values 5) Validation between booked and calculated values in TaxOne 6) Validated tax data available for group reporting 3 (Local/Global) ERP systems 1 1) Import of balance sheet values (Local GAAP/IFRS) via automatic Web Service or CSV/XML 2) Tax data processing and calculation (current and deferred taxes) 3) Automatic generation of notes
  20. 20. 19© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. TaxOne Reporter • Pool of data is consistent, thanks to a standardized tax calculation and reporting on ONE web-based platform • Data is highly transparent and readily available • The centralized database makes local entity entries immediately available group-wide • Key positions and how they develop is easily retrievable both at group and entity level • High degree of integration into exiting system landscape to ensure maximum process automation • High degree of automation in reduces manual work (opening balances, losses, tax groups) • Notes to financial statements according to IAS 12 are automatically generated
  21. 21. 20© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. TaxOne Setting the Scene 2014 year-end reporting for Accreda GmbH Monitor and review 2014 consolidated group reporting Correct entries for final submission Review corrections and create group reports Christoph Funke  Ketinax Group, Headquarter  Responsible for group-wide tax reporting Holger Eilers  Baida, Singapur  Responsible for tax reporting at local level
  22. 22. 21© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. TaxOne Benefits of using Reporter  Develop, utilize and valuate tax losses  Automatically consider balance sheet differences that are income statement-related  Calculate deferred taxes on balance sheet differences and tax losses  Benefit from the automatic true-up functionality  Customizable import interfaces (manual or automatic) to upstream systems: - Import of balance sheet and p/l account values  Customizable export interfaces (Manual or automatic) to downstream systems possible - e.g. for validation with booked values on consolidation system  Local entity entries immediately available through centralized database  Transparent, detailed group and entity-based overview on the development of key positions  Automatically generate reports required for your tax notes (e.g. Reconciliation & ETR) and further relevant reporting figures  Automatically generate a pool of data for Notes to financial statements according to IAS 12  Benefit from customizable reporting groups  Three planning types are available (multi-year planning, forecast & tax audit simulation)  Automatic import of values from TaxOne modules and from external systems Calculate and report current and deferred tax consistently and in a standardized way  Automatically generate a pool of data and reports for tax notes Interlink it with upstream systems Increase the quality and transparency of your data at local and group level Benefit from a fully integrated tax planning    
  23. 23. A structured Transfer Pricing documentation
  24. 24. 23© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. TaxOne Module TaxOne Transfer Pricing Data Manager – Design Principles • For most countries there is today a historical track record how tax authorities deal in practice with transfer pricing documentation requirements. Based on this experience there is a clear tendency that tax authorities are much more focused on specific transfer pricing information and are not any more predominantly interested in a large quantity of information • This gives space to taxpayers to streamline their documentation reports and establish lean and more efficient documentation approaches. Such documentation approaches usually show the following features which are also the design principle of the TaxOne Transfer Pricing Data Manager:  High flexibility through modular structure  Information is only used once in order to avoid double work and thus inconsistencies  Central coordination and local customization  Focus on penalty protection and shift in burden of proof
  25. 25. 24© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. TaxOne Module TaxOne Transfer Pricing Data Manager – System Structure Level 1 – Documentation Period ● Definition of documentation period (e.g. 2014) ● Select group entities for TP documentation Level 2 – Master Data ● Definition of value chains & transaction groups ● Attribute of roles to legal entities (e.g. distributor, manufacturer) ● Pre-setting of functions & risks and transfer pricing analysis parameters Central users (e.g. GroupTax) only Level 3 – Edit documentation ● Add specific information for each transaction ● Transfer pricing analysis including arm`s length test for each transaction / legal entity Input by local or specific users (e.g. SSC)
  26. 26. 25© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. TaxOne Benefits of using Transfer Pricing Data Manager ■ Support in the preparation and defense of the transfer pricing documentation in local audits ■ Reduce the risk of penalties and income estimation because of violations against legal obligations to prepare documentation ■ Efficient handling of documentation workload by relying on structured information entry screens, templates and default texts ■ Standardized documentation processes, which consider data entered regarding previous periods ■ Documentation completeness check on a company level, value chain level and transaction level (traffic light system) ■ Available reports enable a risk oriented review considering transaction amounts and transfer pricing methods applied ■ Involvement of central and local resources taking into account their specific knowledge ■ Consistency among the information provided locally is ensured by documentation processes and central review functionalities ■ Cost savings by preparing documentation or documentation elements in house (minimization of consulting costs) ■ Benefit from roll-forward functionalities in TP Data Manager that minimize workload in future periods Being prepared for audit Combine central and local knowledge and resources Efficiency through structured and standardized processes Risk oriented review and risk management Realization of cost savings    
  27. 27. 26© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. Centralized web based Transfer Pricing Documentation ■ Worldwide increasing transfer pricing documentation regulations and compliance burden ■ Growing focus by specially trained tax authorities on transfer pricing ■ Finding a balance in order to be compliant in the area of transfer pricing but limiting the efforts and costs internally ■ Lack to provide evidence during tax audits especially when tax audit covers periods some years ago ■ Having efficient processes to ensure group wide consistent transfer pricing document and reasonable compliance costs SolutionChallenges TaxOne Module TaxOne Transfer Pricing Data Manager – Summary ■ Realization of cost savings by preparing Transfer pricing documentation in house and roll- forward functionalities ■ Being prepared for tax audits and reduce risks of penalties and income estimation ■ Preparation of transfer pricing documentation possible within short- time frame due to modular concept ■ Already existing transfer pricing documentation can be stored and submitted to tax authorities immediately ■ Combine central and local knowledge and resources and therefore ensure consistency among the information provided locally Benefits TaxOne module TRANSFER PRICING DATA MANAGER § =
  28. 28. Wrap-up and Q&A
  29. 29. 28© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. Journey to the Tax Function of the Future Establish the as-is position Implement effective technology solutions Embed efficient processes Deploy the right people with the right skills Design the organisational model Tax function of the future Manage risk and create appropriate KPIs Develop the tax vision and policy Organisational Model Process and Responsibility Systems and Technology Data and Information People and Capability Governance and Risk Performance Management
  30. 30. 29© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved. Enabling the tax department of the future – key areas Improving accountability – to clarify the tax department’s roles and responsibilities within the context of a company-wide, board-approved tax governance framework Improving standardization – to automate and strengthen tax processes and controls and ensure all tax compliance obligations are met Improving connectivity – between the tax department and other business areas so they work together as proactive partners in setting and advancing business objectives
  31. 31. Thank you!

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