Corporate Tax reporting is becoming more and more complex. This presentation discusses how you can automate tax reporting as part of close, consolidate and reporting cycle.

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© 2014 IBM Corporation
Corporate Tax Reporting / Financial
Solutions
Presenter: Paul Young, CPA, CGA – Proven Practice Adviser – Risk
Analytics, FOPM/FPM and Close, Consolidate and Reporting
Day: October 2, 2017

2. © 2012 IBM Corporation
Agenda
September 9,
2014
• Accounting for Income Taxes
• FASB
• IFRS/IASB
• BEPS
• Tax Reporting Templates/Solutions

3. © 2012 IBM Corporation
Author / Bio
September 9,
2014
• Paul Young, CPA, CGA
• SME – Financial Performance Management Solutions (TM1, Cognos Controller and
Cognos Disclosure Management, OpenPages, Algorithmics, Cognos Integrated Server,
Cognos Command Center and Datawatch)
• SME – Business Processes and Financial Management Reporting
• Close, Consolidate and Reporting
• Internal Audit and Controls
• Industry Experience
• 15+ years in Corporate Reporting, Budget & Forecasting, Costing, Business Process
Management, Internal Audit and Controls, Risk Management, Financial Analysis,
Costing
• 11+ years in financial solutions (FOPM, FPM, Risk, Office of the Finance, Risk
Management)
• 8+ years teaching Advance Finance, Advance Accounting, Public Finance and
Advance Management Information Systems
• Blogger in areas like Finance Analysis, Government policies, market segment

4. © 2012 IBM Corporation
What is Corporate Tax Reporting?
September 9,
2014
A corporate tax is a levy placed on the profit of a firm to raise taxes.
After operating earnings is calculated by deducting expenses
including the cost of goods sold (COGS) and depreciation from
revenues, enacted tax rates are applied to generate a legal obligation
the business owes the government.

5. © 2012 IBM Corporation
Tax Reporting concerns for Business
September 9,
2014
• Research and Development Tax Credit/Reporting
• Calculation the monthly corporate tax provision
• Reporting requirements under BEPS
• Tax Reporting/Planning by jurisdiction
(Understanding the rules)
• Country
• Provincial and State
Businesses are looking to streamline reporting
include tax reporting as part of the close,
consolidate and reporting cycle

6. © 2012 IBM Corporation
Accounting for Tax / FASB
September 9,
2014

7. © 2012 IBM Corporation
IFRS / Accounting for Tax
September 9,
2014

8. © 2012 IBM Corporation
BEPS Reporting
September 9,
2014
Base erosion and profit shifting (BEPS) is a tax
avoidance strategy used by multinational
companies, wherein profits are shifted from
jurisdictions that have high taxes (such as the
United States and many Western European
countries) to jurisdictions that have low (or no)
taxes (so-called tax havens).
57 Countries signed on to BEPS
KPMG – March 10, 2017

9. © 2012 IBM Corporation
Sample Template / Taxation
Reporting
September 9,
2014
• Build OLAP model
that can calculate
Current and
deferred taxes
• Import data into
reporting tool for
final reporting

10. © 2012 IBM Corporation
Sample Template / Taxation
Reporting
September 9,
2014
• Build OLAP model
that can calculate
Current and
deferred taxes
• Import data into
reporting tool for
final reporting

11. © 2012 IBM Corporation
Solutions
September 9,
2014
• IBM Watson Analytics /Actuarial calculations -
https://www.ibm.com/ca-
en/marketplace/watson-analytics
• IBM Cognos Disclosure Management /
Reporting tool - http://www-
03.ibm.com/software/products/en/cognos-
disclosure-management

12. © 2012 IBM Corporation
Tax and Artificial Intelligence
September 9,
2014
Source - http://ww2.cfo.com/tax/2017/09/ai-impacts-tax-
function/?utm_campaign=CFOWeekly&utm_source=CFO-
email&utm_medium=email&utm_content=CFOWeekly_Friday_2017-9-
29&utm_term

13. © 2012 IBM CorporationSeptember 9,
2014
• Additional Sources
• Paul Young (email: paul.young@ca.ibm.com)
• IBM Close, Consolidating and Reporting, Risk and Planning Analytics
• http://www.ibm.com/analytics/us/en/business/financial-reporting/
• http://www-03.ibm.com/software/products/en/planning-analytics
• http://www.ibm.com/analytics/us/en/business/governance-risk-
compliance/
• Reporting Pain Points -
http://www.slideshare.net/paulyoungcga/reporting-challenges-for-
accounting-and-finance-january-2017
• Pension Reporting
• https://www.slideshare.net/paulyoungcga/pension-accounting-rules-
and-automating-solutions