KPMG & General Motors: AUTO Industry – …...and Tax technology solutions including Onesource...

I120 - KPMG & General Motors: AUTO Industry – Automating Tax, Autonomous Vehicles, and Auto Sharing

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Chaitanya KollaManager – Tax SolutionsGeneral Motors, Global Tax Solutions

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Confidential and Proprietary

Chaitanya KollaChaitanya Kolla has over ten years of consulting experience implementing SAP and Tax technology solutions including Onesource Indirect tax determination engine. Chaitanya joined General Motors four years ago and is currently the Manager of Tax Technology group leading SABRIX implementations and Data Analytics projects. Chaitanya has an undergraduate degree in Electronics and communications and a Technical diploma in Business administration and Project management from University of California, Berkeley.

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Cory McClureSenior ManagerKPMG, Transaction Tax Systems

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Confidential and Proprietary

Cory McClureCory is a Senior Manager in KPMG’s transaction tax system practice. He is a tax technology specialist with extensive global indirect tax knowledge, having worked in many areas in the tax technology space. His career started with the tax technology company Sabrix, (now part of Thomson Reuters). After his time at Sabrix, he was a tax technology consultant at Alvarez & Marsal. Prior to joining KPMG, Cory worked in industry at a multi-national automotive manufacturer as the Indirect Tax Process Manager with global responsibility and focusing on a global tax engine and SAP roll-out. He also performed sustain activities for tax calculation in over 140 countries.

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Confidential and Proprietary

ObjectivesUpon completion attendees will be able to identify how ONESOURCE Indirect Determination is adapting to changes in the automotive industry and changes in tax calculation as the industry evolves.

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Confidential and Proprietary

Agenda The Evolution of General Motors New Roads mean New Challenges

Using ONESOURCE Content to Respond

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Confidential and Proprietary

The Evolution of General Motors

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Confidential and Proprietary

Bikes

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Confidential and Proprietary

eCommerce Challenges:

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Confidential and Proprietary

Tax Challenges

New Rates/Fees

New Logic

New Concepts for Tax

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Confidential and Proprietary

New Roads means New ChallengesVehicle rental and ride sharing goes beyond sales tax

• Convention fees • Rental taxes • Coupons, Discounts, Loyalty Program• Full and Partial Refund scenarios• Flexible pricing

eBikes• Fees and taxes

Other challenges• Situs challenges• Constant change in the business model

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Confidential and Proprietary

Guiding Principles• Leverage standard content as much as possible

• Leverage the ONESOURCE toolkit

• Needed some special data in the source system--Start and end date, number of rental days, Initial and Final

• Some customization required, but limited

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Confidential and Proprietary

Examples• Chicago Rental tax – Personal Use Vs Business Use. Chicago rental tax of 9%

applies on a vehicle rental if the personal use is more than 50%.

• Boston Weekly billing vs Final billing.

• Denver County Vehicle Rental Tax(Custom Authority)

• Set quantity from rental days(TransEditor logic)

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Confidential and Proprietary

Chicago Rental tax Scenario 1: Personal use exceeds 50%. Billing system sends the % of usage to Determination in a custom attribute. Custom rules are built in “IL - CHICAGO, CITY RENTAL TAX” authority to drive the 9% tax rate

Source: General Motors

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Confidential and Proprietary

Chicago Rental tax Scenario 1: Personal use exceeds 50%. Billing system sends the % of usage to Determination in a custom attribute. Custom rules are built in “IL - CHICAGO, CITY RENTAL TAX” authority to drive the 9% tax rate

Source: General Motors

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Confidential and Proprietary

Chicago Rental tax Scenario 1: Personal use exceeds 50%. Billing system sends the % of usage to Determination in a custom attribute. Custom rules are built in “IL - CHICAGO, CITY RENTAL TAX” authority to drive the 9% tax rate

Source: General Motors

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Confidential and Proprietary

Chicago Rental tax Scenario 2: Personal use is less than 50%. Billing system sends the % of usage to SABRIX in a custom attribute. Custom rules are built in “IL - CHICAGO, CITY RENTAL TAX” authority to drop the 9% tax rate

Source: General Motors

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Confidential and Proprietary

Scenario 1 - Boston Weekly Billing

Source: General Motors

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Confidential and Proprietary

Scenario 2 – Boston Final Billing

Source: General Motors

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Confidential and Proprietary

Scenario 2 – Boston Final Billing

Source: General Motors

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Confidential and Proprietary

Scenario 2 – Boston Final Billing

Source: General Motors

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Confidential and Proprietary

Scenario – Denver County Vehicle Rental(Custom Authority)

Source: General Motors

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Confidential and Proprietary

Scenario – Denver County Vehicle Rental(Custom Authority)

Source: General Motors

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Confidential and Proprietary

Scenario – Denver County Vehicle Rental(Custom Authority)

Source: General Motors

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Confidential and Proprietary

Scenario – Denver County Vehicle Rental(Custom Authority)

Source: General Motors

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Confidential and Proprietary

Set quantity from rental days(TransEditor logic)

Source: General Motors

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Confidential and Proprietary

Set quantity from rental days(TransEditor logic)

Source: General Motors

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Confidential and Proprietary

Notice• Some or all of the services described herein may not be permissible for KPMG audit clients and

their affiliates or related entities.

• The following information is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

• The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

• The KPMG name and logo are registered trademarks or trademarks of KPMG International.

• © 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.