Headline Verdana Bold...Document Management and Storage •ONESOURCE Workflow Manager •IBM Business Process Manager ... Global Tax Management ERP ERP BI Dashboarding XLS Portal government

Headline Verdana BoldTransformation of the tax function: Future tax operating models & move to digitalMay 2018

Transformation of the tax function 2

A video is worth a million words

Introduction to tax technology


Contents

Our predictions

Trends in the digital economy

Impact on tax operating model

and technology

What now?

Q & A

4Transformation of the tax function

Our predictions


Automation and blockchain have streamlined transaction processing. The majority of transactions are now touchless. Headcounts plummet. Human capacity unleashed.

1


With operations automated, Finance & Tax doubles down on business insights and service. Organizational and enterprise boundaries blur.

2


Tax goes real-time. Periodic reporting will no longer drive operations and decisions.

3


The shift to self-service will accelerate. Radically.

4


New service delivery models emerge for operational finance, business, and tax. Work is completed by a combination of humans, robots, and algorithms. Companies will rethink offshore operations.

5


Finance & Tax applications and microservices will challenge the traditional ERP. Big vendors will be ready.

6


The proliferation of public & private APIs drives data standardization, but it won’t be enough. Companies will still struggle to clean up their data mess.

7


The best way to predict the future is to create it.

- Peter Drucker


Trends in the digital economy

Transformation of the tax function 14© 2018 Deloitte Belgium

Finance and Tax is heavily impacted by disruptive technologies

Evolution of the Finance and Tax Function


Important… or just “buzz” words?

Now Emerging

End-to-endstandardisation

API Automation interfaces allow processes to be standardised and reduced to a smaller number of efficiently executed steps

More time for tax

Robotic Process Automation and Natural Language Processing systems relieve the burden of routine/repetitive tasks

Knowledge delivery

Decision Support can both augment detailed analysis and quickly deal with simpler queries from the wider organisation

Au

tom

ati

on

an

d A

I

Automate as you go

Machine Learning systems learn how to automate data processing by watching you at work, rather than having to be configured

Blockchain

Adoption in the financial services industry is gaining pace but tax use cases still emerging

Expert systems

Deep Learning systems expedite the analysis of complex unstructured data such as tax legislation

Data

driv

en

o

rg

an

isati

on

Analytics and insights

Data scientists managing large datasets and providing deeper insights through statistical methods

Monitoring risks

Visualisations and dashboards support proactive management of critical items in real-time

Data warehouse

Data lakes and platforms such as Hadoop in the wider organisation typically break down historical data quality issues and can be harnessed for more robust and timely data feeds

Real-time tax position

Acting on the best available information to be able to respond immediately to opportunities and risks across the footprint of the organisation

En

vir

on

men

t

Global information exchange

Trend for information sharing between tax authorities (FATCA/CRS, Country-by-Country Reporting)

The digital account

Trend for Tax authorities to calculate tax centrally, more frequently and prompted by information provided by intermediaries, not just the taxpayer


Polling question

Which technology trend do you think will have the biggest impact

on the finance and tax organisation in the next five years?

a. Big Data

b. Process Automation

c. Decision making

d. Democratisation of knowledge

e. Open networks

17


Impact on tax operating model and technology


Tax technology can be confusing – whilst tax systems are getting more and more sophisticated, there is still no single off-the-shelf solutionthat addresses all elements of tax.

Instead, there are a multitude of vendors and systems which makes planning a cohesive, integrated solution a complex and challenging endeavour…

Impact on Tax Technology


Tax technology landscape

•Corptax•BNA Corporate Tax Analyser•E/Source Global Tax Planning•SAP/Oracle EPM modules

Forecasting Solutions

•Collaboration software•ONESOURCE Audit Manager•Sharepoint•Excel•Tax Risk and Opportunities Manager (TROM)

Tax Audit and Risk Management

•ONESOURCE Operational TP•Oracle •Corptax TP Architect•PebbleAge Hyperion TP•Oracle Hyperion Operational TP•SAP PCM

Transfer Pricing

•Deloitte Digital Dox•ONESOURCE Documenter•CCH Global TP library•Benchmarking

TP Documentation

•CaseWare Accounts•CCH Accounts Production•IRIS Accounts Production•ONESOURCE Statutory Reporting

•Sage Accounts Production

Accounts Production

•ONESOUCE Corporate Tax•Corptax•Alphatax•Datev•CCH Tax Integrator

Direct Tax Return

•ONESOURCE Indirect Tax• iVAT•Sales and Use products (US)•Deloitte VAT Smart/VAT Wizard•Sovos

Indirect Tax Return

•Oracle Hyperion Tax Provision•ONESOURCE Tax Provision•Longview Tax Prov. and Reporting•Corptax Provision•Vertex Tax Accounting•CCH Global Integrator•Excel

Global Provision

•IBM InfoSphere MDM•SAP Netweaver MDM•Oracle MDM•Microsoft SQL Server•Winshuttle

Master Data Management

•CCH•Check Point•IBFD•EMC Documentum

Knowledge Resources

•SAP Disclosure Management•Oracle modules

•QlikView•Tableau

Collaboration and Project Management

•SAP and Oracle EPM•IDEA•Anaplan•Automation Anywhere

Reporting and Analytics Results

•Sharepoint•Open Text•HP Content Manager•CaseWare

Document Management and Storage

•ONESOURCE Workflow Manager•IBM Business Process Manager•K-2 Blackpearl•CCH Global Integrator

Workflow and Status Reporting

Tax Dashboards

Entity-Level•Multiple products

Consolidated•Deloitte VAT Smart•Microsoft Navision•CCH Global Integrator•Deloitte Conversion Tool (DCT)

Enterprise-Level•Vertex Enterprise

Tax Data Stores

•ONESOURCE Indirect Tax Determination•Vertex Indirect Tax Solutions•Taxware•FuelQuest•Native ERP•Avalara•Add-ins/add-ons/boutique solns

Indirect Tax Determination

ERP Systems•SAP HANA•Oracle, incl. JDE & PeopleSoft•Microsoft Dynamics NAV•Digita•SageConsolidation, Business Intelligence and Enterprise Performance Management•Oracle EPM•Oracle HFM•SAP EPM•IBM Cognos•Longview CPM

Source Business Systems

Master Data Management

Tax Data Stores Reporting Key OutputsSource Business Systems

Enterprise

TAX DASHBOARD

Workflow, Status, Documents, Analytics

Consolidation Forecasting

ERP

Tax determination

Accounting s/w

Excel

Other systems

Provisioning

Transfer pricing

Tax return s/w

Stat account s/w

Report writers

Single entity

Consolidated

Tax risk reports

Provisions

Returns, forms e-filings

CbC reporting

TP documentation

Statutory accounts

Work papers

Forecasts


© 2018 Deloitte The Netherlands

SAP s/4 HANAGlobal Tax Management

ERP

ERP BI

Dashboarding

XLS

Portal government

Workflow

AppApp

App

Tax Technology Architecture : From Vision to Execution

Transformation of the tax function 22© 2018 Deloitte Belgium

The common Tax technology Journey

All enterprises using ERP’s are going through a similar journey– a toolkit to help you analyze and plan the journey

Ob

jecti

ves

Accele

rato

rs

Use design thinking with

demonstrations to define

the tax technology

solution adoption

strategy that best suits

your business

Develop an

understanding of the

value of tax technology

solution – from definition

of adoption drivers

to P&L impact

Rapid and agile delivery

of tax technology

solution, using

preconfigured solutions

to kick-start project

delivery

Deliver a PoC to review

the architecture use

cases in detail and

identify the impact on

your key processes

Execute deep dives to

further understand the

technical implications

and project deployment

activities/costs

Define your tailored

migration strategy,

target landscape and

transition planning /

roadmap

Define Value Drivers

Build the Business Case

Rapid Solution Deployment

Show Proof of Concept

Deep Dive on Solution & Delivery

Define Integrated Roadmap


Polling question

Which options are you considering to upgrade your ERP/digital

core?

a. Greenfield installation

b. Move to cloud

c. Upgrade current system

d. Don’t know / Not applicable

24


What now?

Transformation of the tax function 26© 2018 Deloitte Belgium 26

Eight strategic questions to consider

1. WHAT is your future digital tax strategy?

2. WHAT work can be done by smart machines and robots?

4. WHERE can the work be done?

3. WHO can do the work?

5. HOW does the future of work change organization design and behavior?

6. HOW does the future of work change leadership?

7. HOW does the future of work change talent, career, and learning?

8. HOW do you develop a workforce experience for the future workforce?

Transformation of the tax function 27© 2018 Deloitte Belgium 27

The Future Finance/Tax Workforce: Seven Forces

Technology is Everywhere Tsunami of Data AI, Cognitive Computing, Robotics

Jobs Vulnerable to Automation Diversity/Generational Change Explosion in Contingent WorkCareers – 100 Year Life


Hold on.It’s going to be

a wild ride.


Q & A

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