The rapid shift towards digital tax administration is adding to the urgency for both intermediaries and multinationals to transform their workstreams from manual to digital. Tax authorities are increasingly exchanging information, where they use a universal language for corporate taxes (e.g., Country-by-Country, DAC6, FATCA, CRS, transfer pricing masterfiles, and local files). This means that companies are also expected to report their corporate tax information in that universal language, which is creating an imperative to modernize operations at a faster pace. One thing is certain, the revenue authorities are transforming at a faster pace than the intermediaries and taxpayers.
This shift in the revenue authority demands in digital tax administration and data exchanges will fundamentally change the tax practices and resources over the next few years… therefore, both intermediaries and multinationals need to redefine the ways that they manage their tax workstreams and start embedding new technologies.
How far advanced is your firm in this new digital age? How are your peers doing?
TaxModel is a specialist in embedding tax technology solutions in intermediary and multinational practices, especially for transfer pricing, tax accounting and DAC6 compliance workstreams. Because the actual daily workstreams for intermediaries are different from those of a multinational, the reasons for starting the digital transformation are also different.
10 obvious reasons why intermediaries should start the digitalization process now
The 10 reasons why an intermediary should start digitalizing its transfer pricing, tax accounting, and DAC6 compliance workstreams are as follows:
- To meet the demands of local revenue authorities regarding the digital administration
- To be able to digitally report to the local revenue authorities
- To know the metrics that revenue local authorities are analyzing regarding your clients
- For the timely preparation of large volume workstreams
- To ensure consistency and quality
- To educate / train tax experts within one office
- To keep an overview of the reporting deadlines and requirements for a single country
- To manage the transfer pricing, tax position, and DAC6 knowledge for a single country
- To keep up with your peers and show your innovative capabilities to your clients
- To prepare for future analytics
Click here to read the 10 obvious reasons for multinationals
If the facts that you are preparing and reviewing include:
- Tens or hundreds of single local transfer pricing files
- Calculating and analyzing hundreds of tax positions
- Assessing and/or reporting on hundreds of arrangements
â€¦ for tens or hundreds of subsidiaries, and again for tens or hundreds of multinationals, then the choice to start your transformation should be a no-brainer.
For example, the EU revenue authorities have already (digitally) determined that the volumes and content of DAC6 reporting are highly unsatisfactory, and have initiated audits on intermediaries and taxpayers to analyze how they are organizing and managing their DAC6 administration. Are you comfortable with being subjected to a DAC6 audit?
TaxModel is your partner in your digital transformation!
TaxModel is able to facilitate your transition away from MS Word for transfer pricing documentation, away from MS Excel for benchmarking and tax accounting, and away from MS SharePoint and webforms for DAC6 administrationâ€¦ all at highly affordable and unrivaled price levels.
TaxModel is also launching a portal – TaxPortal – that is especially designed for the challenging workstreams a typical intermediary is facing.
Are you are done with “old school” tax practices and want to start your firm‘s digital transformation to Tax Advisory 2.0? Then talk to one of our experts, book a meeting via this link!