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 multinationals should start the digitalization process now
While intermediaries need to prepare, review and monitor hundreds of single local files, tax positions, and DAC6 arrangements for hundreds of subsidiaries and multinationals, a single multinational is typically focused on meeting the documentation requirements or preparing the tax positions for multiple affiliates in multiple countries. This is quite the opposite.
The 10 reasons why a multinational should start or require their advisors to digitalize transfer pricing, tax accounting, and DAC6 compliance workstreams are to:
- Meet the demands of multiple revenue authorities regarding digital administration
- Be able to digitally report to multiple revenue authorities
- Know the metrics that revenue local authorities are analyzing about you
- Ensure the timely and consistent preparation of workstreams globally
- Meet multiple tax regulatory requirements
- Educate / train non-tax experts globally
- Maintain an overview of the reporting deadlines globally
- Have 1 platform to manage your TP, tax positions and DAC6 globally
- Inform and educate your internal stakeholders (e.g., CFO)
- Prepare for analytics globally for prediction purposes
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 administration. All at highly affordable and unrivaled price levels.
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 here!
