The challenges facing tax departments are mounting. Governments worldwide are scrutinizing companies’ reporting more closely in an attempt to raise revenue. In response, corporate boards and executives increasingly are demanding greater visibility into direct (income) tax positions and their implications. Their goal is to oversee the process more closely. They aim to plan more effectively to minimize tax expense and exposures while mitigating tax risks. In this environment, tax departments need to provide analyses sooner. They must be able to communicate alternatives and their implications to a wider set of stakeholders faster than ever.
Information technology can address these challenges and enable tax departments to respond effectively to the changing environment. In particular, dedicated software can enable tax departments to better manage their direct tax reporting processes. The dedicated tax provision functionality they offer speeds the processes, enhances control, reduces the chance of errors and ensures consistency. A dedicated tax application that uses a database ensures data integrity and accuracy, which is a benefit as the mandated country-by-country reporting requirements puts a premium on consistency: There is a single version of the truth and the formulas it uses are correct and consistent. A dedicated application also simplifies collaboration because tax data isn’t siloed and is therefore readily accessible.
