United Kingdom

Tax Management Consulting 

Managing tax in a large organisation is a complex task. What is leading practice and what are other large companies doing to manage taxes across their business?
Tax Management Transformation

As tax functions struggle to cope with mounting regulatory and cost pressures, leading organisations are seeing that a transformational approach can show the way forward.

 

Knowing where to start can be a daunting task. In our experience the challenges and the solutions can be grouped into the key elements of Governance, Compliance and Technology.

Governance

Governance

What is your vision and how can you make it happen?

 

Businesses have not always given tax the attention it deserves. But the attitudes of governments, shareholders and boards of directors to the management of tax are changing and managing tax risk and reputational issues are now high on the agenda.

 

There is an increasing focus on the commerciality of the way in which businesses govern tax, both in terms of what the strategic objectives are and how they should be achieved in practice. We have seen that progressive businesses are implementing a governance framework which takes account of the inter-dependencies of the operational issues they face.

 

Actions tax functions may consider:

 

  • Establish a clear tax vision and strategy, aligned to the business objectives of the wider organisation, which articulates how the tax function will deliver value.
  • Determine your appetite for risk, how you manage reputational issues and how you communicate your tax position to your internal and external stakeholders.
  • Create the right operating model for your tax function to deliver the agreed tax strategy whilst providing flexibility to deal with future changes.
  • Assess your resourcing requirements. Determine how many people are needed, what skills they need, where they should be located and what they should be responsible for.
  • Implement a governance and control framework that defines which taxes the tax team are responsible for, how they will be managed and monitored, and sets the operating standards and policy by which the organisation should manage its tax risks.
  • Determine how the tax function will be measured. Having the right KPIs helps to drive the right behaviour and helps Tax to demonstrate to the business, the CFO and the board that it’s delivering on its objectives

Compliance

Compliance

How do you manage your statutory obligations in the most efficient and effective way?

 

We are seeing a trend toward business centralisation. But as finance functions transform their structures, are Tax functions keeping pace with this change, and are they considering all of the sourcing models available to them in meeting their legal, fiscal and statutory obligations?

 

Actions tax functions may consider:  

 

  • Understanding your real cost of compliance and build a business case for change to ensure you are getting the right return on your investment.
  • Assessing your sourcing options to determine how you can manage your tax and statutory obligations in the most efficient and effective way.
  • Ensuring your compliance sourcing model aligns with your business strategy and assess whether you need a common strategy and approach for compliance for all taxes.
  • Streamlining, standardising and automating existing processes which may increase productivity and identify potential cost savings.
  • Proactively managing your relationships with tax authorities, and so managing tax compliance risks.

Technology

Technology How can technology improve your efficiency and control?

 

Technology can be essential to the effective management of tax and can be the key to releasing resources from compliance and validation activity and also more effective management of risk. But all too often, businesses will fail to maximise the tax functionally of existing finance platforms, or will invest in additional tools without clear strategy over what they need to achieve.

 

Key technology considerations include:

 

  • Ensuring your existing finance and/or ERP systems are properly tax sensitised to provide standardised tax determination and reporting functionality across your business.
  • Putting in place the right tools to give you all the management information you need over tax filing, payments and risks across your business.
  • Identifying any weaknesses in your business and tax processes and put in place data analysis tools to act as a compensating control.
  • Delivering potential cost and resource savings by reducing the time spent on consolidating, analysing and reporting data through greater automation.
  • Accessing faster, more accurate reporting and forecasting data, aligned to clear business metrics, to enable informed strategic decisions and improved performance.

 

Why KPMG?

 

KPMG has an integrated team, covering all taxes, with the requisite skills and experience to help our clients transform the way in which they manage taxes.

Contact

Julie Hughff

Julie Hughff

Partner

KPMG in the UK

020 7311 3287

Email Julie

Video - The current state of compliance

Video - The current state of compliance

 

Chris Scott, Head of Global Compliance Management Services, talks about the current state of tax compliance, governance and processes as well as global trends in these areas.