Efficiency, certainty and cost effectiveness are important elements of effectively managing taxes in today’s complex business environment. Technology plays a vital role in helping financial and tax managers address complex global business needs and in freeing up limited resources to focus on other important business initiatives.
Professionals from KPMG’s global network of member firms will be available to demonstrate proprietary tax technology tools that can help tax managers unravel complex and time consuming processes and enable efficient and timely tax decisions. To gain insights into how technology can help improve your tax processes or provide greater visibility into critical business and tax issues, sign-up for a private demonstration during the registration process.
KPMG tax technology tools featured at the Summit
Managing the impact of VAT/GST on cash
It can be difficult to understand the impact of VAT/GST on cash as it flows through a business. Too often VAT/GST is regarded as a “Wash Through” when in reality it is often a company’s third largest cash flow with little resource dedicated to its effective management. KPMG’s VAT Cash Optimization Tool measures the impact of VAT/GST on cash across the business as a whole, across the individual entities and right down to specific supplies and can help develop solutions to release cash by modeling potential changes.
Indirect Tax Data Analytics
The integrity of underlying transactional data is critical when preparing VAT returns and managing indirect tax compliance. At a time when tax authorities are employing third party tools such as IDEA and ACL to conduct VAT audits, it is essential to have confidence over the VAT data. KPMG’s Indirect Tax Practice can offer a variety of services for analyzing the integrity of VAT data using sophisticated interrogation and analytic tools to identify any potential risks and opportunities.
Automating VAT Return Completion
The VAT/GST return completion process can be both manual and time consuming which can lead to an increase in the risk of errors. ONESOURCE Indirect Tax for VAT Compliance and KPMG’s Partial Exemption Cube help businesses manage their VAT/GST return process more effectively by automating data collection and calculations; thereby improving visibility over data in the underlying processes and helping to reduce risk.
Intercompany Pricing Solution (IPS)
Intercompany Pricing Solution (IPS) helps to automate a company’s end-to-end transfer pricing operating model, generate operating efficiencies, improve financial reporting transparency, and minimize inherent transfer pricing risk. For tangible product transactions, IPS automates the calculation of segmented transfer pricing results for each ‘tested party’, monitors transfer pricing results that are trending ‘out of range’, and recommends changes to prospective unit prices – this helps to minimize the need for period-end adjustments and delays in the financial close process. It also automates the calculation and invoicing of intercompany service and royalty charges. A key advantage of IPS, unlike a pre-packed software application, is that it allows for a true custom fit/build for each company during implementation.
TP Cube automates and streamlines inter-company recharge calculation processes. It takes data from your ERP systems (expenses, allocation keys, charging regions) and allows you to apply recharging logic to various costs which have been incurred by regional support centers, head offices etc. The tool then calculates appropriate recharges and cost-plus mark-ups based on the logic you specified and presents the output in various reports. It will then re-apply this logic consistently in subsequent charging periods. TP Cube can model the impact that any changes in transfer pricing methodology could have on recharges globally.
Transfer Pricing Data Manager (TPDM)
TPDM provides an efficient and structured approach to support the preparation and maintenance of transfer pricing documentation in accordance with local and global requirements. Key features of the tool include centralized status monitoring, documentation review and the allocation of access rights to different users, as well as simultaneous access by multiple users worldwide.
KPMG LINK 360
KPMG LINK 360 is a web-based application that enables companies to securely manage and control key tax and other compliance processes. At its core is a sophisticated database that allows you to share information between teams engaged in meeting compliance obligations, wherever they are in the world. With KPMG LINK 360, you can collect documents and data locally about compliance status and other key information such as total tax contribution, material risks and exposures, or profits and losses.
KPMG LINK 360 also supports transfer pricing processes and documentation. The tool provides an efficient platform to access and exchange transfer pricing information across teams around the world – with workflows specifically configured to reflect companies’ individual operating structures, reporting requirements and data needs. Key features include the ability to update, maintain and store intercompany transaction matrices, transfer pricing policies, intercompany agreements and compliance documentation. The application supports cost-effective transfer pricing compliance, as well as broader-reaching risk management and planning.
ETR/Cash Tax Model
The ETR/Cash Tax Model tool simulates transactions (acquisitions, internal reorganizations, refinancing scenarios, etc) and helps optimize a structure for a relevant forecast period, calculating realistic and reliable estimates of the cash tax impact. You can amend the model to handle calculations for any business transaction like acquisitions, internal reorganizations and refinancing scenarios and it can also assist in identifying cash flow shortages, dividend blocks and other related challenges. The tool can also be used to identify tax improvements due to changes in your organization’s supply chain management.
Fund Flow Model
KPMG’s fund flow model tool allows KPMG professionals to quickly set-up a robust fund flow model for an M&A transaction. The tool can also depict the respective transaction steps in the form of journal entries and balance sheets for entities involved in a transaction.
Tax Accruals for internationally mobile employees
KPMG LINK Cost Projector provides detailed and accurate cost projections and calculation on tax and social security contributions for employees working on international projects or assignments. Based on cost projections (either on individual allowance items or whole salary) companies are able to manage tax accruals for their internationally mobile employees on a accurate and timely basis.
Management of international projects
Conducting projects and services abroad requires a sophisticated process of managing and monitoring related topics including but not limited to corporate tax, as well as the employee’s obligation in the areas of tax, immigration and social security. Such a process will incorporate various technology to run efficiently on a global level. While multiple tools are available to focus on individual aspects it is inevitable to combine any technology within a company-suitable workflow in order to ensure an efficient process. A workflow can allow for automated processes, from tasks to e-mail notifications and reminders while connecting included systems and databases for minimal data duplication.
Monitoring the implication of travels for projects abroad
Projects and services abroad include various considerations with regards to immigration, social security, personal and company tax (e.g. permanent establishment). Integrating KPMG LINK Business Traveler in the company’s project management process helps companies proactively manage compliance issues associated with domestic and international cross border travel especially on permanent establishment issues (time length, number of employees associated, etc.).