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Transforming Tax Process: The Costs At Stake Make It A Survival Tactic


By the WeiserMazars Consulting Group

WeiserMazars works with tax executives to transform tax operations across the entire Tax Value Chain. Our focus is to drive our clients towards achieving a Target Operating Model that aligns people, process and technology.

We drive high performance by:

  • Improving effective tax rates and cash flow
  • Eliminating siloed processes
  • Leveraging technology advances
  • Assisting tax executives drive change through structured change management.

We help organizations quickly realize their tax transformation goals by deploying a tailored combination of functional and technical expertise. Here’s what’s possible!

  • Commercial tools exist today to achieve a fully integrated tax environment
  • Over 80% provision automation can be reached with simple out-of-box configuration
  • Data is readily available in a fully auditable fashion
  • Calculation engines and algorithms ensure consistently correct and complete tax accounting information
  • Dashboards to provide a one-stop-shop for all tax information
  • Workflow integrates management of all tax value chain activities while instituting process standardization
  • Maintain integration with spreadsheets as analysis tool – not calculation engine

Case Study – Tax Transformation for a Global Insurance/Reinsurance

Challenges
Resource constrained tax department operating a highly manual, spreadsheet intensive, processes that were jurisdictionally siloed. The department lacked sufficient tools to manage tax value chain creating further process inconsistencies and introduced operational risks.

Solution
Developed a multi-phased / multi-year tax target operating model (TOM) to manage all tax value chain components, starting with the implementation of a provision technology solution. The solution leveraged out-of-the-box tax provision technology processes to consolidate and standardize jurisdictional processes and eliminated manual process risks. The solution also automated complex insurance specific treatments such as double taxation, SSAP101, and Statutory tax accounting. The TOM also provided a roadmap for subsequent transformation initiatives and the method by which to implement them.

Impact
The overall implementation took six months due to adoption of out-of-the-box processes and aligned all resources by operating on a single technology platform. As a result of the solution, the tax department automated 95% of their provision process which significantly reduced data collection and provision preparation time during financial close. The multi-phased approach also aligned provision technology to interface with compliance technologies, introduced a business process management (BPM) solution to manage tax processes centrally, and executive dashboards to serve as a single source of tax data delivery.

Case Study – Custom Tax Provisioning System for a Top 5 Global Reinsurance Company

Challenges
Lack of marketplace solutions forced the tax department to operate under a spreadsheet intensive provision process, across multiple basis of accounting, managed by a resource constrained tax department.

Solution
Developed a custom, multi-user, tax provision software capable of addressing multiple basis of accounting including GAAP, IFRS, and Solvency II. The solution also addressed complex insurance specific treatments such as Irish branches double taxation on a pooling basis. The solution provided consolidated reporting packages with global, regional, and entity level views of provision data.

Impact
Due to the immaturity of tax technologies in the marketplace, the solution positioned the client to be ahead of its competitors in achieving a robust platform that eliminated existing spreadsheets, and implemented a controlled framework for all tax provisioning and reporting activities. This technology also allowed the client to establish a virtual center of excellence to drive its otherwise geographically dispersed tax resources.

 


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