In Indirect Tax Strategic Plan on 26/03/2017 at 10:03 pm
Tax moral is shifting. More often what is (still) legally allowed may not automatically be accepted by the public opinion. Reputational damage is imminent.
Both on direct and indirect taxation the tax authorities have set their priorities. The tax authorities not only want to receive more tax data, but also faster and more often. In addition, there is a tendency to allocate the ultimate tax responsibility at the highest level in a company. Since last year in the United Kingdom the Board of Directors has to sign off the company’s tax strategy and also publish the strategy externally.
Tax departments and the external auditors face due to these 2 tendencies new obligations. These tendencies could however also support change.
The new data requirements of the tax authorities have to be properly assessed and interpreted from a tax risk management perspective to see whether the data requested contain any uneforeseen and major tax risks. The outcome of such an exercise could also make clear that the company has to reorganize its business and tax processes.
When all tax disciplines (e.g. TP, indirect tax; etc.) work together a joint responsibility for the overall tax affairs of a company could be established. That might facilitate the buy-in for tax investments.
When successful tax can take the place it deserves: an important part of a company’s business strategy.
The above will be further explained in detail the coming weeks:
- The external accountant not yet a tax risk analist
- New tax legislation in the UK: ‘Tone at the top’
- More attention on Transfer Pricing
- … And on VAT
- Tax authorities request more, faster and more often tax data
- SAF-T rolled out in more countries
- The impact on in-house tax function
- Preaudit before submit
- Realise a joint tax responsibility
Above is a translation of article published in Vakblad Tax Assurance. Dutch version can be downloaded for free: Download click the link
In Indirect Tax Strategic Plan on 16/03/2017 at 2:26 pm
Door Richard H. Cornelisse en Edwin van Loon
Gepubliceerd in Vakblad Tax Assurance
Gratis artikel lezen en downloaden
Geschreven door Richard H. Cornelisse en Edwin van Loon
- mr. Richard H. Cornelisse, Tax Assurance Expert, managing director van de Key Group en Phenix Consulting
- Edwin van Loon RTAP, Tax Control Framework Coordinator ING Bank NV
In Indirect Tax Strategic Plan on 26/02/2017 at 8:43 pm
We offer a new SAP add-on solution that creates automatically the VAT Smartform from SAP. When our SAF-T SAP add-on solution has been purchased this additional functionality will be managed under SAF-T cockpit as a different report.
Companies selling across European Union borders have to submit EC Sales List (ESL). This should contain the details of sales or transfers of goods and services to other VAT registered companies in other EU countries summarized per VAT registration number. The tax authorities in the EU use the listings to check whether VAT is declared by the parties involved in cross-border transactions (e.g. no mismatches).
In Poland a specific extra local requirement applies. As of 1 January 2017 taxpayers making transactions with EU members will be required to submit mandatory the declaration in electronic format.
The Polish tax authorities provides a VAT Smartform PDF that a company has to fill in with the requested information. That Smartform is mandatory and must be used to meet the requirement. Without automation support the data has to be entered manually by the company.
Entering data is a time consuming process. Besides the impact on internal resources, such manual activity increases the risk of data errors, i.e. with entering the VAT registration numbers in the Smartform.
Stricter penalties apply for individuals involved in tax fraud and penalties are introduced for taxpayers who do meet the legal requirement of submitting declarations in electronic format.
Source: SAP – submitting close to real time data to tax authorities