Richard Cornelisse

Taxmarc™: gain real hindsight, insight and foresight 

In Audit Defense, Benchmark, Business Strategy, Indirect Tax Automation, Indirect Tax Strategic Plan, Processes and Controls, SAP add on, SAP add on for VAT, SAP for VAT, System Landscape Optimization, VAT automation on 25/07/2014 at 1:52 pm

In Taxmarc™ Tax Engine all VAT relevant transactional data of legal entities operating on the same SAP platform could immediately be made visible and accessible, as this information is stored separately in one table in SAP. That means real-time insight – without facing run-time issues – into the company’s blue print without the need of performing a manual transaction mapping exercise first.

A clear understanding of key risk factors in real numbers is possible as detailed and relevant data used for your organization are available. There is no need for “informed guessing” anymore. Auto-generated reports based on the relevant data will be available in any format. Examples include specific reports for cross-border transactions, intercompany, per transaction type, per tax reporting country, per dispatch country, per SalesOrganisation/Division.

The Taxmarc™ set-up is flexible and can be tailored to the tax’s or other departments’ specific needs and wishes including the amount of transactional detail that needs to be reported.

Detective control for indirect tax and beyond

Taxmarc™ Data Analytics provides a ‘Continuous Controls Monitoring’ tool that could also be used by stakeholders beyond indirect tax. The method of ‘guessing the numbers’ is something of the past. It enables that company’s resources and external advisors to focus on what really matters because they do not need to spend time on further reducing risks because they will already be at an acceptable level.

Without incurring additional costs, the company is more in control and can act proactively as transactions can be reviewed and quantified in real-time.

Impact analysis and forecasting

This enables foreseeing future risks long before they manifest themselves:

    • By linking your business strategy to advance analytical possibilities, decision-making capabilities can be improved. A business change can be simulated via ‘what if’ with real-time data and its impact can be quantified.
    • Beyond indirect tax this should improve processes for management of e.g. transfer pricing, for logistics and warehouse locations management, cash flow planning, etc.
      Many stakeholders can benefit from this functionality; it is accessible real-time and it should improve both internal and external effective communication because you can ‘talk numbers’.
    • It will contribute to buy-in from other departments and ease the writing of problem statements. In addition, it will support business cases with the aim to realize sponsorship for change and better management of the Executives own KPIs as real numbers have actually been used.

  1. Data is the starting point and the end deliverable of every tax task. If companies do not seize the challenge to manage their tax data effectively, tax and customs administrations will. Tax administrations are becoming smarter, faster and more efficient at using data analytic tools to obtain, analyze and assess underpaid tax and duty amounts. In-depth reviews that once took from three months to two years to complete can now be done on a data-driven basis in a matter of weeks.

    Dealing with indirect tax data is the key to effective indirect tax management. But the variety of indirect tax data required by different jurisdictions and the sheer quantity of relevant data generated by large organizations can present a range of logistical issues.

    Having accurate global indirect tax data — and examining it critically — has never been more important. What is driving this trend? How can companies use technology to gain more visibility of their indirect tax position? How can they manage indirect taxes and associated costs more effectively? And why is this issue “front of mind” for today’s global companies?


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