Richard Cornelisse

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Firms giving advice on aggressive tax avoidance could face large fines

In Indirect Tax Strategic Plan on 18/08/2016 at 3:10 pm

uk

Accountants, lawyers and consultants whose multibillion pound industry provides advice on how to aggressively avoid tax could face large financial penalties under government proposals.

Plans set out in a consultation document released on Wednesday will suggest that tax advisers whose schemes are defeated in the courts might pay a fine of up to 100% of the money lost to the taxpayer.

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Norway might introduce SAF-T shortly

In Indirect Tax Strategic Plan, Processes and Controls, SAF-T Poland, SAFT on 10/08/2016 at 7:16 am

tables

Norway has now also proposed to introduce SAF-T reporting for VAT registered businesses with a go-live date of 1 January 2017.

Tax authorities, due to technological innovations, have become increasingly better in executing their tax audit. The probability that the Tax Authorities will issue additional assessments and penalties in the near future because errors in indirect tax are detected, increases by the day. The SAF-T standard, originally created by the OECD, is intended to give tax authorities easy access to the relevant data in an easily readable format. This leads to much more efficient and effective tax inspections.

  1. Mandatory e-filing
  2. Benchmark: SAP and SAF-T PL
  3. Innovation and tax authorities

The Indian Parliament passes GST Constitution Amendment Bill

In Indirect Tax Strategic Plan on 08/08/2016 at 3:55 pm

India

The Indian Parliament has voted unanimously to introduce the Goods and Services Tax (GST). This is a significant development which will affect all businesses with interests in India or who trade with India.

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It is now time to take the necessary preparations as the go live date is ambitious. The article in the next hyperlink includes also a roadmap and points of attention in PowerPoint that might be useful: ‘Introducing a new VAT system‘.

Monthly SAF-T VAT PL – deadline 25 August 2016!

In Indirect Tax Strategic Plan, SAF-T Poland, SAFT, SAP for VAT on 07/08/2016 at 11:17 am

According to new regulation Large Enterprises are obliged to submit mandatory VAT SAF-T file in legal XML format for the first time on 25 August 2016. It is a monthly obligation.

SAP and VAT SAF-T PL

Most companies download the standard SAP VAT return reports from SAP to Excel and have an Excel working paper for review and adjustments. The data in the SAP reports are retrieved from various SAP tables. The SAF-T VAT file need to reconcile with the submitted VAT return (monthly or quarterly).

If this file does not reconcile to the submitted VAT return the risk that the PL tax authorities will ask questions – explain the differences – is high.

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Publishing your tax strategy

In Indirect Tax Strategic Plan on 06/08/2016 at 12:25 pm

Certain businesses have to publish their tax strategy and be able to demonstrate how the tax strategy is being applied in practice. The strategy should set out the business’ attitude to tax risk, its appetite for tax planning and its approach to its relationship with HMRC. Although it applies to the UK, being consistent across jurisdictions is important as these obligations might be a global tax trend.

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February | 2012 | Tax Assurance Research

In Indirect Tax Strategic Plan on 04/08/2016 at 6:23 pm

standing

The root cause that indirect tax has a low priority, is most likely a company’s culture, its organizational structure, its overall business processes and maybe a wrong perception of top management.

This follows from this ‘top down’ overview:

  • Executive considering indirect tax not material and a high priority. The low risks evaluation of indirect tax likely results in budget constraints
  • Lack of specific VAT/GST measurable performance goals visible to the CFO
  • Lack of proper prioritization between lower value activities and higher value activities. Indirect Tax function has many competing priorities and insufficient time or resources
  • Historically, the tax function in general focused on other areas, allowing other departments and local offices a free hand to deal with the company’s indirect taxes
  • Finance and Accounting is in the majority considered accountable for Indirect Tax
  • It seems that the indirect tax department is often the last to know what is going on, is forced to be the show stopper when other parts of the business thought they were are ready to ‘go live’

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What do we like to achieve

In Indirect Tax Strategic Plan on 04/08/2016 at 4:48 pm

  • Focus on tax processes that could be improved
    • Manual process: same data requests are made by different stakeholders
  • As Is assessment
    • Anticipate future changes and the data needed
    • What are tax trends?
    • What is happening locally and what should be considered across jurisdictions where you operate?
  • Anticipate new stakeholders and their data needs or requests (internal and external)
  • Define scope and actions for short, mid and long term
  • Write business case for change
  • Realize sponsorship for implementation

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Best in class data analysis for VAT

In Indirect Tax Strategic Plan on 04/08/2016 at 4:41 pm

Tax Authorities, due to technological innovations, have become increasingly better in executing their tax audit. The probability that the Tax Authorities will issue additional assessments and penalties in the near future because errors in indirect tax are detected, increases by the day. What is needed for best in class data analysis for VAT?

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e-Learning modules on VAT

In Indirect Tax Strategic Plan on 02/08/2016 at 7:01 pm

VAT eLearning programme developed by the European Commission consists of 12 individual courses.

The eLearning modules on value added tax (VAT) aim at presenting the fundamental elements of the VAT Directive.The modules have an EU-wide perspective and do not explain national variations or derogations. Having completed all individual eLearning modules on VAT the learner should have a good understanding of the key principles of the EU VAT directive, to be incorporated into national legislation.

The twelve eLearning modules on VAT are now available in 15 languages.

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Transfer pricing and IT needs

In Indirect Tax Strategic Plan on 01/08/2016 at 8:57 am

From a tax controversy perspective TP documentation is important and often results in conflicting priorities within the tax function (allocation of budget and tax resources).

Better resource allocation and process improvement can be achieved via (semi)automated documentations, configure ERP systems to support TP needs or implement add-on or bolt-on tools. For example, in the area of data extraction and workflow management, entity charting, document storage, real time reporting, scenario planning and data interrogation.

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