Building the Tax Function of Tomorrow through …...•IBM InfoSphere MDM •SAP Netweaver MDM...

Building the tax function of Tomorrow through automation

Mark Freer, Deloitte Africa

21 August 2019

Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 2

Agenda

• The future of tax

− Digital disruption

− Making tax digital

- A better tax system

- Policy challenges

- The taxpayer and tax worker

• The tax technology landscape

• Emerging technologies

• The future of work

•How to move forward

© 2019. For information contact Deloitte Touche Tohmatsu Limited 3Global Indirect Tax and Global Trade Conference – Africa, Johannesburg

The future of tax


Digital disruption Making tax digital The future of tax


Digital disruption

ETL:

Extr

act-

transfo

rm-l

oad

Crowd-sourcingRobotic Process Automation

Cognitive ComputingDigitisation

Data

Wran

glin

g

Enterprise data management

Hadoop

Data Analytics

Informating

Artificial Intelligence

Robotics

Data

Scie

nce

Autonomics

Data

Min

ing

Fuzzy logic

Pattern matchingMachine Learning

Deep learn

ing

IBM

Wats

on

ERP

Open Source

Conte

nt

scra

pin

g

STEM XBRL

Block chain

Bitcoin

Botn

et

Internet of things

SaaS

(Soft

ware

as a

Serv

ice)

IaaS (Infrastructure as a Service)

PaaS (Platform as a Service)Big

Data


3Tomorrow’s

world2

The digital disruptors

1Today’sworld

Digital disruption


1Today’sworld

Digital disruption

There is a strange dichotomy. On the one hand, we hear of

Exponential growth in speed, performance and capacity

Ever more capable machines

Available anywhere, anytime

On the other hand, this is tempered by our daily experience of:

Poor performance

Fear of security and data privacy

Confusion about what thenew technologies really mean


2The digital disruptors1

Today’sWorld

Five disruptive trends that will define the future of tax

Big data – large volumes of structured and unstructured data accessible and usable at scale

Process automation – robotics getting ever more specialized

Decision making – artificial intelligence, cognitive computing and machine learning

Democratization of knowledge – information widely available online

Open networks – collaborative ecosystems of talent, technology suppliers and revenue authorities

Digital disruption


2The digital disruptors

3Tomorrow’s

world

The characteristics of the digital future for tax

Data driven with a more holistic approachon an enterprise basis

Greater granularity, precision and accuracy

Algorithms will be the way tax work is done: representing expertise, knowledge, and experience

Robots will take the strain

UX – a new, very different online experience

Digital disruption


Tax authorities are making tax digital (MTD)

1990 2000 2005 2010 2015

Electronic data files• E-filing

• SAF-T initiative

• IT14SD

Real-time reporting• Data filed real time

• AP, AR, plus full TB

• Fiscal devices

• E-invoicing

Manual computation• A bespoke computation of tax

• Type written

• Calculators

• Spreadsheets

1980 2018+


A better tax system

The future of tax

FairnessAccuracy and precision Ability to meet

policy objectives


Policy challenges

The future of tax

Should we

tax robots?

Type of tax? How do we tax

digital commerce?


The taxpayer and tax worker

The future of tax

WorkplaceWork Worker


The tax technology landscape


The technology landscape

Master data management

Tax data stores Processing Key outputsSource business systems

Enterprise

Tax dashboard

Workflow, status, documents, analytics

Consolidation Forecasting

ERP

Tax determination

Accounting software

Excel

Other systems

Provisioning

Transfer Pricing

Tax return software

Stat accounts software

Report writers

Singleentity

Consolidated

Tax risk reports

Provisions

Returns, forms e-filings

CbC reporting

TP documentation

Statutory accounts

Work papers

Forecasts


This diagram shows the overall technology landscape for the global business tax record to report cycle.It sets out key product categories and the major products in those categories.

•Corptax•BNA Corporate Tax Analyzer•E/Source Global Tax Planning•SAP/Oracle EPM modules

Forecasting Solutions

•Collaboration software•ONESOURCE Audit Manager•Sharepoint•Excel•Tax Risk and Opportunities Manager (TROM)

Tax Audit and Risk Management

•ONESOURCE Operational TP•Oracle •Corptax TP Architect•PebbleAge Hyperion TP•Oracle Hyperion Operational TP•SAP PCM

Transfer Pricing

•Deloitte Digital Dox•ONESOURCE Documenter•CCH Global TP library•Benchmarking

TP Documentation

•CaseWare Accounts•CCH Accounts Production•IRIS Accounts Production•ONESOURCE Statutory Reporting•Sage Accounts Production

Accounts Production

•ONESOUCE Corporate Tax•Corptax•Alphatax•Datev•CCH Tax Integrator

Direct Tax Return

•ONESOURCE Indirect Tax•Vertex VAT Returns•iVAT•Sales and Use products (US)•Deloitte VAT Smart / VAT Wizard•Sovos

Indirect Tax Return

•Oracle Hyperion Tax Provision•ONESOURCE Tax Provision•Longview Tax Provision•Corptax Provision•Vertex Tax Accounting•CCH Global Integrator•Excel

Global Provision

•IBM InfoSphere MDM•SAP Netweaver MDM•Oracle MDM•Microsoft SQL Server•Winshuttle

Master Data Management

•CCH•Check Point•IBFD•EMC Documentum

Knowledge Resources

•SAP Disclosure Management•Oracle modules•QlikView•Tableau

Collaboration and Project Management

•SAP and Oracle EPM•IDEA•Anaplan•Automation Anywhere

Reporting and Analytics Results

•Sharepoint•Open Text•HP Content Manager•CaseWare

Document Management and Storage

•ONESOURCE Workflow Manager•IBM Business Process Manager•K-2 Blackpearl•CCH Global Integrator

Workflow and Status Reporting

Tax dashboard

Indirect Tax Determination

Tax Data Stores

Source Business Systems

Master data management

Tax Data Stores Processing Key OutputsSource Business Systems

Enterprise

Tax dashboard

Workflow, status, documents, analytics

Consolidation Forecasting

ERP

Tax Determination

Accounting software

Excel

Other Systems

Provisioning

Transfer Pricing

Tax return software

Stat account software

Report writers

Singleentity

Consolidated

Tax risk reports

Provisions

Returns, Forms e-filings

CbC Reporting

TP documentation

Statutory accounts

Work papers

Forecasts

ERP Systems•SAP HANA•Oracle, incl. JDE & PeopleSoft•Microsoft Dynamics NAV•Digita•Sage

Consolidation, Business Intelligence and Enterprise Performance Management•Oracle EPM•Oracle HFM•SAP EPM•IBM Cognos•Longview CPM

Entity-Level•Multiple products

Consolidated•Deloitte VAT Smart•Microsoft Navision•CCH Global Integrator•Deloitte Conversion Tool (DCT)

Enterprise-Level•Vertex Enterprise

•ONESOURCE Indirect Tax Determination•Vertex Indirect Tax Solutions•Taxware•FuelQuest

•Native ERP•Avalara•Add-ins/ons/boutique solutions


Emerging technologies


Progression of finance technologies

20151970 2000

Focus on data capture and storage Data analytics Data as asset

Bu

sin

ess p

artn

er v

alu

e

Data capture

Performancetracking

Profitabilityanalysis

DesktopcomputingMain-

frames

Mobiledevices

Manual

Insight

Hindsight

Foresight Cloud

In-memory computing

Visualization

Process robotics

Advancedanalytics

Cognitivecomputing

Blockchain

ERP

EPM

Digital

2020

We asked ourselves a simple question:In the year 2025, after new technologies

have matured and combined, what will the finance and tax function look like?

Source: (1) The Future of Operational Finance (https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/Finance%20Transformation/Deloitte_The_Future_of_Finance.pdf);(2) Crunch Time Finance in a Digital World (https://www2.deloitte.com/content/dam/Deloitte/us/Documents/finance-transformation/us-ft-crunch-time-finance-in-a-digital-world.pdf); (3) Deloitte Analysis


The future of work


This is what a factory looks like today


…and this is how a typical office looks


What will finance and tax look like a few years from now?


Three dimensions defining the future of work

Current work options

Future work options

1 3

2

What?

“Work”

Automation level

Where?

“Workplace”

Physical proximity

Who?

“Workforce”

Talent category


The augmented workforce

Source: Deloitte, 2017

Employees

Joint ventures

Contractors

Freelancers

Crowds

Robots

TRANSFORMDISRUPTED

G r e a t e r n u m b e r o f t a l e n t o p t i o n s


How to move forward


How to move forward

Prioritize

Get involved to understand the new technologies – read, watch YouTube

videos, do e-learning courses

Immerse yourself in digital

Start with automating one process and prove it works and provides benefit. If it fails, try again (Experiment -> Fail Fast -> Repeat). Then apply to more

processes

Prove it works (Quickly)

Collaborate with your digital officer, finance, IT, external service

providers

Build your digital ecosystem

Embrace digital

Map out your current landscape and set a plan of what you would like to achieve over a period, broken down

into projects and timelines supported by the required business cases

Technology landscape

Set a plan Start small

Review current processes to identify what could be automated quickly (MVC – Minimum Viable Changes

required to embed change)

Identify what to automate

Identify which smaller successful automation projects can be scaled

Scale

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms.

This communication is for internal distribution and use only among personnel of Deloitte Touche Tohmatsu Limited, its member firms, and their related entities (collectively, the “Deloitte network”). None of the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

© 2019. For information, contact Deloitte Touche Tohmatsu Limited.

Building the Tax Function of Tomorrow through …...•IBM InfoSphere MDM •SAP Netweaver MDM...

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