Tax department analysis Are your tax operations adding value to the business?

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Tax department analysis | Are your tax operations adding value to the business?

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Tax department analysis | Are your tax operations adding value to the business?

Today’s challengesIn today’s environment, corporate leaders expect their tax departments to bring more value to the business — from an operational and a strategic perspective. Yet growing regulations to address globally amid declining resources makes it challenging for tax departments to meet those expectations.

Increasing headcount to address increasing demands is no longer an option. And while new technologies emerge to help tax departments address added strain, it can be difficult to analyze which technology platform might be appropriate for your organization. Deloitte can help.

Deloitte can help you take a fresh look at your tax department operations and explore opportunities for improvement.

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Tax department analysis | Are your tax operations adding value to the business?

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Tax organization and resourcesHelping you lay the groundwork for a tax organizational structure that improves scalability and sustainability and captures institutional knowledge to facilitate succession planning. Assisting with alternate talent sourcing models.

Tax technology and systems Helping you explore the range of tax-specific considerations with regard to tax technology and systems.

Tax process improvementHelping you explore opportunities to refine, reduce, and potentially eliminate redundant processes and drive improved performance.

Tax risk managementHelping your organization develop a methodical approach to identify, manage, monitor, and mitigate tax risks.

Tax planning and operationsHelping you unlock value within the organization and align your tax operations with the overall corporate vision.

Tax data and information managementAssisting with the design and implementation of tax-specific ERP applications and the implementation of tax data storage, tax dashboards, and analytical tools.

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Tax department benchmarking and leading practicesUsing available public and Deloitte proprietary metrics to compare and analyze your department with leading practices for companies of similar size and complexity.

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Tax department analysis | Are your tax operations adding value to the business?

Practical recommendations based on experienceOur Tax Management Consulting (TMC) group can help you take a fresh look at your tax department operations and explore opportunities for improvement. Our Tax Department Analysis is designed to help companies analyze their tax function, starting from data sources, data collection, and data analysis, to end-result reporting. We will evaluate your internal tax processes against practices that we have found to be effective to determine areas where we believe you can gain efficiencies. We will also provide feedback on the overall tax function, including information regarding your responsibilities, a road map highlighting specific challenges you face in the short- and long-term, and a summary of leading practices we believe your department currently deploys. Our recommendations for improvement will focus on high-impact considerations.

Our services also help companies examine the people, process, data, and technology aspects of their tax operations and identify ways to improve them. Drawing from our extensive experience consulting with corporate tax departments on operational matters, we can help you explore avenues for improvement in the following areas:

DEPARTURESGATE DESTINATION01 Tax data and information management02 Tax department benchmarking and leading practices03 Tax risk management04 Tax process improvement05 Tax organization and resources06 Tax planning and operations07 Tax technology and systems

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Tax department analysis | Are your tax operations adding value to the business?Tax department analysis | Are your tax operations adding value to the business?

Demonstrated methodologyOur Tax Department Analysis methodology is a scalable process that can be tailored by tax type, tax process, geography, project focus, etc. to address your objectives and comprises six steps:

Summary of findingsWe will prepare a summary of findings and review our final conclusions with Tax Leadership. This summary includes:

Workplan developmentWe will work with you to determine areas of the tax function to review and analysis participants from our organization and ours. We will tailor our methodology, tools, and templates to help you pursue your objectives.

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Information/data requestsWe will provide a specific information/data request that we would review in advance of any onsite meetings to further our understanding your tax department.2

Online survey/workshops/interviewsWe will use web surveys, workshops in the form of working sessions, and interviews to document and review your tax department workload, volume, complexity, and processes.

3Data reviewWe will review the information provided in light of the results of the workshops/ interviews and look for gaps and areas for improvement.4

Preliminary results and recommendationsWe will review with you our preliminary conclusions for validation.

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Recommendations for areas needing improvement and alternative resource models.

The potential benefits and value of proposed recommendations and an estimate of resources required to implement them.An executive summary

of the current state of tax operations and improvement opportunities.

Tax department analysis | Are your tax operations adding value to the business?

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Tax transformation — The expanding role of TaxDeloitte’s interviews with C-Suite executives and Board members indicate the pressure is on tax executives to deliver more results from fewer resources. In addition to optimizing the tax function, tax executives are expected to improve strategic partnering across the business in order to add value and improve risk management. Many Tax Executives will struggle to meet these new expectations unless they transform how they do business. A critical enabler of the transformation is better use of process and technology in order to leverage people and data.

Sustainability & Efficiency — Constantly work to drive down the cost of the client's global tax function

People — Tax profes-sionals are viewed as overpriced and under-deployed; Tax has inadequate succession planning compared with the rest of the finance organization

Leading Strategic Initiatives — Lead projects across functions that align with the company’s vision, while maintaining line of sight throughout the organization

Process, Technology and Data — Tax has insufficient knowledge of how to leverage process and technology to access data for efficiency and effectiveness

Clear Communication — Articulation of tax planning and the value of tax concepts to a non-tax audience is a key skill for the Tax organization

Business Partnering — Build relationships across the organization to understand and gain alignment with the overall business strategy

Emerging Additional Expectations

Derived from Deloitte stakeholder interviews, including over 50 CFOs, in preparation for Deloitte Tax Executive Transition Labs™.

The Company’s Tax and Finance Profile

Optimizing the tax

function

Strategic partnering across the

organization

PlanningReduce global

tax burden and enhance cash

flow

ManagingWithin an

appropriaterisk framework

ReportingComply with

reporting obligations

Tax department analysis | Are your tax operations adding value to the business?

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Helping you unlock tax valueOur national TMC team brings together highly experienced talent and resources from relevant areas and assembles them into engagement teams to address your requirements. We marshal our TMC professionals under a single point of contact for your convenience and apply them effectively. We can assist your organization on discrete projects, assist you in multiple areas, or even work with you on a cosourcing basis to help your tax function, both domestic and global, be a high-value contributor to your enterprise—the hallmark of the tax department of the future.

The depth and breadth of Deloitte — Our depth and breadth allows us to leverage the IT and consulting knowledge and experience of our Deloitte Consulting practice, and our offshore practice in India helps us add efficiencies.

A holistic approach — Our approach to help you lay the groundwork for tax considers the tax lifecycle, from record to report, to help align tax with the corporate vision and maintain a structure that is scalable to address business changes.

Leading the way in vendor alliances — Working with vendors provides additional opportunities to refine processes and documentation and limit redundancies with focused collaboration between Deloitte and software vendors.

Combining tax technical and technology to help you create value — Our professionals have deep tax technical and technology experience. Combining the two enables our teams to advise on leading practices to help tax add greater value to the organization.

Flexible, scalable services, focused on your objectivesWe realize your business issues are unique, and that “out of the box” solutions won’t always work. We tailor each project as needed to hone in on our clients’ business objectives to provide sustainable value.

Our objective is to help you pursue a streamlined,

transparent, and efficient tax function

— one that can handle compliance and

planning issues while expanding its strategic support to the broader

business enterprise.

For more resources that can help address the challenges tax departments face today, visit: www.deloitte.com/us/movetaxforward.

This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this publication, rendering business, financial, investment, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication.

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