Tax Reimagined

The future of tax is here. A technology enabled approach to developing a future state target operating model.

The future of tax is here.

Today’s unprecedented economic challenges have forced companies to rethink the way they do business. For many, this includes taking a closer look at how they manage their compliance obligations on a worldwide basis. Managing tax and statutory compliance in today’s highly complex economic and regulatory environment is no easy task. Rapid globalization, new developments in tax laws, changes in accounting standards and increased demands from tax authorities are all increasing the burden on tax and finance departments. In addition, the recent global pandemic has taught us all the importance of remote working and building a team that can adapt to strenuous circumstances. All the while tax functions are challenged with providing more and better reporting and compliance, in less time.

Across the KPMG organization, we are investing US$5 billion over five years in technology, people and innovation to help accelerate the digital transformation of KPMG firms and our clients, with more than US$1billion being invested in tax & legal technology specifically through that period. Through this investment we have combined our technology, transformation and compliance capabilities under a new framework — Tax Reimagined. A technology-enabled holistic approach, to help organizations develop and implement a customized target operating model for their tax and finance functions to enable them to reduce costs, mitigate risks, improve quality and drive more strategic value across their organization.

The end state is a holistic solution, frequently enabled by KPMG managed services offering, designed to integrate compliance processes (e.g. statutory accounting, tax reporting, direct/indirect tax compliance, transfer pricing) and/or a tax transformation effort which standardizes and optimizes tax processes by leveraging KPMG’s Lean 6 Sigma methodology for Tax and KPMG’s Digital Gateway technology. Typically such an end state can start from any end of the spectrum depending on the company’s priorities and resources.

How Tax Reimagined can help your organization

CFO’s and CTO’s want structural solutions to constant compliance hurdles, including, complex filing calendars, changing regulations and transparency standards, legacy technology, and talent gaps.

Tax professionals are regularly confronted with questions such as… What should I do in-house? When should I use a service provider? Where should the work be done?

Discover more effective ways to fulfill baseline compliance obligations, increase accuracy, and provide more stringent adherence to increasing regulations.

Tax leaders want access to the game-changing benefits of machine learning, scenario modeling, and A.I. technologies.

Unleash new operational efficiencies by leveraging our investment in emerging technology to build a technology-driven tax function without making investments to these new tools and solutions..

Tax functions are increasingly looking to transform their target operating model to reduce costs, mitigate operational risk, provide scale and contribute overall value to their organization.

The journey often begins with an understanding of the company’s current state, their ideal future state and identifying the gaps. With no two companies alike, one size does not fit all.

Achieving an ideal target operating model involves structuring and implementing solutions so you can outsource, co-source, or deploy in-house resources more effectively and sustainably.

And at the other extreme, there are people who are underwhelmed at the technology, seemingly disappointed that their tools may not be as simple as a Google search..

Tax organizations need data strategies that bring consistency across data reporting to identify opportunities that can help reduce risk, free up cash or working capital, and generate meaningful analyses for tax planning.

Predictive modeling data can help with scenario planning for potential legislative or regulatory tax changes.

Industry and revenue sized peer tax benchmarking data can provide tax leaders with a competitive insight perspective to make smarter, more informed decisions, and help take a holistic view of tax operations to codify leading practices.

Our approach to your tax transformation journey:

Our solution architects collaborate with you to bring tax expertise, a deep understanding of technology and innovative operating model designs to help you reimagine your tax function. KPMG professionals can work with you, listening to your pain points and goals, to create a solution that works for you today and into the future.

This journey often starts with a discovery workshop where KPMG solution architects can work with you to better understand your current state, conduct rapid diagnostics, benchmark your data, share our observations and next steps as we help you reimagine your target operating model of tomorrow.

Observation

Discover opportunity
Strategize, plan, and create a roadmap for improved operations
Develop business case for action

Transformation

Challenge the status quo
Streamline processes, increase efficiency, reduce costs, improve risk management.
Develop actionable plans for execution to help ensure success.

Implementation

Partnering for the long haul
Outsource, co-source, or deploy in-house resources more effectively and sustainably
Measure success to tell your story

How organizations can benefit:

Leveraging this framework KPMG Tax professionals can help you in many ways including but not limited to:

Gain a deeper understanding of technology and innovative operating model designs
Design a target operating model that combines transformation with the right blend of managed services and technology
Review the strategy of the tax function to confirm it aligns with the overall business strategy
Reduce the cost of compliance and/or deploy resources to more value added activities
Streamline oversight of tax reporting across all countries and territories
Improve KPI reporting and the ability to refocus resources on value-adding activities
Higher-quality tax data that provides insights into the business
Future ready for the digitalization of tax collection
Bring leading tax expertise.

A KPMG Tax Reimagined discovery workshop can give you the opportunity to review and articulate your strategy and align your sourcing model, operations and performance indicators to that strategy, enabling you to reimagine you target operating model of the future, today.