By Marc Seewald, Senior Director, Product Management, Oracle EPM Cloud
Governments globally are looking at increasing tax revenues, especially from multinational companies that earn significant revenues in country, but pay small amounts of local corporate tax. This is leading to more intrusive reporting requirements like country by country reporting (CbCR); however, this is not the only change that you can expect. Globalization continues to drive more scrutiny of corporate taxation.
A recent survey from Price Waterhouse Cooper (PwC) and MAPI, Utilizing Technology to Expand Tax Capabilities, highlights that a majority of companies felt that better use of technology and data would significantly improve the effectiveness of their tax function. At the same time, 74% do not have a tax technology strategy in place. This is probably due to the fact that most corporate tax practitioners do not have a deep understanding of their own enterprise technology roadmap. Many feel that they cannot enact change within the enterprise and that they will just have to simply “live with the pain.”
Thankfully, help is on the horizon. Technology evolution and adoption is a process that never stops. Many companies are now moving their financial systems to new cloud-based technologies and, more importantly, most enterprises moving finance systems to the cloud are taking the opportunity to undergo finance transformations at the same time. This shift is creating a once-in-a-generation opportunity for the tax function to fundamentally fix the data and process challenges that exist in the tax department.
The tax function stands to reap significant benefits; however, proactive tax teams need to get ahead of this wave. If tax does not have a seat at the table during finance transformations, it may be a long time before an opportunity of this magnitude comes along again.
The big financial system vendors, like Oracle, are releasing next-generation solutions that wholly integrate tax and financial systems and processes. The corporate tax community needs to understand what is now possible and expect to prepare for changes to the following tax processes:
Historically, tax departments have under-invested in software, relying instead on painful spreadsheets and manual processes to do their calculations and build reports. But, as regulations and technology advance, proactive tax functions can finally feel relief.
On March 13, 2017, 2:00 p.m. ET, join PwC leaders and Oracle senior product development managers for a live, interactive and informative hour. We'll explore the latest on leading practices in aligning your financial systems and Oracle Tax Reporting Cloud. PwC will award 1 CPE credit for completing this webcast. In order to complete the webcast, you must answer 3 of the 4 polling questions asked during the webcast.