building the tax function of tomorrow through …...•ibm infosphere mdm •sap netweaver mdm...
TRANSCRIPT
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
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 4
Digital disruption Making tax digital The future of tax
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 5
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
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 6
3Tomorrow’s
world2
The digital disruptors
1Today’sworld
Digital disruption
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 7
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
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 8
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
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 9
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
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 10
Digital disruption Making tax digital The future of tax
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 11
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+
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 12
Digital disruption Making tax digital The future of tax
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 13
A better tax system
The future of tax
FairnessAccuracy and precision Ability to meet
policy objectives
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 14
Policy challenges
The future of tax
Should we
tax robots?
Type of tax? How do we tax
digital commerce?
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 15
The taxpayer and tax worker
The future of tax
WorkplaceWork Worker
© 2019. For information contact Deloitte Touche Tohmatsu Limited 16Global Indirect Tax and Global Trade Conference – Africa, Johannesburg
The tax technology landscape
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 17
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
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 18
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
© 2019. For information contact Deloitte Touche Tohmatsu Limited 19Global Indirect Tax and Global Trade Conference – Africa, Johannesburg
Emerging technologies
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 20
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
© 2019. For information contact Deloitte Touche Tohmatsu Limited 21Global Indirect Tax and Global Trade Conference – Africa, Johannesburg
The future of work
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 22
This is what a factory looks like today
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 23
…and this is how a typical office looks
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 24
What will finance and tax look like a few years from now?
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 25
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
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 26
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
© 2019. For information contact Deloitte Touche Tohmatsu Limited 27Global Indirect Tax and Global Trade Conference – Africa, Johannesburg
How to move forward
Global Indirect Tax and Global Trade Conference – Africa, Johannesburg© 2019. For information contact Deloitte Touche Tohmatsu Limited 28
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.