how gsk group tax drove department process/data ... · kpmg’s global compliance &...
TRANSCRIPT
GSK and KPMG – How GSK Group tax drove
department process/data efficiencies by embedding
leading practices, utilising OWM and DataFlow
Speakers
2
Amar Thakrar
Head of Tax Technology,
Compliance & Operations
GSK PLC
Joe Habak
Managing Director,
Tax Transformation
KPMG LLP (US)
Patricia Pinto Rocha
Manager
Compliance & Transformation
KPMG LLP (UK)
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Objective of Presentation
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Discussion on enhanced tax department processes. Find out how
KPMG’s Global Compliance & Transformation team (GCT)
worked with GSK to design and implement a holistic tax data
management and process improvement solution for their global
tax compliance processes, using OWM and DataFlow.
• Drive performance in a managed global service
outsourcing contract.
• Create stakeholder confidence in compliance processes.
• Create increases in efficiencies and effectiveness through a
more robust and central/standardised platform.
• Increase controls and reduce risk.
Agenda
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The GSK Compliance Management Journey
KPMG – Holistic Tax Transformation using
OWM/DataFlow
Details of OWM/DataFlow Project with GSK
Future State – Benefits of OWM/DataFlow Project
The GSK Compliance Management Journey
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We are a science-led global healthcare company
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99,500
employees
Over 400
entities
Customers
in 190
countries
Our goal is to be one of the world’s
most innovative best performing and
trusted healthcare companies.
Group
£30.2bn+8% AER,
+3% CER
Pharma
£17.3bn+7% AER,
+3% CER
Consumer
£7.8bn+8% AER,
+2% CER
Vaccines
£5.2bn+12% AER,
+6% CER
Where & how did we start?
© 2018 Thomson Reuters/Tax & Accounting7
TP DocCIT
Returns
GSK
Transfer
Pricing
Processes
All other
local filings
Tax Audit
Support
CIT Data &
TP Doc
Gathering
Statutory
Accounts
Indirect Tax
Returns
Global compliance was partially done in-house and partially by KPMG.
OWM rules-based workflows were being used by GSK in order to track the global compliance
obligations (including due dates), in combination with a KPMG tool.
• Risk Questionnaire being managed by KPMG tool.
Documents were being shared by email between GSK and KPMG.
• Internally, documents were also stored on multiple share drives across the globe, causing issues
with access and non-standardized usage/management.
Limited KPI management was being performed through Excel spreadsheets.
• Lack of transparency into global compliance status.
GSK: Prior State
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Quarterly Risk Reporting
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Global Tax
Risk
Management
Audit & Risk
Committee
Judgement
Report
New engagement in 2017, for KPMG to take on GSK’s global direct tax compliance preparation in a
managed services environment.
• Also, KPMG to take on all statutory compliance across 20 jurisdictions.
This presented a need for a central and standardised platform through which GSK and KPMG could
track global compliance/statutory obligations and their statuses, in one single place (accessible by
both parties).
• GSK needed a tool in which they could ensure global obligations were submitted on time, etc.,
allowing for GSK to track agreed KPIs.
Collected information and documentation needed to be captured in a centralised database.
Collecting and then consolidating the data from the risk questionnaire was a highly manual process
and lack of ability to perform analysis and review on the data.
GSK: Business Driver/Challenge for an Improved Technology Solution
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KPMG: Holistic Tax Transformation using OWM
and DataFlow
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KPMG: Holistic OWM/Dataflow View
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• KPMG’s holistic approach to OWM/DataFlow design
connects all tax data sources, processes, and people
into a globally aligned, centralized, standardized, and
integrated platform.
• KPMG will design OWM/DataFlow to satisfy our clients’
big picture compliance and reporting solution and then
implement it in a manageable and scalable/phased
manner, helping ensure that all the pieces will fit cohesively
and deliver value both now and in the future.
OWM/DF
platform
WorkFlow
FileRoom
Calendar
Entity Mgmt
Reporting
Tracking
Integration to
downstream
Tax SystemsReview
and
Analysis
Standardized
Data
Collection
Third-Party
Providers
Protective
Stakeholders
Source: KPMG LLP
Some or all of the services described herein are not permissible for KPMG audit clients and their affiliates or related entities.
OWM – A Tax Process and Data Management Solution
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• Automated workflow
system
• Standardized electronic
binder
• Management and
monitoring of core tax
projects/work
• Due date tracking
• Global content
• Notifications and
reminders
• Reporting
• Organizing and managing
various tax documents
• Advanced search
capabilities
• Access control and
version management for
each document
• Secure data collection
using familiar user
interface (Excel)
• Standardization of
workpapers
• Integration with reporting
and compliance tools
• Centralized database of
entity information
• Global solution
• Capture detailed
information
• Control
• Chart function
Entity Manager CalendarWorkFlowFileRoomDataFlow
Configurable Web-based platform (hosted by Thomson Reuters), with fully integrated modules
that include:
1. Utilise OWM as a central Web-based collaborative platform, that standardizes all tax processes, due date
management, legal entity information management, document management/archive and overall tax data
management, in a centralized database/platform accessible across ONESOURCE applications, with real-time
tracking and reporting
2. Consolidate and strengthen controls around your Excel workpapers/tax packages and processes by
converting them into standardized, secure, and dynamic Web-based DataFlow Excel tax
workpapers/packages, with all data managed/captured in a central data repository (within OWM); embed
DataFlow packages within OWM workflows to further streamline and standardize data
management processes
3. Share a common set of tax data across the tax life cycle, by utilizing DataFlow and existing
ONESOURCE integration (ONESOURCE Excel Add-In) for “ONESOURCE” of the truth. Data residing in
DataFlow repository should be utilized for global provision and compliance workpapers and
transferred into end tax source systems.
– Existing DIRECT integration with ONESOURCE Tax Provision (OTP), General Ledger Manager (GLM), etc.
– Third-party tax/finance source system integration capability.
OWM/DataFlow – KPMG’s Leading Practices Approach
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Source: KPMG LLP
Some or all of the services described herein are not permissible for KPMG audit clients and their affiliates or related entities.
OWM – KPMG’s Holistic Approach
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Third-party Tax
Systems & Data
Visualizations
OTP
Data Request
Templates
Extraction File
(Excel or CSV)
Analytical/Consol
Templates
Administration
Templates
Global DataFlow
Repository (in OWM)
Other data
(e.g., qualitative)
Finance/ERP/GL
Systems
GLM (central master
chart of accounts)
DA
TA
PR
OC
ES
S
OWM WorkFlow Manager
Events/Due
Dates
Work Flow
Tasks
Documents
DataFlow
WorkFlow
Checklists
Notes
Integrated
Tools and
Reporting
Source: KPMG LLP
Some or all of the services described herein are not permissible for KPMG audit clients and their affiliates or related entities.
KPMG is a Certified Implementer of ONESOURCE tax applications and tools.
• Our KPMG Global Compliance and Transformation (GCT) professionals are OWM and DataFlow
industry leaders and have undergone in-depth training and certification for OWM and DataFlow.
• We have the global experience and have developed leading practices in the full cycle
implementation of OWM and DataFlow, which covers the overall design, build/configuration, testing,
training, and rollout support of these systems.
• Combining our global tax technical, tax process, tax technology, and project management
knowledge, KPMG’s practice is able to provide our clients with an OWM and DataFlow solution that
helps create a next-generation leading global tax department that achieves optimal levels of
efficiency and productivity.
• Joe Habak/KPMG were presented with the Taxologist of the Year Award in 2017 in the Certified
Implementer Program (CIP) category in the US based Synergy conference for their global work
performed in OWM/Dataflow.
OWM – KPMG’s Leading Practices
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Details of OWM/Dataflow project with GSK
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Where did we end?
18
Indirect
Tax
Returns
Statutory
Accounts
Direct Tax
Returns
GSK
Transfer
Pricing
Processes
All other
local
filings
Tax Audit
Support
© 2018 Thomson Reuters/Tax & Accounting
How did KPMG and GSK partner to deliver something special?
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Joint workshop sessions
to determine key
requirements
Creation of new standardised
compliance management
approach in OWM/DataFlow
(serial workflows), allowing real
time tracking/reporting/KPIs using
dashboard reports & data
visualization tool
Embedding of tax
calendar to drive
transparency
Comprehensive
document management
structure through the
FileRoom
Design a new risk
questionnaire package
in DataFlow
Real time compliance dashboards
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Real time compliance dashboards
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What does 2019 look like?
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Phase 2 – Look at 2017/18 project and related feedback,
refresh and optimise WorkFlow/DataFlow approach used to
gain maximum benefit for GSK and KPMG.
Deployment to all regions, followed by tailored training sessions
in OWM/DataFlow for global GSK resources (approx.
400 people).
GSK: Future State: Benefits of OWM/DataFlow Project
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Qualitative Benefits of GSK’s Future State
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1. Strong governance over large outsourcing contract with KPMG –
proving value
- Enhancing stakeholder confidence
2. Standardisation and consistency of the global compliance
process in a single platform
3. Transparency into each milestone status
4. Centralised Administration performed solely by two teams:
GSK and KPMG
5. Risk reduction and better definition of internal controls
6. Better management of global Data providers/foreign controllers
7. Full visibility and reporting (real time information & KPIs)
Quantitative Benefits of GSK’s Future State
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Faster controls testing for audit evidence
More time spent on review and analysis of data (less time spent on
data collection)
Increased value driven from KPMG compliance contract from ‘real
time’ compliance monitoring
Avoidance of penalties through strong monitoring and governance
underpinned by OWM
Summary of Overall Benefits
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With KPMG’s guidance and leadership, GSK’s transformed tax
environment has resulted in enhanced efficiency and productivity,
stronger internal controls & improved accuracy
The new leading practice tax function is centralised, standardised,
automated, and integrated across the tax/data life cycle, using
customized technology and related process redesign/improvement
With a scalable transformation methodology in place, next steps
include further improvement to GSK’s global compliance processes,
along with expansion to other tax and non-tax types/functions plus
the use of robotics to further automate the processes
THANK YOU
© 2018 Thomson Reuters/Tax & Accounting27
Some or all of the services described herein may not be permissible for KPMG audit clients
and their affiliates or related entities.
The information contained herein is of a general nature and based on authorities that are
subject to change. Applicability of the information to specific situations should be determined
through consultation with your tax adviser.
*Views expressed in this session are the views of the Speakers only, and do not necessarily
represent the views or professional advice of KPMG LLP.
Disclaimer
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This presentation is designed solely for the purpose of enhancing knowledge on tax
technology and resources. It is presented with the understanding that the publisher is not
engaged in rendering legal, accounting, or other professional service. If legal advice or other
expert assistance is required, the services of a competent professional person should
be sought.
© 2018 Thomson Reuters/Tax & Accounting.
Thomson Reuters
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