Are you ready for real-time taxation? In the past year, the phrase has been mentioned with growing frequency among governmental tax administrators, executives of technology companies, and an interesting collection of thought leaders in the global tax realm.
This year’s award for the country with The Most Complex Tax and Accounting Environment goes to…Before we get there, it’s important to note that tax complexity, while crucial, only represents one dimension of a country’s global financial competitiveness. Compliance demands imposed by accounting rules and regulations are an important measure, too, although these challenges often receive less attention.
Blockchain applications are emerging faster than you might expect. The potential business impact is enormous, including significant tax implications. The distributed ledger technology is “redefining what it means to transact, so dramatic changes across an enterprise should be expected,” according to a new Deloitte report.
In January, the Cooperation Council for the Arab States of the Gulf – also known as the Gulf Cooperation Council (GCC) – announced a formal agreement regarding a new value-added tax (VAT) to be adopted by GCC member countries which are Bahrain, the Kingdom of Saudi Arabia (KSA), Kuwait, Oman, Qatar and the United Arab Emirates.
Cloud technology adoption is soaring, which is elevating the tax function’s need to consider cloud investments.
It’s hurricane season for tax professionals. During our recent European conference we discussed the powerful winds of change impacting tax functions. The event provided a unique opportunity to share perspectives with industry colleagues, alliance partners, and other thought leaders on a range of transformational tax trends.
The India GST Council released a draft tax rate schedule for more than 1,200 products and services that still may be subject to change until approved by the government. In early June, the GST Council will reconvene to hash out tax rates for more items. The rates that the GST recently shared “do not indicate a major deviation from the present tax rates, while also ensuring that GST should not pinch the consumer’s pocket,” according to The Economic Times.
Audit exposure. Financial restatements. Class action lawsuits. The consequences companies face for failing to successfully navigate the daunting complexity associated with communication services taxation can be severe. Managing these intricacies has grown more challenging as the world continues the rapid transformation to become more mobile.
In February, the European Union (EU) considered legislation that would have levied a new tax on robots. Although the proposal did not compute with most EU lawmakers, its materialization shows that robotics – along with machine learning, artificial intelligence (AI) and related forms of 21st Century automation – are pushing traditional tax concepts into new territory.
Numbers feature prominently in the narratives describing India’s massive tax reform. The country’s adoption of a completely new, highly streamlined and much anticipated Goods and Services Tax (GST) features some compelling data points.
Business and tax leaders appear more optimistic about the possibility of US tax reform than they have in decades. While this feeling is fueling a surge in companies’ stock prices and optimism is in the air at any tax conference these days, could there be any risk that tax reform will not occur?
Qualifiers are crucial when addressing withholding taxes on domestic business-to-business transactions in Latin America. These qualifiers – which include phrases like “usually,” “at the moment,” and “in other cases” – point to the inherent complexity of withholding tax applicability, rates, calculations and exemptions in Argentina, Brazil and Mexico.
Legislative bills related to India’s historic sales tax overhaul received approval from the country’s Lower House of Parliament in late March. On April 6, 2017, the Upper House of the Indian Parliament also accorded its approval to the draft bills, without recommending any changes or amendments.
Decades ago, the phrase “permanent record” alarmed high school students who worried that their bad behavior might have undesirable consequences in the distant future. Today, the ubiquity of social media and mobile devices gives new meaning to the phrase. Today’s bad behaviors that are posted online are certain to become part of our highly public permanent records.
On March 16, India’s influential Goods and Services Tax (GST) Council approved the draft State GST (SGST) and Union Territory GST (UTGST) bills, completing its approval of all five bills related to the proposed new indirect tax system. While additional approvals of the legislative package are needed, this massive overhaul of the country’s taxation system remains on track to take effect July 1.
Corporate tax functions should welcome hackers with open arms. I’m serious. Vertex recently completed a one-day hackathon in which colleagues from a diverse collection of business and functional areas gathered to brainstorm and develop potential solutions for a user interface (UI) challenge, designed by a team of Vertex employees.
There’s a good reason why the improvisational comedy TV show Whose Line is it Anyway? has run for over a dozen years on three networks and in two countries: people love to watch talented performers wing it.
President Ronald Reagan famously used the phrase “trust but verify” to describe the United States’ stance regarding the Soviet Union’s compliance with nuclear arms reduction treaties. Across the globe, governments traditionally embraced a similar philosophy regarding corporate compliance with tax regulations.
As global corporate tax reform progresses, discussions continue to intensify about implications for multinational enterprises (MNEs) headquartered in the US. In June 2016, the US Treasury Department and the Internal Revenue Service released final regulations concerning Country-by-Country Reporting (CbCR).
As global tax reform driven by OECD Base Erosion and Profit Shifting (BEPS) Actions progresses, regional overhauls are also speeding ahead. India is now one step closer to rolling out the largest reform of its indirect tax system in a quarter century.
Due to its sweeping nature, the OECD’s BEPS initiative is set to transform the global tax environment, raising a host of risk-laden questions: How onerous will compliance be? Will this unprecedented level of transparency increase an organization’s reputation risk? How will customs processes change? Will BEPS requirements alter the valuation of proposed mergers and acquisitions?
In my last post, I discussed how successful leaders can drive organizational change. But that’s only part of the equation; employees also need to be part of the calculation and actively involved if organizational change efforts are to succeed.
People have always longed for the ability to predict the future. Today, many hope that big data and predictive analytics will help them do so. Although big data and predictive analytics can deliver major benefits, it is important to understand what they can realistically help organizations achieve.
When it comes to comparing different types of requests for proposal (RFPs), software RFPs would be apples and services RFPs would be oranges. Therefore, tax managers preparing an RFP for a service should keep in mind the differences between the two types, and that the creation of services RFPs requires a specialized approach.
The outcome of the recent US Presidential election surprised many, and it is just one more in a string of recent drivers of global economic, legislative, and regulatory uncertainty. Brexit, EU State Aid investigations, and the OECD Base Erosion and Profit Shifting (BEPS) Actions figure most prominently among these disruptions; each will significantly influence foreign direct investment, trade, banking, corporate taxation, and the exchange of tax information between jurisdictions.
A partnership is often referred to as a two-way street, alluding to the give-and-take dynamic of the parties involved. This dynamic of mutual understanding and collaboration, along with established objectives, result in the most effective partnerships. These attributes are demonstrated once again in the latest product and solution released from the two-decades-long partnership between Vertex and enterprise technology provider SAP.
Congratulations to ALDI, Best Buy, Coca-Cola, Johnson & Johnson, Koppers, and United Services Automobile Association (USAA)! These six companies were honored with Corporate Tax Innovation Awards at this year’s annual Vertex Exchange conference last week.
Insights from two leading data security and privacy experts happen to describe the purpose of a new tax policy/technology forum comprised of leaders from multinational enterprises (MNEs), worldwide governments, non-governmental organizations (NGOs), and global software and services companies, including Vertex.
The demand for technology professionals throughout Latin America will outpace supply by 2019 -- that insight comes from a study commissioned by Cisco for IDC, and it has some troubling implications for the tax functions of companies doing business in the region.
Each year, Working Mother magazine collects extensive data about the workforce policies of US companies regarding their benefits, childcare, flexibility, parental leave, and company culture. After stringent analysis, their list is culled to 100 exemplary companies, selected for their outstanding leadership in creating progressive programs to support all employees’ work and home lives. It’s gratifying to me and everyone in our organization that Vertex was selected as one of the 2016 Working Mother 100 Best Companies.
While most of us are trying to get our heads around what the Internet of Things (IoT) is, many of our devices have started using IoT (also known as “ubiquitous computing”) information. This exchange of information often takes place without our knowledge, and it’s already influencing how we experience the world.
When it comes to the adoption of enterprise cloud technology, many companies are “barely out of the first inning.” That is what Oracle Vice President of Technology Robert Shimp told VentureBeat and that the same prognosis was repeated, in optimistic terms, at the Oracle OpenWorld conference in San Francisco.
The need for tax leaders and their tax functions to closely collaborate with CFOs, other C-suite executives and the Board will intensify due to compliance requirements related to the OECD’s Base Erosion Profit Shifting (BEPS) action plan.
Is U.S. corporate tax reform on the horizon? Although the issue demonstrated a vexing ability to appear and – just as quickly -- disappear from the legislative radar screen in recent years, there are several signs that genuine tax reform could soon have more traction, and longer staying power.
Based on years of interactions with corporate tax leaders, I’ve grown familiar with a common set of challenges that afflict tax departments of all sizes, across all industries and geographic regions. These trials include being under-staffed, under-funded, and engaged late when emerging business models are considered.
Tax leaders who’ve grown weary from beating down a procession of major tax management challenges – only to see an onslaught of new tax challenges pop up each time – might find that their jobs feel like an endless version of the arcade game Whac-A-Mole.
We are pleased to have entered into an alliance with KPMG LLP, the US audit, tax, and advisory firm.
Most tax professionals I meet are interested in information that can help them elevate the strategic value of their tax functions and advance their careers.
While BEPS requirements and the drama surrounding the British exit from the European Union (EU) dominate the global business pages, a potentially more dramatic issue is unfolding in Europe: state aid investigations into prior tax agreements throughout the EU.
Hadoop is the “most-deployed and most-discussed big data technology,” according to enterprise software expert and Demandbase SVP technology Aman Naimat. The open-source software platform is commonly described as an “ecosystem” that stores and processes vast amounts of data via many different components.
If the current view by the OECD and country revenue authorities is that BEPS guidelines, in particular Country-by-Country Reporting (“CbCR”), are just a minimum standard, what does this mean for corporate taxpayers trying to comply? Does this mean the door is wide open for continued change year over year? Are corporate taxpayers being lulled into a false sense of security if they just follow the current guidelines without thinking about future changes? Is there a high probability that countries are just using the guidelines today as the “easy button” to adopt and get moving on BEPS compliance as requested by the OECD and that once up and running, they will move the goalposts as soon as they can?
BEPS is boosting tax management to a Board-level concern. That’s one of the major takeaways of a global BEPS survey conducted by Deloitte. The survey findings are based on responses from over 600 tax and finance managers and executives from multinational companies (MNCs).
Thus far Britain’s vote to leave the EU has sparked concern, bouts of panic, and plenty of misinformation. I will outline five key Brexit points and perspectives to steady you as the vote’s aftereffects reverberate.
The Organisation for Economic Cooperation and Development’s (OECD’s) Base Erosion and Profit Shifting (BEPS) project represents a fundamental change to the global tax system. BEPS is already elevating the strategic profile of tax departments within multinational corporations.
As leading tax and business minds around the globe flesh out what the post-BEPS world will look like, it’s becoming apparent that the tax function’s performance – and its strategic credentials – will hinge on its ability to address the massive data management challenge that BEPS and related disruptions create.
“The retailers that will move ahead of the pack in the coming year are those that can deliver a consistent, clear, clean, simplified, and seamless message across all channels.”
That assertion appeared in Deloitte LLP’s “Retail Industry Outlook” last year, and it remains highly relevant today.
CEO Insight’s annual “Best in Class” awards, which recognize best practices and innovation, honor Vertex as the Top Tax Technology Provider in the publication’s May issue. That’s high praise coming from a UK-based publisher that’s been described as a blend of The Wall Street Journal and The Economist.
New research contains doses of good news and bad news for chief financial officers (CFOs) and chief tax officers (CTOs) striving to avoid financial statement errors.
Retail companies of all sizes confront serious challenges for “more” of just about everything these days.
Specifically, retailers face challenges related to selling through more channels; conducting business in more countries; adjusting to more merger & acquisition (M&A) activity; adhering to more rules and regulations; and tracking down more tax data that resides in more and more information systems.
John Kotter, Harvard Business School Professor and Chairman of Kotter International, stated, “Perhaps the greatest challenge business leaders face today is how to stay competitive amid constant turbulence and disruption.” Kotter’s thinking on change management resonates with Vertex’s emphasis on leadership and driving performance. I also suspect his approach to leading organizational change may be broadly applicable to a variety of change-intensive settings, including tax functions.
Back in December 2015, the U.S. Treasury Department and the IRS jointly release their proposed U.S. country-by-country (CbC) reporting regulations related to the far-reaching Action Plan 13 on Base Erosion and Profit Shifting (BEPS) effort by the Organisation for Economic Cooperation and Development (OECD).