In my last post I discussed making CbC reporting a strategic issue. The second step is to:
Assess IT and Tax Resource Needs - It is critically important that corporations immediately assess if their existing financial accounting systems will allow their companies to comply with these new reporting requirements. Many companies will also need to actively consider technology solutions to collect, store, analyse, and prepare the CbC reporting templates in an accurate and defensible fashion. Also, corporate tax departments should evaluate their internal processes and if additional staff may be required to deal with the compliance and tax audit management requirements that will likely arise as a direct result of the CbC reporting template. All of these added costs will need to be factored into the corporate budget and discussed with senior management, audit committees, and other stakeholders as soon as possible.
Look for my next post when I will outline the third step.
Please remember that the Tax Matters provides information for educational purposes, not specific tax or legal advice. Always consult a qualified tax or legal advisor before taking any action based on this information.
Bob Norton, Specialist Leader at Deloitte, was formerly Chief Income Tax Officer in the Chief Tax Office (CTO) of Vertex, Inc. Bob has more than 30 years of corporate tax, accounting and technology experience from both public accounting and global industry. Prior to working at Vertex, Bob held several senior financial management positions running global tax, treasury, and merger and acquisition functions for Siemens' Medical IT division. Bob is a noted author and speaker and sits on the Editorial Advisory Board of Financial Executives magazine and is a member of FEI, the Tax Council, AICPA, PICPA, and the Association for Computers and Taxation. He is a CPA and received a B.S. in Accounting from the Pennsylvania State University and an M.S. in Taxation with honors from Villanova University.