Innovation Week Extract - deloitte.com · • Data Analytics: A new era for the tax and finance...

Innovation Week ExtractDigital acceleration in Finance

© 2018 Deloitte - Laga Belgium 2Legal Management Consulting (LMC)

Content

• Our Tax & Legal digital future

• Enter planet AI

• Advocating a digital strategy for tax agencies

• Transformation of the tax function: Tax operating models & move to digital

• Data Analytics: A new era for the tax and finance function

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Our Tax & Legal digital future

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For more information, contact:

Conrad Young

Chief Digital Officer, Deloitte Tax & Legal Global

[email protected]


Our tax and legal digital future

We believe there are 5 technology trends which will define our digital future:

1. Big data – large volumes of structured and unstructured data accessible and usable at scale

2. Process automation - robotics getting ever more expert

3. Decision making – artificial intelligence, cognitive computing and machine learning

4. Democratisation of knowledge – information widely available online

5. Open networks – collaborative ecosystems of talent, technology suppliers and revenue authorities

The defining technology trends

It’s hard to be precise about what digital future those trends will create, but certain characteristics seem clear:

1. We will be more data driven leading to a much more holistic approach at the enterprise level

2. Big data will lead to greater granularity, precision and accuracy

3. Algorithms will become increasingly important in the way we work - apply our expertise, knowledge and experience

4. Robots will take the strain

5. Our online experience will be more personalised and consumed more through video, VR, NLP and online forums

Our digital future

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Enter planet AI


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Andrew Pease

Senior Director, Technology

[email protected]

+32 2 302 24 09


Enter Planet AI© 2018 Deloitte - Laga Belgium 10

The Strategy

What data do we need to workout what happens in our business?☻ Systems ☻ Software ☻ Security ☻ Strategy ☻ Governance

> Facts/Data

Past and Present

What is happening in our business?How many, how much, how often?How are we performing?

> Information

The Future

Why is this happening?What will happen in the future?How do we take advantage?

> Knowledge

Augmented Intelligence

Tax and Finance Analytics

Information Management

Design | Implement | Manage

Performance Optimization

Review | Analyze | Report

AnalyticsInsights

Optimize | Analyze | Predict

AnalyticsApplied


Augmented Intelligence

Tax and Finance Analytics

TaxData

Indirect taxes

Direct Taxes

Transfer Pricing

Provision

Global Mobility

Global tax

planning


Augmented Intelligence For Financial Risk

Source: Thomas H. Davenport, April 2017


• Analytics used to make automated decisions

• Emergence of “cognitive technologies”

• Replacement of digital/physical human tasks

• Augmentation by humans

Source: Thomas H. Davenport, April 2017

Ethics – augmentation by humans

1.0

2.0

3.0 4.0

© 2018 Deloitte - Laga Belgium 14

Advocating a digital strategy for tax agencies

By Dirk De Smedt, director general fiscalité Bruxelles


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Tim De Meyer

Senior Manager, Consulting

[email protected]

+ 32 2 749 56 45


Topics

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Advocating a Digital Strategy for Tax Agencies

A Digital World

Necessity for Public Services

Digital Strategy

Translate to a Tax Agency

Operations

Customer Solutions

Skills and Culture

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Transformation of the tax function: Tax operating models & move to digital


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Annelies Dieusaert

Partner

[email protected]

+ 32 2 301 82 81



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Our predictions

Automation and blockchain have streamlined transaction processing. The majority of transactions are now touchless. Headcounts plummet. Human capacity unleashed.1

With operations automated, Finance & Tax doubles down on business insights and service. Organizational and enterprise boundaries blur. 2

Tax goes real-time. Periodic reporting will no longer drive operations and decisions. 3

The shift to self-service will accelerate. Radically. 4

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Our predictions

New service delivery models emerge for operational finance, business, and tax. Work is completed by a combination of humans, robots, and algorithms. Companies will rethink offshore operations.

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Finance & Tax applications and microservices will challenge the traditional ERP. Big vendors will be ready. 6

The proliferation of public & private APIs drives data standardization, but it won’t be enough. Companies will still struggle to clean up their data mess.7

The best way to predict the future is to create it.

- Peter Drucker

Transformation of the tax function 21

Tax technology can be confusing – whilst tax systems are getting more and more sophisticated, there is still no single off-the-shelf solutionthat addresses all elements of tax.

Instead, there are a multitude of vendors and systems which makes planning a cohesive, integrated solution a complex and challenging endeavor…

Impact on Tax Technology

Transformation of the tax function 22

Why look at your tax technology?Tax technology landscape

•Corptax•BNA Corporate Tax Analyser•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•iVAT•Sales and Use products (US)•Deloitte VAT Smart/VAT Wizard•Sovos

Indirect Tax Return

•Oracle Hyperion Tax Provision•ONESOURCE Tax Provision•Longview Tax Prov. and Reporting•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 Dashboards

Entity-Level•Multiple products

Consolidated•Deloitte VAT Smart•Microsoft Navision•CCH Global Integrator•Deloitte Conversion Tool (DCT)

Enterprise-Level•Vertex Enterprise

Tax Data Stores

•ONESOURCE Indirect Tax Determination•Vertex Indirect Tax Solutions•Taxware•FuelQuest•Native ERP•Avalara•Add-ins/add-ons/boutique solns

Indirect Tax Determination

ERP Systems•SAP HANA•Oracle, incl. JDE & PeopleSoft•Microsoft Dynamics NAV•Digita•SageConsolidation, Business Intelligence and Enterprise Performance Management•Oracle EPM•Oracle HFM•SAP EPM•IBM Cognos•Longview CPM

Source Business Systems

Master Data Management

Tax Data Stores Reporting Key OutputsSource Business Systems

Enterprise

TAX DASHBOARD

Workflow, Status, Documents, Analytics

Consolidation Forecasting

ERP

Tax determination

Accounting s/w

Excel

Other systems

Provisioning

Transfer pricing

Tax return s/w

Stat account s/w

Report writers

Single entity

Consolidated

Tax risk reports

Provisions

Returns, forms e-filings

CbC reporting

TP documentation

Statutory accounts

Work papers

Forecasts

Transformation of the tax function 23© 2018 Deloitte Belgium 23

Eight strategic questions to consider

1. WHAT is your future digital tax strategy?

2. WHAT work can be done by smart machines and robots?

4. WHERE can the work be done?

3. WHO can do the work?

5. HOW does the future of work change organization design and behavior?

6. HOW does the future of work change leadership?

7. HOW does the future of work change talent, career, and learning?

8. HOW do you develop a workforce experience for the future workforce?

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Data Analytics: A new era for the tax and finance function


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Andrew Pease

Senior Director, Technology

[email protected]

+32 2 302 24 09

Liesbet Nevelsteen

Partner

[email protected]

+ 32 2 600 66 53


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Not everything that can be counted counts, and not everything that counts can be counted.

In data we trust.

What gets measured, gets managed.

Once we know something, we find it hard to imagine what it was like not to know it.

The goal is to turn data into information, and information into insight.


OECD reporting

Setting the scene

In the U.S., strict requirements have been enacted to identify potential weaknesses of tax processes

In Europe, the trends are more to move to e-audits and deliver a standard audit file for tax to the authorities

In Australia, since 2010 large businesses have been assigned a risk rating by the Australian Tax Office. The risk rating was derived from extending and enhancing data analytics and risk profiling techniques

In India, the strategy seems to be having more audit-based controls opposed to physical controls. Relaxation of controls is coupled with introduction of strict penalty provisions including provision for prosecution

In Brazil, elimination of the filing of corporate tax returns beginning in 2014 due to large amounts of required data that the Brazilian Tax Authorities already maintain.

In Japan, the National Tax Agency is increasingly focused on tax governance of large corporations. Frequency of tax audits may be reduced following enhancement of dialogue and internal controlsIn Mexico 2015 standard,

monthly XBRL filings

In Netherlands, tax authorities released 5,000 agents while hiring 1,500 data scientists to focus on tax return data analysis


Level of digitization of tax authorities

Setting the scene

Level 1: “E-file”

- Entities are required to use a standardized format to file returns;

- Other financial data might need to be added manually

Level 2: “E-accounting”

- Entities are required to submit accounting or other source data to support flings

Level 3: “E-match”

- Authorities begin to match data across tax types, taxpayers, jurisdictions, …

Level 4: “E-audit”

- Level 2 data is analyzed by authorities and cross-checked to filings in (near) real-time

- Authorities send electronic audit assessments with a limited period to respond

Level 5: “E-assess”

- Authorities use submitted data from entities to assess tax without the need for tax forms

© 2018 Deloitte Belgium

Slide 29 of 59

Curious about data insights

Approach is rooted in cross-discipline analytics science, propelled by business needs.

Focus on outcomes

Make smarter, strategically alligned decisions. Analytics are crucial to achieving them.

The best analytics initiatives start with outcomes in mind—along with a plan for realizing them.

Delivered in the context of your business and industry

Analytics capabilities need to be industry focused.

What are analytics?

Powerful insights to inform strategy and decisions


Slide 30 of 59

What if you couldidentify the topconsumer color preference to exploit first-mover advantage?

What if you could

anticipate next

month’s sales

accurately

enough to

adjust

production

targets?

What if you could

instantly tap into

everything being

written about

your business –

to make faster,

more informed

decisions?

Identify Predict Detect Anticipate Tap into

What if a company could proactively detect fraud and “nudge” the potential perpetrators to do the right thing.

What if you could predict supply chain interruption and mitigate risks in real time?

What are analytics?

Powerful insights to inform strategy and decisions


Slide 31 of 59

INSIGHT STRATEGY• Target Architecture

• Data Monetization

• Data Science Studies

• Studio & Lab Services

• Natural Language Processing &

Text Analytics

• Content Analytics

• Real-time Decisioning &

Streaming

MANAGED ANALYTICS

• Infrastructure as a Service

• Platforms as a Service

• Data as a Service

• Information Delivery as a Service

• Cognitive Engagement

• Cognitive Automation

• Cognitive Sensing & Shaping

• Cognitive Insights

ADVANCED ANALYTICS

COGNITIVE ANALYTICS

• Master & Meta Data Management

• Information Quality & Governance

• Records Management and Archiving

• Information Architecture & Lineage

INFORMATION DELIVERY

• Data Integration

• Data Warehousing

• Data Brokerages & Exchanges

• Virtualization

PERFORMANCE MANAGEMENT

• Enterprise Performance Management

Strategy

• Consolidations

• Cost Management

Our Insight Advantage Accelerators

Becoming an insight driven organization


Building blocks of holistic tax data analytics

The importance of tax data

Tax Data Warehouse

Indirect taxes

Direct Taxes

Transfer Pricing

Provision

Global Mobility

Global tax

planning

© Deloitte Belgium 2018

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Innovation Week Extract - deloitte.com · • Data Analytics: A new era for the tax and finance...

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