With the increased use of technology, and increased scrutiny of large business by the tax authorities, indirect tax processes are no longer just a tax process, they are an essential part of your overall business.
Indirect tax impacts virtually every part of the business; finance, legal, HR, IT, risk, treasury, sourcing, sales, and more. GST is a transaction based tax that will go through your accounts receivable and accounts payable system/sub – systems, supplier or vendor set up, GL system, tax and management reports, as well as a potentially myriad of manual processes; depending on how your systems and processes are set up. Therefore, it is important for senior management to understand that the Indirect Tax function must also be familiar with the daily operations of the business.
Tax authorities increasingly interested in data
Tax authorities all over the world are also now increasingly interested in data. They expect to be able to access your raw data and test it within their own systems. Long gone are the days when you could show the tax authorities how your systems and processes should work. Tax authorities expect businesses to understand their wing-to-wing processes, the systems and process used, the controls in place, and that businesses ensure that those controls are test regularly and work.
Cross border operations and/or outsourcing models add to the complexity of ensuring that tax processes are working and tax advice you obtain is correctly implemented. Failure to correctly implement tax advice, review systems’ or process upgrades, can mean the money you paid was wasted.
Indirect tax impacts virtually every part of the business; finance, legal, HR, IT, risk, treasury, sourcing, sales, and more
To go a step further, understandably most companies are forever on the lookout for ways to save money. Therefore, it is important to ensure advice and changes are relevant, effectively implemented and subsequently tested post implementation.
At Specialist Tax Group we use a holistic approach in understanding your business operations, as well as your business priorities, so that you can align and direct resources to the right area first. Lastly, ensuring your tax operations are operating effectively and compliantly is our fundamental focus as Indirect Tax professionals.