5 trends in Tax Reporting
The world of tax reporting is always shifting. This is not only due to changing legislation, but also due to growing social interest in the tax choices of organizations. How will this affect tax reporting? And the collaboration of the tax and finance department?
The five most important trends.
Country-by-country reporting
For the year 2016, multinationals with revenues higher than 750 million euros have to submit a country-by-country report with the tax authorities.
Higher demand for transparency
Social developments demand more transparency concerning tax payments and fiscal structures. This leads to more and more online publications of fiscal strategies. Furthermore, fiscal key figures are being incorporated in sustainability reports, for instance insights into tax remittances, the added value to the economy and tax payments per employee.
The necessity for accurate data within the whole organization
There is a strong need for accurate data within the organization. Besides information requests from other parts of the organization, it is crucial to be able to estimate future tax positions and remittances accurately.
Collaboration between tax and finance
The tax and finance departments are mutually dependent in order to deliver correct financial reporting and tax statements. Their dependency is moving progressively towards collaboration in data collection and analysis.
The rise of corporate tax reporting applications
By using corporate tax reporting applications, the tax department can take big steps in collecting, analyzing and optimizing information. The corporate tax reporting tools can be used independently or completely integrated in an existing Performance Management solution.
The perfect level of detail
Summing up, these trends demand and offer a smooth and effective tax reporting process. The correct level of detail needs to be collected and reported without any effort. For today and the years to come.