Cases

At the request of a large multinational, in the second half of 2009 The Resource made a tax accounting inventory and analysis. This project optimised the worldwide tax reporting of the company. The company hired Senior Tax Accountants of The Resource for management and execution of this project.

Purpose of the assignment

Purpose of the project named “Optimisation Tax Reporting” was to improve and clarify the tax reporting, and to enhance knowledge of the tax compliance and tax risk profile of the company. This was accomplished with the implementation of standardised, practical templates for the effective reporting and disclosure of current and deferred tax positions and a comprehensive tax questionnaire. Target was to have the renewed reporting and information flows fully implemented for 2009 year-end closing.

Activities

Our project-based approach started with a project plan which covered the following phases:

• Inventory/analysis
• development/introduction/communication
• implementation/testing
• evaluation/final implementation 

At this project, the Senior Tax Accountants of The Resource made use of a self-developed tax reporting model. This model is a transparent and effective tool for the reporting of (movements in) current and deferred tax positions. It is based on the  anticipated corporate income tax return. The latter leads to an additional advantage: an earlier, more effective and hence cost saving preparation of the tax return. A Tax Questionnaire developed by The Resource was used.

The project comprised a strong focus on communication. This was done utilizing a detailed communication plan on which all the stakeholders were informed and involved. This included the Executive Board, Business and Reporting Units, the relevant Head Office departments and the internal and external auditors in an appropriate and timely manner.

The target date set for the project was fully met. The approach has led to improved transparency and efficiency in the reporting and the compliance processes of the company. Furthermore, knowledge of the tax compliance and tax risk profile of the company increased which has led to improved control. The resulting database with all relevant tax(-related) information contributes to the identification and development of tax planning opportunities.