PwC

Tax & Legal

Framework for the implementation of a successful tax compliance management system (Tax CMS) 


Many businesses have already implemented a Tax CMS; often, however, this does not yet meet expectations. Frequently a system is created which is too generic, with a risk identification process which is insufficiently specific for the business at hand and with specifications too vague to implement risk limiting measures. Furthermore, such bulky and artificial Tax CMS-constructs often exist on top of other operating processes. This gives rise to additional workloads for the employees without in many cases generating the desired liability limitation. Moreover, the options for automation are often only used to a limited extent in the area of taxation. This is why a proper Tax CMS implementation is so important.

In contrast, a common denominator among successfully implemented projects is regularly that the matter is approached in an absolutely goal-oriented manner with the necessary measures being integrated as seamlessly as possible into the operative processes as well as being supported by IT technology. Furthermore, the relevant tasks and requirements must be understood and adopted by the relevant employees and routinely integrated into day-to-day business operations. It is highly recommendable to pull together the required knowledge and experience from the different specialist areas (CMS implementation, process management and detailed tax expertise) in such a way that an effective and – at the same time – cost-efficient Tax CMS can be set up that supports the operative processes instead of hindering them. The prerequisite for such a Tax CMS is to enable a high (tax) data quality. Automation can provide significant support in this respect, e.g. automated decision processes, process mining, robotic process automation and reverse data engineering.

 

It will be exciting to see what further progress digital transformation the future will bring in the next few years. It can be assumed that much will revolve around the combination of people/data – processes.

For more information, contact:

Marinus Eßer
Tel.: + 49 89 57906819 
E-Mail: marinus.esser@pwc.com

Hendrik Blecken
Tel.: + 49 89 57906016
E-Mail: hendrik.blecken@pwc.com

Jörg Hanken
Tel.: + 49 89 57905424 
E-Mail: joerg.hanken@pwc.com