When the CFO asks you to report on the total cash tax position by end of the week

🚨 Data is eating the world. The same is true for tax data.

Tax authorities are stepping up their data game and performing consistency checks and data mining on datasets that include information from corporate income tax returns, indirect tax returns, localGAAP financial statements, the CBCR and TP documentation.

More and more stakeholders are requesting information about a multinational’s tax operations. Transparency, corporate responsible behaviour and ESG are on the rise in the tax world. Next to the raw data, tax teams need to have the context of the data at their fingertips. If not they will not be understood.

If that’s not enough also senior management is in demand of more tax reporting. Often in real-time. The C-Suite and the audit committee want to understand whether there are tax risk exposures, and what mitigation strategies are in place. And for the CFO cash remains king, so tax cash flow reporting is an evergreen hot topic.

It is clear: the heat is on. In-house tax teams will be forced to amp up their tax data management. Now, and with an expected increasing tension going forward. Yet, many in-house tax teams keep their data in a siloed fashion. Separated per tax domain. In different tools, spreadsheets, inboxes, formats and qualities. It’s time for change. The longer you wait, the more painful it will become.