Jul 09, 2015
From the KPMG TaxWatch
Companies of all sizes face a common challenge - the increasing complexity of business operations and immense volumes of data coupled with a need to calculate tax effectively. This challenge calls for a new way of thinking about how taxes, indirect taxes in particular, affect their business. Indirect taxes have a direct impact on the entire supply chain because they are imposed on a transaction-by-transaction basis with a series of tax, exemption, and credit mechanisms.
Indirect taxes are typically calculated on many, if not most, business transactions with the calculation, reporting, and payment varying by jurisdiction. It's essential for businesses to effectively manage their tax burden to protect resources such as cash and employee productivity while at the same time ensuring regulatory compliance and mitigating risks of penalties imposed during tax audits.
The combination of an established team of professional tax service providers and an automated tax management solution can aid organizations in their efforts to mitigate tax burdens by automating determination and payment processes, reducing overpayments and other carrying costs, maintaining tax audit data files, and identifying tax risk profiles. This paper, collaborated on with KPMG LLP and Thomson Reuters and written by CIO Publishing, can help explain the indirect tax landscape and how organizations can utilize automation to elevate their tax management processes.