The Tax function should be our company’s strategic partner—not a mere compliance function. First, let’s understand…
What is Tax Management?
Tax Management is the corporate finance function that is responsible for the management of finances for the purpose of paying taxes. Tax Management deals with managing tax risks and addressing tax reporting, compliance, and accounting needs. Tax Management can support our operation in many ways, which include:
• Gathering data on every part of our business, including employees, assets, and intellectual property, in all territories.
• Ensuring a comprehensive accounting of the entirety of our business every year.
• Compiling all information together for regulators.
Hence, it is important that Tax Management should be integrated into our organization’s daily operations. When effectively and efficiently managed, Tax Management can strategically direct our company to reach global competitiveness.
Tax Management has 4 goals:
1. Use Data as an integral part of the business.
2. Integrate tax data with operations.
3. Engage the tax function with external stakeholders.
4. Elevate the tax function to the role of strategic contributor.
Tax functions are constantly evolving. Through Tax Transformation, your company can effectively chart a course in a world of budget and resource constraints. There are 5 stages of Tax Transformation:
1. Initial
2. Informal
3. Standardized
4. Managed
5. Optimized
Every stage of Tax Transformation builds up your company’s competitiveness. The 5 stages of Tax Transformation is a journey of systems improvement and integration of Tax function with IT, Operations, and Finance.
Development of a tailored, all-encompassing Tax Transformation Roadmap will further direct your organization in effectively managing the changing demands in the tax arena. The key to success is to define your company’s own unique Tax Strategy and make it part of our overall corporate vision.
Need Help to design your Tax Strategy ? Contact Dawgen Global Tax Team at : [email protected]
