Tax and Business Transformation: Using Technology to Elevate the Tax Department’s Role
There are at least three good reasons why tax executives should be strategically involved with major business information technology (IT) initiatives, such as enterprise resource planning (ERP) projects.
- First, tax departments are generally the largest consumers of financial data within their organizations; therefore, it is critical that IT systems capture most, if not all, tax data requirements.
- Secondly, approximately one-third of reported material weaknesses have been attributable to tax, and lack of appropriate data raises the risk of financial reporting as well as tax compliance errors.
- Finally, with taxes representing the largest expense item on most companies’ financial statements after cost of sales, tax involvement could mean significant benefits in the form of lower operating costs, reduced risk, and enhanced tax planning.
Despite these compelling reasons, the tax function often is not at the table during planning for transformative IT initiatives. In this report, Deloitte reviews the roles of the tax executive and a potential framework for facilitating their involvement in strategic projects. The report also provides considerations for developing a tax technology business case to support key IT initiatives.
Download the full report to learn more.