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Tax Management Consulting for a Global Services and Equipment Manufacturing Company

Abstract

As a global services and equipment manufacturer prepares for a multi-year enterprise resource planning (ERP) system deployment plan, the company’s tax department needed to develop and integrate an indirect tax calculation and reporting solution. The company chose a “bolt-on” tax software solution that provides regular content updates, but it faced the challenge of adapting that solution for particular local needs. Working with Deloitte’s Tax Management Consulting (TMC) group, the tax department designed a global indirect tax platform that combines global governance and processes with the capability to accommodate issues particular to each country as the ERP deployment process evolves.

The Challenge

A global services and equipment manufacturer is preparing to implement a new version of its enterprise resource planning (ERP) system in more than 50 countries. This system lacks capabilities that the company requires for reporting indirect taxes globally and maintaining compliance with evolving tax regulations across this wide range of countries. The company considered its alternatives: building tax management capabilities from scratch in the ERP system or utilizing a “bolt-on” tax software solution. Because the tax solution vendor provides regular updates of tax content — including rate and legislation information — the company chose to pursue that avenue. But the company required assistance with developing the approach it will use to implement the solution across the organization once it begins the ERP deployment period.

How We Helped

Deloitte’s TMC group assembled a team to analyze the company’s tax data requirements and its ERP implementation plan over several years. Based on this analysis, our team recommended the development of a global tax software design — one that meets general integration requirements and that can be adapted to specific country needs as the company’s local ERP implementation plans evolve. Then, the Deloitte Tax team assisted in the development of the global tax template, working closely with business owners, the client’s tax team, and an external consultancy and system integrator.

We also worked closely with the client’s software vendor, which has little experience outside of North America, to improve functionality and directly address the client’s tax requirements.

Why Deloitte? The client selected Deloitte’s TMC group for our deep experience and credentials in implementing tax solutions in complex, multi-country organizations, as well our experience integrating tax solutions with ERP systems. In addition, the company valued our objective and up-front discussion about the complexity of the task ahead in certain countries, our flexible approach, and our ability to access appropriate resources for addressing country-specific tax requirements.

Solution

One of the client’s critical challenges was developing a tax solution today that will be effective as the company’s ERP deployment strategy matures over many years. Tapping our extensive experience working with complex, global organizations, Deloitte’s TMC group provided requirements for a single tax calculation and reporting platform — one that allows  the client to gain regular content updates and helps eliminate the need for manual updates, and one that will allow  the company to address tax positions specific to its countries but with centralized governance and processes once the ERP implementation program begins.

To learn more about Deloitte’s approach to ERP implementation, contact your Deloitte adviser or email us at tmc@deloitte.com. For additional resources, visit www.deloitte.com/us/movetaxforward.

As used in this document, “Deloitte” means Deloitte Tax LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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