The State of the Corporate Tax Function in Australia: Insights & Roadmap

Today we live in a world driven by public perception around the topic of “justified trust” when it comes to the corporate tax system. Our latest report, ‘Wolters Kluwer State of Corporate Tax Function’ reveals there is great interest in knowing the corporate taxpayer is complying with all relevant tax obligations – wherever you may be in the world. We also have a greater need to detail how well the tax system here in Australia is working. Is it targeting the right people and are we all paying our fair share? It’s quite an Australian consideration at the end of the day.

With such renewed focus on tax as a deliverable, the impact to the corporate tax function can be considerable. It has never been more important to advise your internal stakeholders, run your business and manage your obligations at the same time. No longer are you able to choose between two of the three – technology is aligning the corporate tax function closer and closer to the Australian Taxation Office (ATO).

The community’s perception of corporate tax

We recently surveyed our Wolters Kluwer tax manager network about the Voluntary Tax Transparency Code, designed to positively represent the corporate taxpayers of Australia to the wider public. Less than 20 per cent of our respondents believe that the community understands the corporate sector’s compliance with Australia’s tax laws. So, we may have a way to go to raise the public perception that the corporate taxpayer is reporting and paying the right amount of tax.

In 2016 corporate Australia generated a $64 Billion income tax contribution. Some would say this is vital for our economy whilst other more political and populist points of view may say large businesses are in fact able to manipulate the tax system – and not contribute to their fair share of tax income.

The expanding corporate tax function

Whichever way you look at it, the role and importance of tax revenue has changed and so too has the corporate tax function. Previously focusing on preparation, compliance, assurance and governance, the role has now expanded to include the advent of accounting intelligence and robotics. Essentially, it has moved more to a high-level assurance, governance and strategic role than it has been historically.

Technology has an important role to play in creating a more ‘intelligent’ corporate tax function – it can help the corporate tax function of Australia improve compliance and reporting.

The technology roadmap

• Automate the routine – rationalise the data sets, review any reconciliations to see if they can be automated
• Take stock of the systems and spreadsheets to identify duplication and find opportunities for rationalisation
• Ditch the spreadsheet if you can – machine learning or automation can only solve problems when you remove reliance on spreadsheets and have the proper systems in place
• Be prepared for robotic data transformation – Wolters Kluwer has already launched its first module within CCH Integrator to transform Australian Local File reporting for transfer pricing and business information, a component of the OECD/G20 Base Erosion and Profit Shifting Project (BEPS). With robotic technology, a bot will now facilitate and dramatically improve the automated processing, validation and electronic lodgement of reports for intercompany transaction data straight through to the ATO.

Learn more about the status of the corporate tax function in Australia, from our recently completed ‘Wolters Kluwer State of Corporate Tax Function’ report. Read insights from Greg Williams, Deputy Commissioner – Smarter Data Program, ATO; Karen Payne, CEO for the Board of Taxation and Fiona Ritchard, Tax Counsel – Corporate and Australia, Coca-Cola Amatil.