TAX COMPLIANCE
Tax compliance is not solely about submitting an annual tax return.
Identifying Tax Compliance Obligations
Identifying new tax compliance obligations may save you significant amounts of money in taxes and penalties. We all want to do the right thing, but it is sometimes difficult to keep up with the changing compliance requirements in various jurisdictions as well as the timelines to meeting these responsibilities.
It is important to create a process and compliance calendar, which are revisited periodically as rules change.
Implementing Tools for Adequate Compliance
Once the scale of the business reaches certain volumes, it may be beneficial to implement tools to automate the pieces of the tax compliance effort. The selection of the tools, implementation on the company’s systems is a coordinated effort between finance and IT. It also requires some training to the personnel who will be operating the system.
Tax Return Preparation Process
The provider selected to prepare the tax return will require information to be provided (often referred to as the “PBC request”). The information to be gathered may require taking certain positions and may require additional documentation supporting such filing positions. Certain portion of the information required will need to be prepared by other contributors in the organization – e.g., equity management, payroll, revenue accounting, FP&A and more. Coordination of the effort to put the PBC together timely is key to a successful and efficient filing, so that less time is required from the provider and hence reduces the fees of compliance over time.