The Group Tax Function is responsible for tax compliance and reporting and for providing tax advice on business transactions, such as acquisitions and disposals.
Group Tax is usually responsible for preparing the tax provision and disclosure information for inclusion in financial reports. In some organisations Group Tax is only responsible for computing the current tax liability and Group Finance is responsible for preparing deferred tax balances and disclosure in the financial reports.
Common Issues and Weaknesses
The Group Tax Function is often overworked and under resourced to handle the complex tax reporting and compliance needs of the group. This situation is being exacerbated by the increasing complexity of tax and financial reporting requirements (including tax consolidation, IFRS, BAS and Sarbanes-Oxley), constrained operating budgets and a lack of skilled resources in the marketplace.
The strain on Group Tax resources to handle compliance demands often limits their ability to add value to the organisation by providing proactive advice on tax transactions and structuring, increasing reliance and expenditure on external tax advisers. Moreover, tax compliance risk is increased as a result of tax resources spending too much time on detailed preparation work rather than high level review.
How LSS Can Help
LSS can perform a strategic review of the current tax systems, processes and resourcing and provide recommendations for streamlining and controlling your tax function.
If you are planning to introduce new technology or enhance existing systems, contact LSS for independent professional advice on selecting, designing and implementing the right tax system for your needs.