Tax Engine Support BV

Legal and tax assessment support

Tax Engine Support (TES) supports clients during vendor selection and contractual negotiations about delivery terms & conditions. Besides, TES performs quality review during 'User Acceptance Testing' (UAT), and TES assesses whether the add-on meets all the delivery terms & conditions agreed with the software vendor.

Some examples from practice

When a client has purchased an SAP add-on, such a product must meet to avoid non-tax compliance and significant penalties the tax requirements, and the add-on's functionality should fulfill all the contractually terms & conditions:

  1. For example, when a vendor promises a vendor-independent solution, the bankruptcy of the vendor should not result that the add-on no longer becomes operational. That would conflict with a company's IT and risk policies.  Review whether that objective is met.

  2. When various country modules are purchased, the update of one country module may never result that the other country modules will stop working. Review whether that objective is met.

  3. Review the tax processes during R&D of the software vendor to assess whether the add-on purchased is and could remain tax compliant. What are the signing off procedures and which tax experts are involved, and when?

  4. Review whether the user- and implementation documentation of the add-on is understandable, and complete.

  5. Etcetera 

EDP audit, IT-risk management and internal controls

TES advises multinationals on IT-risk management and internal controls. An EDP auditor leads TES. He formerly worked as a director at the Big4.

TES operates under Chinese Walls and independent from KG. That independence ensures that TES will always work without any conflicts so that you will receive the best possible support. You can, therefore, be assured that TES operates solely in your best interests.

Take aways 

Anticipate what users would want

We combine technical knowledge with industry understanding and knowhow of technologically advanced tools and methodologies available in the market or developed by ourselves.

What do we like to achieve

  • Focus on tax processes that could be improved
    • Manual process: same data requests are made by different stakeholders
  • As Is assessment
  • Anticipate future changes and the data needed
    • What are tax trends?
    • What is happening locally and what should be considered across jurisdictions where you operate?
    • Anticipate new stakeholders and their data needs or requests (internal and external)
  • Define scope and actions for short, mid and long term
  • Write business case for change
  • Realize sponsorship for implementation

‘As is’ assessment, actions and business case

  • What tax data is requested and by whom?
  • What tax process can be improved and what can be automated?
    • CIT, VAT, tax data warehouse
  • What is the Return on Investment?
    • Hard saving: process improvement
    • Meeting (new) tax requirement
  • What systems are in use: SAP, Oracle, etc
    • By which entities?
  • How many end-use computing tools (e.g. excel spreadsheet) do we have?
  • How do we avoid an ad-hoc solution?
    • Understand the bigger picture
    • Real problem and not the symptom

Risk and reward

Technology-related tax risk: understand and address the potential harms and benefits of (new) technology.

Technology tools & systems integration

Ascertaining proper IT support for ensuring efficient, timely and reliable reporting.

Change and project management

VAT should be considered in every aspect of the process, from concept through completion and beyond. Managing by design — looking at any process or transaction from end to end and factoring in all the requirements and controls essential to designing and optimizing a compliant VAT process.

Effective communication and teaming

We speak the language of the business and IT and no translation is needed.

Set up a project plan

  • Set up a project charter that will take effect preferable during feasibility but ultimately during design
  • Write a business case and problem statement
  • Define scope of the project
  • Define objectives and goals of the project
  • Involve stakeholders and define priorities
  • Set measurable milestones
  • Ensure that the right sponsors provide buy-in.
  • Identify (project) risks and how to manage them
  • Jointly validate and refine the project plan and develop a roadmap to success
  • Hold regular meeting to track progress of the various work streams