Overview of Tax Reporting
Tax Reporting provides a total tax solution to calculate and analyze current and deferred tax at national and regional levels, while unifying your financial close and tax close processes. This application is designed to comply with the standards for accounting for income taxes under GAAP and IFRS.
In a multinational business, regional controllers calculate current and future tax according to local tax laws at the legal entity level. These expenses are then aggregated to national levels. Some jurisdictions may provide for tax filings at a combined level, requiring review and approval at an aggregate level. Tax Reporting provides the out-of-the-box forms, logic, provision packages, workflow, and analysis dashboards that will enable you to source, calculate, manage, and approve your tax provision. The application calculates your company’s global tax provision, effective tax rate, and deferred tax for tax provisioning purposes. You can also prepare CbCR reporting (Country by Country).
Tax Reporting encompasses all stages of your organization's tax provision process, including tax automation, data collection, tax provision calculation, return-to-accrual automation, and tax reporting and analysis. The application enables you to calculate the effective tax rate and cash tax for entities within your jurisdictions, and prepare accounting journals and accompanying financial statement disclosures.
You define sequential and logically grouped tasks for all tax preparation activities, such as reviewing permanent adjustments, temporary differences, and effective tax rates, as follows:
- Use the National Tax Provision package to:
- Use the dashboards to view current and prior year tax expenses for your entities, and view statutory and effective tax rates.
- Use entity specific provision packages to determine current and future tax expense and liability.
- Use the Statutory Effective Tax Rate analysis in a national or regional provision package to identify the effective rate of tax paid on your pre-tax profits.
- Use the Regional Provision package determine and analyze existing and deferred tax requirements for a particular US state, or province.
- Use Deferred Tax to view future expenses and liabilities. You can drill down on closing balance to access additional details including current year movement, and return to accrual adjustments.
- Use CbCR reporting to analyze your tax expense across jurisdictions, including factors such as return on equity, and revenue by employee.
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