International Tax Review (ITR) has named Deloitte the "Americas Tax Innovator of the Year" and "Americas Tax Compliance & Reporting Firm of the Year" for its impact in delivering innovative solutions on large, complex client projects completed in North, South and Central America.
"Innovation is a top priority for our tax practice. We are doubling our investment in innovation over the next three years and deepening our commitment, anticipating the next generation of solutions in a dynamic global landscape," said Carl Allegretti, chairman and chief executive officer, Deloitte Tax LLP.
Deloitte invests in and leverages automation, compliance and reporting, data analytics, and cognitive solutions in the following ways when providing tax services to its clients:
- Dynamic Reporting Customization for iPACS. Deloitte's Internet-based Process and Compliance System (iPACS) gathers, aggregates, manages and computes data for tax compliance and reporting, with an emphasis on the taxation of partnerships and their investments. The Dynamic Reporting tool is an overlay that enables users to customize calculations and reports, decreasing time, inconsistencies, and risk of errors while providing increased detail and flexibility. By using iPACS with Dynamic Reporting in the tax estimate process, Deloitte saved a global investment management client weeks of staff time, reduced the risk of error, and provided a level of detail not achievable through the former spreadsheet-based process.
- Global Information Reporting Platform. Deloitte's reporting platform for the U.S. Foreign Account Tax Compliance Act (FATCA), the UK, Crown Dependencies and Overseas Territories (UK CDOT), and the Organisation for Economic Co-operation and Development's (OECD's) Common Reporting Standard has significantly reduced client costs and staffing needs by eliminating manual data processing to streamline global reporting needs. Deloitte's proprietary Global Information Reporting Middleware helps manage the vast amount of information required to be disclosed through these regulations. The middleware provides a review tool, the ability to scale or expand, centralized data aggregation, data validation for accuracy and quality, and minimized manual data handling and reformatting. It also leverages data used for both K-1 compliance and FATCA reporting purposes to minimize duplicative processes. One organization's use of the technology reduced its average data-to-filing turnaround time from months to a matter of days for more than 2,500 foreign filings – representing over 45,000 reportable accounts.
- Business Travel Analytics. Deloitte enables organizations to efficiently identify, track and monitor domestic and global business travel of their employees so they are in compliance with income tax reporting, withholding requirements and work authorizations for their business travelers. Using data analytics and a sophisticated tax engine, Deloitte helps clients address business traveler compliance and gain strategic oversight by harnessing volumes of data that exist on a multitude of an organization's systems. Organizations are then able to make informed decisions and create policies to control costs, foster employee satisfaction and manage risk. In one use, Deloitte's approach analyzed 21,000 unique international and US domestic travelers on 350,000 trips, mitigating significant risk for the client.
- The Deloitte Document Review Platform. Through the use of the Deloitte Document Review Platform, Deloitte helps taxpayers substantiate R&D credits that are often challenged by the IRS due to a lack of sufficient substantiation. Using cognitive technologies to accelerate data extraction and analysis, complex client contracts can be reviewed more efficiently to determine if certain expenses can be included in the R&D tax credit computation. The Deloitte Document Review Platform has been "taught" to extract the critical provisions listed in contracts that determine entitlement to tax credits, validate key provisions, and identify whether the contract covers activities outside of the U.S. The client benefits from work being delivered faster, more accurately and at lower cost, while also providing the opportunity to broaden the scope of the analysis and focus on insights.
- Indirect Tax Compliance Process. Deloitte's indirect tax compliance processes are technology-enabled services that help companies achieve standardized and controlled compliance processes, more accurate and complete data, and improved reconciliation. When assisting US-based multinational companies with organizing their global value-added tax (VAT) compliance, Deloitte's proprietary engagement management tools allow for a global reporting dashboard on which analytics can be displayed for better decision making. The result for clients is an enhanced and more efficient reporting cycle, automated reports, and identification of continuous improvement activities.
The 11th annual Americas Tax Awards were given for innovative, complex and impactful transactions. The awards recognized work which broke new ground in the tax marketplace and was completed between June 2015 and June 2016.
About Deloitte Tax LLP
Deloitte Tax LLP helps clients lead the transformation of the tax function into a strategic partner that supports growth and sustained profitability within an organization. With deep experience across a broad range of services and industries, Deloitte Tax has more than 10,000 trusted advisors who combine their knowledge of tax technical resources and technology to uncover insights and smarter solutions for clients in today's complex global and regulatory environment. For more information visit www.deloitte.com/us/tax. Join us on Twitter @DeloitteTax.