Toolkit - Indirect Tax Function Effectiveness

By Richard Cornelisse
To avoid assumptions and actually measure indirect tax performance perform:

- a VAT throughput calculation via annual report/10k,
- a statistical sampling and/or
- data analysis.

A toolkit should enable to assess and evaluate in an effective and efficient manner the effectiveness of a company's current control framework, document the 'as is' situation, provide a gap analysis and set of solutions to close gaps. A normative VAT Control Framework is used as a yardstick for comparison purposes and will indicate how the steps should be taken in an ideal world (gap analysis).
The deliverables should be supportive and in line with company's overall Sox objectives and in full scope a project has to deliver:

- Process Objective Matrix
- Final VAT Risk Universe
- Process flows
- Indirect tax risk & control matrix
- Preliminary improvement plan
- Final Tax Control Framework documentation
- Final Improvement plan and roll out timelines
- Documentation of company's Indirect Tax Strategic Plan

More insight about the 'specific areas of investigation and samples questions' can be found in attached PowerPoint presentation. This deck provide further insight of our work method and deliverables.

What should be in a toolkit:

- Indirect Tax Maturity Scan
- VAT Function Framework
- Process Objective Matrix
- Normative VAT Control Framework (Golden Standard)
- Questionnaires (preferable online) has to be tailored for selective audience (scalable, worldwide operations or for specific function only):
*To assess Strategy Risks
*To assess Financial Risks
*To assess Operational Risks
*To assess Compliance Risks

globalindirecttaxmanagement.com/table-of...n-effectiveness.html