The Future of Tax Reporting

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BEPS (Base Erosion and Profit Shifting) 2.0 refers to the next iteration of a plan by the Organization for Economic Co-operation and Development (OECD) to address tax avoidance by multinational companies.?

According to Bloomberg Tax:?

"Multinational enterprises are facing new and complex tax rules stemming from the OECD and G-20 countries’ BEPS 2.0 project—particularly the project’s Pillar Two 15% global minimum tax, which is set to apply to multinational groups with global revenue of more than €750 million ($829 million). Enforcing these rules will require unprecedented global cooperation between tax authorities, and implementation approaches likely will vary among jurisdictions adopting the rules, making compliance a challenge and creating the risk of controversy."

The absence of a definitive timeline notwithstanding, eventual compliance with BEPS 2.0 is inevitable. Accordingly, it’s not too soon to start considering the means by which to produce and submit the required financial and tax reports.?

Hint: It’s not Excel?

While Excel can be used for basic data management and reporting tasks, it’s inadequate for BEPS 2.0 reporting. Here’s why:?

1. Version Control. Because BEPS is complex and multi-faceted, Excel can’t manage the massive data streams in a systematic and organized manner. Moreover, with multiple users working on it globally, Excel doesn’t have a solid mechanism to manage comprehensive calculations, track changes in near real-time with multi-user accesses, and control security. PaPM helps you work on BEPS with global and local teams in a more organized and secure manner with its in-built process orchestration capabilities.?
2. Data Volume. With more than 250 data points identified by the OECD and countless more being discovered, Excel struggles to effectively manage, enrich, and analyze this information. To ease the transition to BEPS, maintain the requisite volumes of data, and efficiently adjust that data year on year, Excel is a good starter but reaches its limit very soon, which is exactly where a robust solution is needed.

Read more here: https://www.msg-global.com/blog-item/beps2-0-pillar-2-reporting