As the scope of the taxation regime expands, more and more businesses are finding that Tax compliance can be complex and cost of non-compliance too high to bear. India has witnessed a number of new tax initiatives, often leaving assesses inadequately geared up to effectively manage these compliance requirements.
The deployment of Enterprise Resource Planning (ERP) or automated accounting systems has generally not been conducive to compliance with tax laws. Most companies have ERP applications that are typically designed to meet global requirements but not tailored to meet the needs of the Indian taxes departments. This results in almost all companies deploying disparate manual processes/ offline systems for compiling data for complying with their statutory obligations. This results not only in increased effort and costs but decreased efficiencies and diminishing returns on investment, without adequately managing non-compliance risks.
With the added cost of likely penalties and interest, such liabilities may have serious financial consequences for businesses.
At BMS, we maintain that tax compliances commence with capturing tax positions, capturing all data points relevant to tax compliance, maintenance of underlying accounting records, payment of taxes, and ends with filing of returns and audit preparedness. Our services are woven around proprietary software and bring to clients the value proposition of applying their tax positions to every transaction.
Our compliance review process is designed to evaluate your tax processes and systems in order to provide you with an assessment of the current state of compliance gaps; provide recommendations for improving data capture in your systems to ensure compliance; and determine the appropriate course of action to effect improvements, which will raise the value of your tax department while reducing your company’s exposure.
In today's business environment, increased tax process efficiency and effectiveness can significantly add value to an organization's bottom line, and keep it compliant with increased regulatory requirements. As tax resources in an organization keep up with day-to-day operations, it can get difficult to identify potential areas of improvement within the tax function.
BMS Tax Compliance Process review provides a high-level analysis and evaluation of our client's overall tax processes, including the remittance of tax, allocation of tax and technology resources, and management of tax information. The review provides a detailed view on what is required to effectively manage and locate information for audits, improve workflow management, better comply with regulatory requirements and reconcile tax financial data.
The compliance process review helps you in assessing:
- Adequacy of the existing compliance processes in terms of information capture, report generation and data retention for the purpose of meeting the identified compliance obligations;
- Adequacy and on-time availability of relevant data and reports for tax planning and decision making by the Finance & Tax team;
- Identification of any improvements, enhancements or modifications required in the existing processes and systems to effectively meet the statutory compliance requirements;
Proposed redressal of inadequacy, if any, in the information systems and processes of the Company and various alternatives available to meet the requirements with possible recommendations; |
