Checking on the health of compliance processes has never been more important. In today's business environment, increased tax process efficiency and effectiveness can 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. BMR Managed Services’ (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 enables the tax functions of our clients to understand what is needed to better manage and locate information for audits, improve workflow management, better comply with regulatory requirements, and reconcile tax and financial data.

This review is intended to assist the organization towards -

• 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 organization and various alternatives available to meet the requirements with possible recommendations
• Assistance in development of a business case for the recommended solution

BMS compliance process review methodology is structured into the following four phases:

Phase I - Assessment

During the assessment phase, BMS collects data that can be used to generate a profile of the tax environment in which the client operates. We may use any combination of the following information gathering techniques: questionnaires, informal interviews, client source-documents, and typical tax audit exposure areas.

As part of the assessment phase, we conduct interviews with key personnel involved in Procurement, Accounts Payable, Accounts Receivable, General/Financial Accounting, Information Systems, and Tax. In addition, as part of the assessment phase, we review the relative strengths and weaknesses of the tax recording and processing systems.

During this phase we also identify books and records that will be needed to complete the next phase.

We have found that at a minimum an assessment phase is needed to attain an understanding of the existing tax issues and compliance processes to better evaluate the scope of the overall project. This phase also enables BMS to make basic recommendations on the use tax compliance function of the client’s business.

Phase II - Design

The design phase consists of a review of the detailed information gathered in phase I which we then use to develop and analyze a variety of strategies. These strategies will support company plans for establishing tax compliance methodologies.

This phase requires a review of the various systems involved in the collection, payment, accrual and remittance of tax. BMS will review the current administration of tax function. Phase II includes evaluating personnel interviews along with books and records made available for research and planning. This helps us determine whether the information, made available to regulators, is reliable.

During this phase we set out guidelines for the scope of reports, matrixes and flowcharts needed for the two remaining phases.

Phase III - Implementation

Phase III consists of implementing the recommendations derived in phases I and II. Implementation includes focus on utilization of reports, matrixes and flowcharts.

Phase IV - Training

The final phase of the review involves training of the tax personnel. The information gathered in the previous phases will indicate the areas where training is critical. Training may include meetings with employees, group trainings and one on one instruction for certain key individuals.