This is a newsletter from
J.D. Choi of
Tax Technologies, Inc. to tax
professionals whose interests are improving the tax management processes.
Table of Contents
- Corporate Information Gateway
- Tax Process Mapping Conference
1. Corporate Information Gateway »
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Imagine the world where anyone can work anywhere, anytime and share information across everyone instantly.
It is no more an imagination. We have created the Corporate Information Gateway for tax people. Using this
application, any user can access to financial and non-financial information anywhere and anytime.
This application is the first of its kind in that it can greatly reduce the compliance cycle time and enable
sharing of information between compliance group and planning group. It will greatly reduce the compliance cycle
time by eliminating need for data collection, database replication, data reconciliation and by reducing
reporting error. Also because it is a true web based tax application, you can work anywhere, anytime and
share any information with anyone through your internet connection. Also, this application can be used in
conjunction with any tax application, thereby eliminating dependency to a tax application. This application
is truly a web-based tax data warehouse.
The web application technology is very new and there were a lot of technical difficulties. However, we
have perfected the technical stuff and created an operating application that proves all dimensions of web
based application technology can work for tax departments. We believe this is the way tax departments will
operate in the future. Best of all, based on our approach, it can be very quickly implemented and adopted
to existing intranet environment.
2. Tax Process Mapping Conference »
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Data Collection Packages
Not all companies are ready to implement high-tech web based solutions. Thus, we have developed foreign
tax data collection packages for CFCs (Form 5471), non-controlled foreign corporations (Form 5471), foreign
branches (Form 1118) and controlled foreign partnerships (Form 8865).
During the month of March, the Tax Process Mapping Conference was held in Orlando, Florida. We have participated
in the conference and gave away the tax data collection package for CFCs, non-controlled foreign corporations
and foreign branches. We have decided not to give away the tax data collection package for controlled foreign
partnership.
If you need a data collection package that can be quickly implemented in your company, you may send an e-mail
to
Choi@TaxTechnologies.com requesting for a free copy of the tax data collection package.
SMALL PRODUCTS.
Two year Financial Comparison
We have produced an Excel based application that produces two-year comparative financial statements based on
the trial balances in client's tax data collection packages. This application creates legal entity level summary
as well as business unit level detail financial comparison for two years. This application can also generate
comparative financial from general ledger download from any ERP system.
Since most of the E&P adjustments are based on the two-year comparison of balance sheet accounts, this application
was very useful in producing E&P adjustments. Further, it allowed us to perform quick test for Rev. Proc. 92-70
so that we can screen all the dormant companies in the beginning of the compliance process, thereby, reducing
compliance cycle time.
Further, for the companies that compute expense apportionment percentages based on business unit performance
rather than legal entity performance, this application can be particularly useful since it creates financial statements
for multiple business units within legal entity or single business unit across multiple legal entities. We expect
that we will expand this application in the future and produce automatic E&P adjustments, reserve analysis, retained
earnings analysis, apportionment percentage calculations and other financial analysis.
Entity information directory
We also produced an entity information directory. This simple application is a search engine for an entity or
group of entities. Although very simple in its technology, this application was very helpful when you are dealing
with large number of entities. For example, if you know part of entity name and need to find the entity number
or other entity information such as business group or administrative contacts, you may enter portion of the entity
name and be able to find the entity number and all other information. We initially created this application in
Excel. After creating this application, we found it so useful, we have migrated it into our web application.
Tax Process Mapping Conference:
During the week of February 28, Tax Process Mapping conference was held in Orlando. This was sponsored by World
Research Group. The conference was focused on the subject of tax department reengineering. I was very impressed
by the wealth of knowledge shared during the conference by the presenters as well as the participants. The presenters
included tax directors managers from corporate tax departments (General Motors, Chevron, Lucent Technologies,
Intel, RTM and BellSouth) as well as from service providers (KPMG, Taxware International, Inc. and Enterprise
Tax Solutions, Inc.).
I was particularly impressed by the product demonstration by General Motors. They have created a tool that
graphically presents intercompany transactions. I was impressed in its implementations. I found that this application
can be very useful for all multinational corporations that are involved in large scale intercompany transactions.
I also thought that it can be easily extended to include all 482 analysis. The project was led by James Ramsey
(Senior Tax Counsel) and his associates.
I was also impressed by the presentation by Tina McCormick of Enterprise Tax Solutions, Inc. She had practical
tips that would help streamline the tax processes, such as, proper use of staff with differing level of experience,
use of internet and creation of tax data warehouse. She also presented very practical way to meet tax data
retention requirements. In particular, Tina can be very helpful with data retention tool developed for SAP.
For practical advice, you can contact Tina McCormick at TinaMcCormick@etaxsolutions.com.
I would recommend that tax directors and IT people to attend the conference held by World Research Group.
Next conference on reengineering is scheduled to be held on May 22 through 24 in Chicago.
CLIENT SERVICE
While we were working on all these products, we also worked on client matters. We supported ITMS/FTMS
client to assist with their Form 5471 compliance and related calculations. During the engagement, we have
figured out a way to create planning database from ITMS/FTMS database. We have created a planning databases
in the past using ODBC compliant databases. However, we have not anticipated that we would create the same
with non-ODBC compliant database such as ITMS/FTMS. But, to our surprise, we proved ourselves wrong.
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Regards,
J.D. Choi
CEO, Tax Technologies, Inc.
201-387-9451
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