Presented by:Presented by:

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Tax process and technologyElizabeth L’Hommedieu, Principal, WNT Banking Practice, KPMG LLPErika Bonner, Partner ‐ Federal Tax, KPMG LLPMark Price, National Tax Leader, Banking & Capital Markets, KPMG LLPWalter Doggett, Vice President Taxes, E*TtradeFinancial Corporation

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Disclaimer

The following information is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230. 

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

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Tax process and technologyBusiness transformation and its impact to tax departments

• Introduction to session • With you today

– Walter Doggett – Moderator– Liz L’Hommedieu – Erika Bonner – Mark Price 

• Process techniques and technology• Compliance tools• Lean Six Sigma• Integrated finance transformation• Panel Q&A

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Technology – Recent advancements and where we are 

headed

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Driving tax performanceKPMG’s Tax Intelligence Pyramid

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Driving tax performanceHow does it translate to technology?

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Compliance process improvement

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The sourcing continuumA function‐by‐function analysis

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Considerations for a sourcing visionSample sourcing decision criteria (“Filter Analysis”)

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Corporate complianceKey drivers in today’s compliance functions

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Continuous improvement with Lean Six Sigma

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What is Lean Six Sigma?

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Lean Six Sigma

Focus: Identify and eliminate activities that do not add value to the client

What is it? A standard process and set of skills used to help identify and eliminate

these “non-value-added” activities

An approach to consider:

Focus: Identify and eliminate defects and variability in your process

What is it? Process and set of tools used to identify and reduce variability and defects

As part of your tax function, consider a Lean Six Sigma process improvement type approach.A Lean Six Sigma process can help uncover technology efficiencies, process improvements, and opportunities to eliminate waste.

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Lean Six SigmaA process worth considering

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Where we are headed and what you shouldbe considering

• Utilization of ERP and other systems already in use at the company to serve tax initiatives:– Tax sensitization of data – chart of accounts, dimensions, legal hierarchy, etc.– Tax data marts for perms/temps, apportionment, controversy tracking (SAP, Oracle, Hyperion)– Document management, calendars and due dates, data collection, dashboards, analytics, process 

management (SharePoint, OneSource, CorpTax)– ERP for provision (Hyperion Tax Provision)– Portal (SAP, Oracle, SharePoint)

• Move towards integration of the Provision and Compliance process – Necessitates process change with enabling technology tools to support– Breakdown silos, expand team skills

• More interaction with finance and IT departments within the tax organization– Not only align but have an impact on the overall finance transformation– Set up processes and technology to improve both groups’ efficiency and effectiveness– IT educated to tax department needs – move to having IT individuals within the tax function

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Integrated finance transformation discussion at BTI?

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What is integrated finance transformation (IFT)?

• IFT is back‐office transformation in the following, but not exclusive, process areas:– Record to Report (recording of transaction (loan payment) through 

external reporting of same transaction (i.e., external financial reporting))

– Payroll (recruitment through retirement/separation of service)– Acquire to Retire (fixed asset life cycle)– Procure to Pay (acquisition of goods and services for internal usage)– Order to Cash (customer onboarding to product delivery/sales cycle)– Plan to Performance (budget cycle compared to actual results)

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Why consider tax as part of IFT projects?Keep more of what you save!

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Key tax drivers for IFT success

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Tax’s role in transformation projects

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What questions do you have?

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Thank you!