how gsk group tax drove department process/data ... · kpmg’s global compliance &...

GSK and KPMG – How GSK Group tax drove

department process/data efficiencies by embedding

leading practices, utilising OWM and DataFlow

Speakers

2

Amar Thakrar

Head of Tax Technology,

Compliance & Operations

GSK PLC

Joe Habak

Managing Director,

Tax Transformation

KPMG LLP (US)

Patricia Pinto Rocha

Manager

Compliance & Transformation

KPMG LLP (UK)

© 2018 Thomson Reuters/Tax & Accounting

Objective of Presentation

© 2018 Thomson Reuters/Tax & Accounting3

Discussion on enhanced tax department processes. Find out how

KPMG’s Global Compliance & Transformation team (GCT)

worked with GSK to design and implement a holistic tax data

management and process improvement solution for their global

tax compliance processes, using OWM and DataFlow.

• Drive performance in a managed global service

outsourcing contract.

• Create stakeholder confidence in compliance processes.

• Create increases in efficiencies and effectiveness through a

more robust and central/standardised platform.

• Increase controls and reduce risk.

Agenda


The GSK Compliance Management Journey

KPMG – Holistic Tax Transformation using

OWM/DataFlow

Details of OWM/DataFlow Project with GSK

Future State – Benefits of OWM/DataFlow Project

The GSK Compliance Management Journey


We are a science-led global healthcare company


99,500

employees

Over 400

entities

Customers

in 190

countries

Our goal is to be one of the world’s

most innovative best performing and

trusted healthcare companies.

Group

£30.2bn+8% AER,

+3% CER

Pharma

£17.3bn+7% AER,

+3% CER

Consumer

£7.8bn+8% AER,

+2% CER

Vaccines

£5.2bn+12% AER,

+6% CER

Where & how did we start?


TP DocCIT

Returns

GSK

Transfer

Pricing

Processes

All other

local filings

Tax Audit

Support

CIT Data &

TP Doc

Gathering

Statutory

Accounts

Indirect Tax

Returns

Global compliance was partially done in-house and partially by KPMG.

OWM rules-based workflows were being used by GSK in order to track the global compliance

obligations (including due dates), in combination with a KPMG tool.

• Risk Questionnaire being managed by KPMG tool.

Documents were being shared by email between GSK and KPMG.

• Internally, documents were also stored on multiple share drives across the globe, causing issues

with access and non-standardized usage/management.

Limited KPI management was being performed through Excel spreadsheets.

• Lack of transparency into global compliance status.

GSK: Prior State


Quarterly Risk Reporting


Global Tax

Risk

Management

Audit & Risk

Committee

Judgement

Report

New engagement in 2017, for KPMG to take on GSK’s global direct tax compliance preparation in a

managed services environment.

• Also, KPMG to take on all statutory compliance across 20 jurisdictions.

This presented a need for a central and standardised platform through which GSK and KPMG could

track global compliance/statutory obligations and their statuses, in one single place (accessible by

both parties).

• GSK needed a tool in which they could ensure global obligations were submitted on time, etc.,

allowing for GSK to track agreed KPIs.

Collected information and documentation needed to be captured in a centralised database.

Collecting and then consolidating the data from the risk questionnaire was a highly manual process

and lack of ability to perform analysis and review on the data.

GSK: Business Driver/Challenge for an Improved Technology Solution


KPMG: Holistic Tax Transformation using OWM

and DataFlow


KPMG: Holistic OWM/Dataflow View


• KPMG’s holistic approach to OWM/DataFlow design

connects all tax data sources, processes, and people

into a globally aligned, centralized, standardized, and

integrated platform.

• KPMG will design OWM/DataFlow to satisfy our clients’

big picture compliance and reporting solution and then

implement it in a manageable and scalable/phased

manner, helping ensure that all the pieces will fit cohesively

and deliver value both now and in the future.

OWM/DF

platform

WorkFlow

FileRoom

Calendar

Entity Mgmt

Reporting

Tracking

Integration to

downstream

Tax SystemsReview

and

Analysis

Standardized

Data

Collection

Third-Party

Providers

Protective

Stakeholders

Source: KPMG LLP

Some or all of the services described herein are not permissible for KPMG audit clients and their affiliates or related entities.

OWM – A Tax Process and Data Management Solution


• Automated workflow

system

• Standardized electronic

binder

• Management and

monitoring of core tax

projects/work

• Due date tracking

• Global content

• Notifications and

reminders

• Reporting

• Organizing and managing

various tax documents

• Advanced search

capabilities

• Access control and

version management for

each document

• Secure data collection

using familiar user

interface (Excel)

• Standardization of

workpapers

• Integration with reporting

and compliance tools

• Centralized database of

entity information

• Global solution

• Capture detailed

information

• Control

• Chart function

Entity Manager CalendarWorkFlowFileRoomDataFlow

Configurable Web-based platform (hosted by Thomson Reuters), with fully integrated modules

that include:

1. Utilise OWM as a central Web-based collaborative platform, that standardizes all tax processes, due date

management, legal entity information management, document management/archive and overall tax data

management, in a centralized database/platform accessible across ONESOURCE applications, with real-time

tracking and reporting

2. Consolidate and strengthen controls around your Excel workpapers/tax packages and processes by

converting them into standardized, secure, and dynamic Web-based DataFlow Excel tax

workpapers/packages, with all data managed/captured in a central data repository (within OWM); embed

DataFlow packages within OWM workflows to further streamline and standardize data

management processes

3. Share a common set of tax data across the tax life cycle, by utilizing DataFlow and existing

ONESOURCE integration (ONESOURCE Excel Add-In) for “ONESOURCE” of the truth. Data residing in

DataFlow repository should be utilized for global provision and compliance workpapers and

transferred into end tax source systems.

– Existing DIRECT integration with ONESOURCE Tax Provision (OTP), General Ledger Manager (GLM), etc.

– Third-party tax/finance source system integration capability.

OWM/DataFlow – KPMG’s Leading Practices Approach


Source: KPMG LLP


OWM – KPMG’s Holistic Approach


Third-party Tax

Systems & Data

Visualizations

OTP

Data Request

Templates

Extraction File

(Excel or CSV)

Analytical/Consol

Templates

Administration

Templates

Global DataFlow

Repository (in OWM)

Other data

(e.g., qualitative)

Finance/ERP/GL

Systems

GLM (central master

chart of accounts)

DA

TA

PR

OC

ES

S

OWM WorkFlow Manager

Events/Due

Dates

Work Flow

Tasks

Documents

DataFlow

WorkFlow

Checklists

Notes

Integrated

Tools and

Reporting

Source: KPMG LLP


KPMG is a Certified Implementer of ONESOURCE tax applications and tools.

• Our KPMG Global Compliance and Transformation (GCT) professionals are OWM and DataFlow

industry leaders and have undergone in-depth training and certification for OWM and DataFlow.

• We have the global experience and have developed leading practices in the full cycle

implementation of OWM and DataFlow, which covers the overall design, build/configuration, testing,

training, and rollout support of these systems.

• Combining our global tax technical, tax process, tax technology, and project management

knowledge, KPMG’s practice is able to provide our clients with an OWM and DataFlow solution that

helps create a next-generation leading global tax department that achieves optimal levels of

efficiency and productivity.

• Joe Habak/KPMG were presented with the Taxologist of the Year Award in 2017 in the Certified

Implementer Program (CIP) category in the US based Synergy conference for their global work

performed in OWM/Dataflow.

OWM – KPMG’s Leading Practices


Details of OWM/Dataflow project with GSK


Where did we end?

18

Indirect

Tax

Returns

Statutory

Accounts

Direct Tax

Returns

GSK

Transfer

Pricing

Processes

All other

local

filings

Tax Audit

Support

© 2018 Thomson Reuters/Tax & Accounting

How did KPMG and GSK partner to deliver something special?


Joint workshop sessions

to determine key

requirements

Creation of new standardised

compliance management

approach in OWM/DataFlow

(serial workflows), allowing real

time tracking/reporting/KPIs using

dashboard reports & data

visualization tool

Embedding of tax

calendar to drive

transparency

Comprehensive

document management

structure through the

FileRoom

Design a new risk

questionnaire package

in DataFlow

Real time compliance dashboards


What does 2019 look like?


Phase 2 – Look at 2017/18 project and related feedback,

refresh and optimise WorkFlow/DataFlow approach used to

gain maximum benefit for GSK and KPMG.

Deployment to all regions, followed by tailored training sessions

in OWM/DataFlow for global GSK resources (approx.

400 people).

GSK: Future State: Benefits of OWM/DataFlow Project


Qualitative Benefits of GSK’s Future State


1. Strong governance over large outsourcing contract with KPMG –

proving value

- Enhancing stakeholder confidence

2. Standardisation and consistency of the global compliance

process in a single platform

3. Transparency into each milestone status

4. Centralised Administration performed solely by two teams:

GSK and KPMG

5. Risk reduction and better definition of internal controls

6. Better management of global Data providers/foreign controllers

7. Full visibility and reporting (real time information & KPIs)

Quantitative Benefits of GSK’s Future State


Faster controls testing for audit evidence

More time spent on review and analysis of data (less time spent on

data collection)

Increased value driven from KPMG compliance contract from ‘real

time’ compliance monitoring

Avoidance of penalties through strong monitoring and governance

underpinned by OWM

Summary of Overall Benefits


With KPMG’s guidance and leadership, GSK’s transformed tax

environment has resulted in enhanced efficiency and productivity,

stronger internal controls & improved accuracy

The new leading practice tax function is centralised, standardised,

automated, and integrated across the tax/data life cycle, using

customized technology and related process redesign/improvement

With a scalable transformation methodology in place, next steps

include further improvement to GSK’s global compliance processes,

along with expansion to other tax and non-tax types/functions plus

the use of robotics to further automate the processes

THANK YOU


Some or all of the services described herein may not be permissible for KPMG audit clients

and their affiliates or related entities.

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.

*Views expressed in this session are the views of the Speakers only, and do not necessarily

represent the views or professional advice of KPMG LLP.

Disclaimer


This presentation is designed solely for the purpose of enhancing knowledge on tax

technology and resources. It is presented with the understanding that the publisher is not

engaged in rendering legal, accounting, or other professional service. If legal advice or other

expert assistance is required, the services of a competent professional person should

be sought.

© 2018 Thomson Reuters/Tax & Accounting.

Thomson Reuters
