42 nd Annual Insurance Tax Conference Tax Technology

42 nd Annual Insurance Tax Conference Tax Technology Operational Trends and Opportunities

Trends in Tax Technology Transparency e. Governments, transparency, and disruptive competitive service models likely to make a significant impact. Emerging technologies for tax may include artificial intelligence, blockchain and real time big-data analytics. Big IT projects improve by leveraging experiences from the Tax Enablement Platform. Rapid Solution Delivery Macro pressures (in particular cost reduction), project fatigue, plus newly available technologies drive demand for strategic solutions that realize value faster and at reduced cost. Two rapid, high impact, lower cost solutions emerge; robotic process automation and a tax enablement platform. ow Tomorr Today Tax Transformation Various transformational and Big IT projects, including tax data warehouses bring high cost and effort yet varying levels of success Today’s discussion 2000‘s Financial Statement Controls Financial statement controls and zerotolerance for non-compliance created an environment whereby tax provision and compliance applications became the primary technology focus of most tax departments. 1990‘s ERP and Shared Services ERP and shared services fuelled the emergence and growth of centralised finance and accounting, HR and procurement. Tax often not included in ERP initiatives. 42 nd Annual Insurance Tax Conference

Rapid Solution Delivery Vs Historic Transformation Approach Attributes ► High investment threshold ► End-to-end thinking ► Significant IT expertise ► Inertia to change Time Rapid Solution Delivery RPA and TEP Attributes ► Low investment threshold ► Solutions focused, within a strategic vision ► Lower IT expertise ► Nimble, refine plan over time for emerging needs ► Faster value realization Time 42 nd Annual Insurance Tax Conference

How companies typically manage gaps in their tax technology Customized rd 3 party product 3 rd party product + + Ad-hoc workarounds Formal custom tools Custom built tools 3 rd party system functionality Tax’s requirements 3 rd party product only Functionality gap ► Processes and outputs are modified to align with system functionality and limitations ► Vendor customizes the system to suit Tax’s needs ► Can lead to issues with future versions releases, resulting in additional maintenance and loss of new functionality ► System’s ► Tools ► Lack ► Tools ► Customization functional gaps are supplemented by adhoc workarounds such as uncontrolled worksheets of approach, sophistication and skillset for workarounds can result in poor designs functional gaps are supplemented by formally built custom configured tools - Power. Apps are built using a robust development methodology are custom built when critical functionality is not available / too expensive in 3 rd party products can include platform configuration (e. g. Share. Point) or complete ground-up development led builds 42 nd Annual Insurance Tax Conference

Rapid Solution Delivery – Tax Enablement Platform 42 nd Annual Insurance Tax Conference

Background The smartphone analogy Highly leverageable platform • • • Built on a technology framework that has a very large community of vendors building apps and connection points into their products Apps can leverage core functionality Apps can utilize the same data sources (e. g. , contacts, photo library) Over 1, 000 apps • • • Productivity Navigation Social networking Music and video Business and finance, etc. 42 nd Annual Insurance Tax Conference

FSO Tax Power. Platform The tax function’s smartphone ► Core functionality ► Document management ► Workflow ► Reporting ► Search ► Highly leverageable platform ► Built on a technology framework (Share. Point, One. Source) ► Integrates with other vendor technologies ► Additional apps take advantage of core functionality ► Apps can utilize the same data sources (e. g. , entity listing, accounts, financial data) ► Apps can talk to each other (e. g. , planning memos into compliance process) ► Highly modular ► Document management ► Compliance Status Tracker (i. e. , workflow) ► Issue Tracker ► Legal Entity Tracker ► Reports/Search 12: 38 K-1 Compliance Operations Tax Accounting Tax Policies TP State Appnt Transfer Pricing FIN 48 Entities Capital Calc Tax Accounting Research Planning Audit Manager Collaborate Training Operations Support Tax News Tax Alerts Issues Documents Workflow Reports Search 42 nd Annual Insurance Tax Conference

FSO Tax Power. Platform The tax department’s smartphone ACKA Inc. 12: 38 K-1 Compliance Operations State Appnt Tax Accounting Tax Policies Transfer Pricing FIN 48 Entities Capital Calc Tax Accounting Research Planning Audit Manager Collaborate Training Operations Support Tax News Tax Alerts Issues Reports Search TP Document s Workflow 42 nd Annual Insurance Tax Conference

EY’s Tax Operations Portal – Example Tax Department Apps Documents Status Tracker / Workflow Issue Tracker / Open Items Log Tax Alerts App Reports App News App 42 nd Annual Insurance Tax Conference

This is Not Another ‘Tax Portal’ A typical Tax Portal is built for the mass market. This requires locking down and restricting powerful functionality so that Share. Point can be commoditized and productized. 42 nd Annual Insurance Tax Conference

Typical Tax Portal A Productized Approach to Share. Point Line of Business Requests Portal Documents Workflow Search Links Operate Tax Systems Manual Data Management Finance and Upstream Systems Content & Service Providers 42 nd Annual Insurance Tax Conference

Tax Enablement Platform High-level Architecture 42 nd Annual Insurance Tax Conference

Rapid Solution Delivery – Robotic Process Automation 42 nd Annual Insurance Tax Conference

Rapid Solution Delivery Robotic Process Automation 42 nd Annual Insurance Tax Conference

Process characteristics to consider for tax 42 nd Annual Insurance Tax Conference

Potential automation hotspots for insurance tax Common areas where bots help to drive value 42 nd Annual Insurance Tax Conference

Rapid Solution Delivery – Power. Apps 42 nd Annual Insurance Tax Conference

Power. Apps Benefits 42 nd Annual Insurance Tax Conference

Example Power. App technology layout Tax workpapers 42 nd Annual Insurance Tax Conference