Tax Compliance with Assisted Decision Making

Ensure your organization acts consistently and compliantly

Tax compliance is undeniably important for organizations of all sizes, and the consequences of non-compliance can be severe.  Complicating matters, especially for international organizations, is the length and complexity of tax law affecting almost all financial dealings.  For instance, the Value Added Tax in the EU has a multitude of sections with far-reaching implications.

Virtually every corporate exchange of funds is touched by tax law:

  •         Company to employee. Wages paid, benefits, gifts and entertainment.
  •         Customer to company. Goods and services sold to customers.
  •         Trading partner to company. Services, plus delivered and raw materials

On many levels, tax reporting can be confusing and difficult – especially when concerning unusual or ‘one-off’ transactions (ie. a special event or the purchase/sale of products). Deciding what regulations apply in each case is a major headache and time investment for organizations, and doing so correctly is critical.

There is, however, a way to simplify matters.

Fundamentally, all tax compliance decisions are governed by 3 factors:

  • The type of transaction. See above.
  • Its amount. Ranging from a few dollars in gifts to multi-million dollar mergers.
  • Where it took place. Variation from country to country, state to state, etc.

This input data determines what regulations are applicable and makes the correct path to tax compliance clear. The Signavio Decision Manager helps organizations turn convoluted regulation into traceable decision logic tables which can be easily read, understood and acted upon. Because these tables follow the standard of Decision Model & Notation (DMN) – a graphical language built by experts for maximum clarity – they are usable for anyone who needs them.

Organizations can then directly advise accounting personnel with the tax models they’ve built. They can also apply these models to a process application which computes the taxes and reports them to a Corporate ERP/tax reporting system.  With the Signavio Decision Manager, organizations have a powerful tool for distilling complex tax regulation into simple, actionable models.

To see for yourself how Signavio Decision Manager can simplify your company’s tax compliance, check out our YouTube video on the subject or contact us today.