BOGNOR REGIS, UK – 16 APRIL 2024 – Innovate Tax, a leading provider of automated business technology solutions for indirect tax, has launched a new offering for enterprise IT and tax teams called TaxMaster™. This unique service is designed to drive global compliance in the era of tax digitalisation.
TaxMaster™ is a comprehensive master data cleansing service that incorporates a three-stage process to scrutinise, cleanse and manage existing and newly captured tax data. It is the first service of its kind to go beyond simple data checks and reports, providing real value to businesses seeking to eliminate the risks that typically emerge from poor quality tax data.
Andrew Bohnet, Founder and Managing Director at Innovate Tax, explains the significance of TaxMaster™: “Having spent more than 10 years extolling the virtues of comprehensive, accurate and complete master data, we are delighted to be able to go further than ever before in helping our clients to not only understand how data underpins every aspect of managing tax, but also to actively support and power their route to greater visibility, understanding and cleansing of that data.”
TaxMaster™ is a disruptive response to traditional API-based services and is the industry’s first truly end-to-end solution. It provides a governance and risk management audit tool, automated direct email outreach campaign facility, and technology-driven data appending services specifically for tax data.
In recent years, there has been a sharp shift towards accountability in data integrity for businesses and tax teams. This is directly attributable to the emergence of digital initiatives such as the EU’s VAT in the Digital Age (ViDA) proposals, as well as the rapidly increasing number of global e-invoicing mandates. As a result, many businesses continue to face struggles to adapt tax compliance processes yet are still expected to demonstrate conformance and adherence to the regulatory changes.
One of the key focuses for modern tax teams in achieving compliance is the accuracy and validity of their Tax Registration Numbers (TRNs). TRNs are an essential inclusion in compliant e-invoices and a legal requirement in many tax jurisdictions around the world. However, prior to the launch of TaxMaster™, global businesses commonly relied on manual processes to validate and verify TRNs, sometimes supported by isolated tools and workarounds.
Andrew further explains the importance of accurate TRNs: “Most tax departments barely have the time to prepare and file their tax returns, let alone the resources to find and fill the gaps in missing or invalid TRNs. Simply finding missing TRNs is like filling a pothole in the road with sand. Every time it rains, you have to redo the entire process again. Certainly, TaxMaster™ will fill that pothole, but it also provides the means by which to keep the ground in check – ensuring there will be no more nasty tripping hazards.”
The technology-enabled service leverages existing products and solutions from Innovate Tax’s suite of tax technology tools, including the award-winning LimeLyte® Entity Manager. These are complemented by a package of automated outreach campaigns overseen by experienced tax technologists to achieve data goals as well as providing additional insights, reports and multi-point communications to appraise and append data gaps.
The TaxMaster™ journey begins with client data being processed in LimeLyte® Entity Manager to automatically validate and/or verify customer and/or supplier tax details. Erroneous or missing data is identified before an automated email outreach campaign requests the client’s contacts to update or confirm their company information via a secure portal. Finally, a multi-channel research programme – utilising a variety of sources, including Innovate Tax’s AI enhanced search process – is conducted.
Upon completion, TaxMaster™ users will benefit from enhanced customer and/or supplier master data, with previous gaps filled and errors flagged and fixed. The resulting data set – defined by its improved accuracy and completeness – enables businesses to enjoy a robust compliance position with regulations and requirements set by tax authorities around the world without the need to employ valuable internal resources to the challenge.
Additionally, TaxMaster™ addresses any potential ‘burden of proof’ requests that businesses may receive as part of audits from tax authorities (related to DAC7) with complete validation/verification audit records (including confirmation codes), data integrity reports, and by providing full evidence of intent to identify and rectify problematic data.
Andrew highlights the impact of the digitalisation of tax on businesses: “As the digitalisation of tax continues apace – including the mandating of e-invoicing in dozens of jurisdictions over the next five years – businesses can no longer afford to look the other way when it comes to managing and mastering their data. Indeed, most global e-invoicing legislation states that e-invoices must include valid TRNs and other important company information. This will place unprecedented pressure on tax professionals to ensure TRNs and other data are accurate and complete if they are to ensure compliance.”
TaxMaster™ has been developed and extensively tested by Innovate Tax over the last 24 months prior
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.