A Vision enabled through Electronic Interface Standards

1
A Vision enabled through Electronic Interface
Standards Businesses and Tax Agencies, in concert
with other Agencies, working together to create,
use and exchange information that is useful,
useable and timely
Future world
Commerce
Current world
TaxInfoStats

• Part of Natural System
• Customised for different businesses
• Timeless
• Bottom Up

• Information supplied not part of natural system
• One solution fits all
• Cost of complying is increasing
• Duplicate information submitted to agencies

Work Collaborative to understand Business Accounti
ng practice
Translation Two worlds growing
together.Government aligning to the standards
adopted by businesses
Use interface standards to make agencies part of
businesses natural systems and accounting practice
2
A change of mindset enabled through Electronic
Interface Standards
Forms based reporting
Obligation based reporting

• An Egyptian tax receipt from the
• Ptolemaic period 320 to 32 BC.
• Tax agencies are historically and culturally
  fixated around a forms based approach to
  gathering information.
• Problems
• Less forms more complex to fill in
• More forms what form to use?

• Electronic interfaces provide the ability to
• dynamically obtain information based on a
• clients specific obligations rather than a one
• size fits all approach
• Advantages
• combines information normally collected
• across multiple forms

3
Electronic Interface Standards Tax XML

• OASIS is a not-for-profit, global consortium that
  drives the development, convergence and adoption
  of e-business standards
• Tax XML is an OASIS committee that is defining
  electronic standards for communicating tax
  information.
• Goal to reduce interaction costs and enable
  improved business models
• Membership Observers include
• Tax administrations of Australia, Canada,
  Germany, Hungary, Netherlands, UK and US
• IBM, Microsoft, SAP, KPMG, PwC
• Joining the initiative ensures that your country
  is able to influence and use the standards to
  best effect.   

4
OASIS Tax XML Standards model
Tax XML is trying to develop a standardised way
of communicating electronically with the taxation
community. Below is a model that represents
accounting and taxation standards.
International standards Broad agreement on
accounting standards eg Statements of financial
position and performance Example International
Accounting Standards (IAS) Tax XML are expanding
these standards to cover tax specific information
This is defined in XBRL (XBRL is an electronic
communication language)
National standards
This is not defined
Local standards Very localised, not agreed
specific to company/organisation eg statement
dates
Tax XML and XBRL are based on XML eXtensible
Markup Language, a key enabling technology