Cloud-based 'Impact Analyzer' wrangles data to prepare companies for imminent FASB and OECD tax disclosures
New York, New York--(Newsfile Corp. - November 6, 2023) - KPMG LLP, the U.S. audit, tax, and advisory firm, is introducing a new generative AI-backed solution, the KPMG Tax Transparency Services - Impact Analyzer (Impact Analyzer), to help companies prepare and respond to new disclosure requirements and heightened transparency expectations from stakeholders.
Most recently, this dynamic was underscored by the Financial Accounting Standards Board (FASB), which approved a proposal for more comprehensive income tax disclosures for public companies. This rule builds on actions taken by the Organisation for Economic Co-operation and Development (OECD), which has implemented a global minimum tax that requires companies to disclose their tax, profit, and economic activity on a country-by-country basis.
The Impact Analyzer is part of the firm's proprietary KPMG Digital Gateway platform, which is being enhanced with a suite of generative AI solutions for Tax and ESG. Co-developed with Microsoft, the solution represents a novel approach for companies to meet new public tax disclosure requirements by using Azure OpenAI Service to gather and analyze vast amounts of tax-related data from across the entire organization quickly and efficiently, before depicting the information on interactive and user-friendly dashboards.
With the Impact Analyzer, companies can begin to accurately convey their tax ESG narrative - one that demonstrates a complete picture of all material tax types across the organization. A recent survey of 500 C-suite leaders found that just 10% of executives are prepared to tell their total tax story publicly, citing the difficulty in gathering the necessary data from across all jurisdictions in which they operate. Today, the Impact Analyzer's automated data extraction and organizing capabilities make it possible for companies to parse through large volumes of data required for these disclosures, simplifying the compliance process and ultimately reducing the risk of reputational harm, taxpayer-authority disputes and public distrust.
To learn more about KPMG LLP Tax & ESG services, click here.
Quotes:
"Organizations should begin preparing now for mandatory tax transparency," said Greg Engel (@Greg_Engel_KPMG), Vice Chair - Tax at KPMG LLP. "With the generative AI capabilities of the Impact Analyzer, companies can easily gather and make sense of vast amounts of data from across their organization to glean a comprehensive picture of their tax narrative. From there, they can consider making value chain adjustments where necessary and prepare their story for public consumption."
"Tax is both a measure and a key driver of sustainability," said Brett Weaver, partner and ESG Tax Leader at KPMG LLP. "As mandatory tax disclosures impact more multinational enterprises, executives need to deploy a data-informed approach that aligns their tax strategy and their overall ESG strategy. Together with generative AI, the Impact Analyzer is a powerful tool that can power this data-informed approach."
About KPMG LLP
KPMG LLP is the U.S. firm of the KPMG global organization of independent professional services firms providing audit, tax and advisory services. The KPMG global organization operates in 143 countries and territories and has more than 265,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
KPMG is widely recognized for being a great place to work and build a career. Our people share a sense of purpose in the work we do, and a strong commitment to community service, inclusion and diversity and eradicating childhood illiteracy. Learn more at www.kpmg.com/us.
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