Setting Up XBRL projects in Tax Administrations Alex Fiteni CMA Fiteni International LLC 24/02/2019 13th XBRL International Conference

13th XBRL International Conference Agenda Introductions XBRL in Tax Administrations The Business Case Key Stakeholders & benefits The Framework Components Planning the Project Establishing a Communications Program Developing the Taxonomy Project Risks and Mitigations Q&A 24/02/2019 13th XBRL International Conference

XBRL Taxonomies – integrating reporting supply chains 24/02/2019 13th XBRL International Conference

XBRL In Tax Administrations Goals of a Standardized Business Reporting Project Reduce the overall administrative burden of the entire compliance cycle Improve the collection, accuracy and utility of the compliance reporting system The Business Case Improved accuracy and data quality Reduced duplicate information gathering Reduced interpretive nature of data (with a taxonomy) Increased compliance rate 24/02/2019 13th XBRL International Conference

13th XBRL International Conference Key Stakeholders 24/02/2019 13th XBRL International Conference

13th XBRL International Conference Framework Components 24/02/2019 13th XBRL International Conference

The Implementation Strategy Project methodology Define a Project Charter Assure funding is in place Get Senior management and political commitments early Best Practices Complete an environmental scan Obtain stakeholder buy in Determine Tax Agency or cross-agency scope Ensure software houses are involved in development Business representation is key to success Use an iterative approach rather than ‘Big Bang’ 24/02/2019 13th XBRL International Conference

Establishing a Communications Program A critical success factor is to keep all stakeholders informed of the status of the project: Craft consistent and clear messages Communicate with each stakeholder community regularly Provide a feedback process to validate messages Best Practices Communications program integral to project organization Consider a media professional Stay on message Make the benefits story often 24/02/2019 13th XBRL International Conference

13th XBRL International Conference Developing a Taxonomy Goals and objectives Scoping Development Documentation Taxonomy management tools Taxonomy maintenance Best Practices Keep it simple Make it iterative Use a collaborative approach 24/02/2019 13th XBRL International Conference

Project Funding – Direct and Indirect Direct Stakeholders Tax Agency Intermediaries Software Houses Taxpayers Indirect Beneficiaries Agencies participating in project (and their ‘customers’) Third party data analysts and distributors (where allowed) Funding Sources Government agencies’ budgets Processing Fees Reduction in taxes Indirect Benefits Reduced data entry costs Increased accuracy More timely receipt of information Better funds management 24/02/2019 13th XBRL International Conference

Project Risks and Mitigations (sample) Areas of Risk Stakeholder Impacts Risk Mitigation Timetable is set without reference to the scope, and resources available to fund the project. Stakeholders feel their needs are not being met within the time constraints Project fails due to lack of commitment Ensure that time, funding, and resource levels are realistic. Senior management commitment Stakeholders are reluctant to participate in the project due to a lack of senior management commitment The project falters or fails to gain traction amongst key stakeholders Ensure the business case is clearly communicated to senior management and they officially sign up to sponsor key phases Domain Expertise Stakeholders do not provide the right resources to the project at the right time Lack of the correct domain expertise at each stage of the project will delay or suspend the project until available Options should be explored to ensure domain expertise is made available as required in the project Insufficient incentives to ensure uptake by participating agencies Lead agency is left to either delay the project or fund the project alone Agency participation is lowered than expected Review incentives that will garner full support from all stakeholders Incentives to taxpayers is insufficient to ensure successful participation Taxpayers and/or intermediaries do not want to sign up for project Taxpayer participation is lower than expected Changing political environment may change key project assumptions Each stakeholder group may be required to modify their working assumptions for the project Project scope is subject to constant changes that delay or defer key deliverables Ensure political sponsorship from all parties is fully engaged in the project from inception Legislation is introduced at the last minute to accommodate political realities Stakeholders may be reluctant to uptake the project due to impending legislation Project is delayed until changes are incorporated Pre-validate changes against the taxonomy before final language is published. Include a formal process for managing changes in taxonomy and communications to stakeholders. 24/02/2019 13th XBRL International Conference

13th XBRL International Conference Contributors Jeff Smith, UK H.M. Revenue & Customs Adrian Lejins, Australian tax Office Max Cummock, New Zealand Inland Revenue Christine Beasley, Australian tax Office Terry Lutes, The M Group Eric Cohen, PricewaterhouseCoopers, LLP Marc vanHilvoorde, KPMG Alex Fiteni CMA, Fiteni International LLC 24/02/2019 13th XBRL International Conference

13th XBRL International Conference Contacts Alex Fiteni CMA President Fiteni International LLC Mobile: +1-650-799-5949 eFax: +1-603-590-2598 Office: +1-702-990-3869 Mailto:alex@fiteni.com http://www.fiteni.com 24/02/2019 13th XBRL International Conference

13th XBRL International Conference Alex Fiteni CMA Alex Fiteni is a professional accountant, accounting information systems designer, lecturer and author. Until 1985, Alex was an accountant in various industry, education and government sectors, completing his first career as CFO for a major non-governmental organization. He has been active in a number of compliance software development and ERP implementation projects since 1985, completing a career in business applications software product development as a Director of Development for Oracle Corporation in 2005. He has recently started a private practice in business and financial information management consulting. Alex has domain expertise in accounting and statutory compliance in ERP systems from gap analysis to implementation, integration, upgrade and migration. In recent projects in private practice, he has performed business and marketing plan reviews; sales and use tax compliance analysis; ERP COTS applications fit and gap analysis and configuration; business intelligence systems design; and advised on financial and business operational change management. Fiteni International LLC provides full service management consulting, specializing in business process re-engineering, change management, project management, corporate knowledge and business intelligence management, and software applications design and implementation. 24/02/2019 13th XBRL International Conference