XBRL For Tax Compliance 9th International XBRL Conference Wednesday, May 12, 2004 Special Interest Group Day XBRL for Preparers – Accountants, Corporates & Small-Medium Enterprises (SMEs) Eric E Cohen, XBRL Global Technical Leader, PricewaterhouseCoopers

Agenda In this session you will learn about: Steps tax regulators are already taking to beg, ask or demand standardized data and the possible effects on you How XBRL, and particularly XBRL GL, the Journal Taxonomy, can revolutionize tax planning, preparation and filing XBRL plans of leading tax regulators around the world.

Tax Regulators and Standards Individual jurisdictions and regulators Global efforts OECD Tax XML Designs Tax-specific solutions Form parallel Standard Audit File Standard Tax File

XBRL and XBRL GL Revolutionize Tax Facilitate process improvement Planning Preparation Filing Assisting all parties Companies Software providers Tax preparers Regulators

Why are Tax Authorities Looking at XBRL? EFiling, eGovernment and other efforts Representing current eFiling in friendlier face Financial statements and information Same payload useful for many purposes, comparable Note: different jurisdictions and the “books” Universal audit trail From transactions through the business reporting supply chain Other business information XBRL: Summarized, aggregated, filtered, (sorted) XBRL GL: Underlying detail

Tax Regulators and XBRL Australia Canada Germany Netherlands Japan UK and others

Tax: Thinking Outside the Boxes TAX FORM FINANCIAL STATEMENT TAX INSTRUCTIONS Operational Data Corporate Data feeds direct access or extracts Paper Support

XBRL GL: One Framework One format Optimized for business reporting information Attributes of business reporting information Needs of business reporting information Lowering preparation/compliance burden Smoother collection of data of all kinds Reduction of things published to reconcile and track More common adoption by software developers Web Services

XBRL GL Fills the GAPS between GAAPS BUSINESS Investors Aggregators Regulators Creditors Lenders Tax Website Transaction Creation ERP G/L Packages CRM Orders A/P Delivery Customers A/R 2-way Suppliers One way XBRL BUSINESS REPORTING Detail to summary Intra system XBRL GL Journal Taxonomy Detail Together they take us from transaction XML to the end user of the data. Extends reporting to data capture at the accounting recognition stage. Note – it does more than “accounting” – anything that can be classified and recorded, like performance metrics, can be represented. Accounting recognition/ classification (e-)Business X12, UN/CEFACT Forum, UBL, HR-XML, ACORD, MISMO, and other XML INITIATIVES

XBRL GL and Taxation Tracking tax-specific accounts Allowing tax specific journal entries Mapping to tax taxonomy elements Document details for Tax/VAT Inventory details and much more!

Demonstrations The future of tax may be as simple as this …

For more information Eric E. Cohen eric.e.cohen@us.pwc.com +1-585-271-4070