Traditionally, many organisations devote valuable resources to manually reviewing transactional data, which forms the basis of their tax compliance workpapers.

Tax personnel use varying methods to perform such reviews and typically, this line-by-line analysis involves the use of heavily customised and complex Excel spreadsheets, random sampling, and application of high materiality thresholds.

Given the volume of work required to prepare and validate tax returns, the ability to review and gain comfort over the veracity and integrity of the underlying transaction data is often limited by time and resource capacity constraints.

Today, tax functions are increasingly seeking ways to automate their recurring tax return review processes and free up valuable resources to focus on business strategy and key value-adding tasks.

How we can help

KPMG Income Tax Classifier automates the manual task of line-by-line reviews of General Ledger (“GL”) transactions, purchase orders and invoice text and can support the classification of transaction items into Capital vs Non-Capital, Deductible vs Non-Deductible, Assessable vs Non-Assessable, Incurred vs Not Incurred, Derived vs Not Derived as well as other classifications such as Fringe Benefits Tax. This enables your tax team to accurately and efficiently create tax-sensitised GL accounts to map into the tax calculations.

For more information, read our Income Tax Classifier factsheet (PDF 303KB).