KPMG Tax Fixed Asset Review Automator (KPMG Tax FAR Automator) has been designed to specifically alleviate an organisation’s pain points in managing the tax fixed assets process and to achieve accuracy, efficiency and insight. KPMG Tax FAR Automator combines tax technical expertise with our data analytics, artificial intelligence and automation capabilities. Appreciating that a ‘one size fits all’ solution does not work, we have developed a modular offering that is customisable and bespoke to our clients’ particular business needs.

How it works

Module 1 – Tax FAR Diagnostic

KPMG Tax FAR Automator initially performs a diagnostic on your tax fixed assets by applying a suite of data analytical tests to identify issues and anomalies to be actioned such as assets which have not been depreciated, cost inconsistencies between accounting and tax, erroneous calculations based on the depreciation method and effective life, duplicate entries, negative written down values, and sub-optimal use of the low value cost pool rules.

Module 2 – Tax Effective Life Allocation

KPMG Tax FAR Automator can allocate a tax effective life for assets in the tax FAR, matched against the ATO’s list in the Tax Ruling published each year. KPMG Tax FAR Automator can also be used to train multiple machine learning models based on your historical tax fixed assets data to suggest an effective life aligned with your organisation’s tax asset policy.

Module 3 – Opex/Capex Classification

KPMG Tax FAR Automator can be deployed to analyse transactions for tax using data analytics and artificial intelligence. This automates the manually intensive task of line-by-line reviews of GL transactions, purchase orders and invoice text to classify capital versus revenue items for tax and identify which assets should be capitalised in the tax FAR.

Module 4 – Tax FAR Build/Rebuild

KPMG Tax FAR Automator can also be deployed to resolve issues identified in the Tax Fixed Asset Register Diagnostic to perform a rebuild of the tax FAR, using a look-back approach of additions and disposals to rebuild the register from any historical date.

Module 5 – Finance System Upload

KPMG Tax FAR Automator is flexible to allow Australian tax functions to manage the tax FAR externally but also automate the finance system upload templates to ensure internal business processes are adhered to.

Module 6 – Ongoing Maintenance

KPMG Tax FAR Automator is deployable as a managed service to support clients to manage all aspects of their tax FAR process, including the initial upfront tax FAR diagnostic, regular identification of transactions which are capital in nature, allocation of a tax effective life, and inclusion of new additions in the register to roll forward on a regular basis.

For more information, read our Tax Fixed Asset Register Automator factsheet (PDF 805KB).