Client
Anon
Industry
Tech, Media & Telecoms
Primary Goal
Simplify transfer pricing reporting
MAKE AI SCALE FAST
Making transfer pricing reporting easier
Changes made by the UK Tax Authority to transfer pricing reporting meant that our client – a global tech, media and telecoms business – was having to analyse tens of thousands of rows of data manually.
We helped the business implement a machine leaning model that gives them a first-draught analysis in a matter of minutes, saving them a huge amount of manual effort.
90%
classification accuracy
2 hours
to run analysis rather than 3 months
Monthly insights
instead of a year-end process
MAKE AI SCALE FAST
From manual to AI-enabled reporting
- Before
- During
- After
MAKE REPORTING FASTER
A bespoke machine learning model
To pull together the documentation required on transfer pricing, our client was running a line-by-line analysis in Excel. The process of analysing tens of thousands of rows of data could take as long as three months.
The client approach us to help it simplify the process – taking out time and manual effort. Our solution was to build a bespoke machine learning model to radically cut down the need for manual review of data.
MAKE DATA WORK
Training the machine learning with transfer pricing data
Creating a bespoke machine learning model was not something we could do in isolation. We needed to rain the model on historical data. And that started with working with our client to review their data and determine where we faced issues.
We ran weekly catch ups, which enabled us to ensure the model was trained on a much data as possible. We transformed the data, performed validation checks and overlaid rules to create transfer-pricing reports that were easily digestible.
While we’d been tasked with making the process faster, providing accurate reporting was, of course, essential. And we recognised that meant keeping a human in the loop to check results. But that human is now faced with a much less burdensome task.
MAKE RESULTS FASTER
From three months to two hours
The machine learning model can be executed with a simple click of a button, generating results that can be seen within minutes. Any anomalies are flagged and reviewed by the client’s tax team.
Where before, the client might be analysing tens of thousands of line items, they now only need to check the rows that are flagged. That could mean they’re now reviewing 1,000 line items – it depends on their risk appetite.
That’s saving our client valuable time it can deploy elsewhere. And what was once a year-end process can now be run monthly.
How we’re making the difference
Our client now has a system that enables them to produce transfer pricing documentation faster. And they have greater confidence in the data they’re presented with.
As the machine learning system is now firmly embedded within their operating environment, the client is equipped with the foundations necessary to implement additional technologies as part of a future-ready tax function.
Our people
Get in touch
Discover why organisations across the UK trust KPMG to make the difference and how we can help you to do the same.