Issues and challenges facing tax administrations and taxpayers

Issues and challenges facing tax administrations and taxpayers Hafiz Choudhury

Ecosystem for operation of TP rules n n Tax authorities Taxpayers q q n n Data vendors ICT Solution Providers q q n Corporate affiliates Other related parties under TP rules in relevant jurisdictions Government revenue solutions Private sector compliance solutions BI/Analytics solutions Integrators Advisory firms

Standards for business rules and their interaction n n Comparable Data Standards Jurisdiction specific legislative Standards Accounting Standards International Compliance Standards - BEPS Standards bodies q q q G 20/OECD XBRL – a markup standard or data exchange standard? GAAP - Generally Accepted Accounting Principles IASC - International Accounting Standards Committee Global Legal Entity Identifier System (GLEIS)

ICT Applications Rely On Technology Standards Interoperability relies on interpretation of Ø Transfer Pricing Standards AND Ø Technology Standards Industry. Defined Meaning Communications among applications that comply with Industry Standards, and data at rest, are “wrapped” in Technology Standards (XML, UML, JSON, Hadoop, etc. ).

Agreement Through Industry Standards (Goal) Industry Standard With Standards: Automated interoperability through shared interpretation Without Standards: Labor intensive point-to-point coordination Tool Tool Data Automated Interoperab ility Through Industry Standards Data Goal: Automated interoperability

Agreement Through Industry Standards (Reality) Industry Standard Tool Tool With Standards (Reality): Independent interpretations of Industry Standards, often published in prose, prevent automation of interoperability Data Negotiated Interoperabi lity Industry Standard Data Reality: Point to point, negotiated interoperability

Stakeholder issues and concerns n Tax authorities q q n Taxpayers q q n n n …. . …… …… Government solution vendors Data vendors Private sector solution vendors

Example Interoperability Negotiation Process Integration Parties Must Coordinate Their Independent Interpretations In Order To Integrate Coordination Industry Standards Interpretation NIEM ASC X 12 GS 1 NIST STIXTAXII Technology Standards Interpretation. . . UML XSD OWL JSON …

The Registry Approach n A Registry of TP Industry and Technology Standards q q Capture coordinated interpretations Capture Independent interpretations and Versions Capture Alignments among the interpretations Publish coordinated interpretations and alignments Tool Tool Data Semantic Interoperabilit y through a Standards Registry Data Industry Standard interpretations accessible using a variety of Technology Standards Neutral registry Common Registry

A possible TPSemantics. org n A common registry of q q q TP Rules Standards Technology Standards Tool Master Data Tool Data Semantic Interoperabi lity through Registries Data Automated Agreement and Integration at the speed and scale of the Internet