Gratian Joseph, CEO and Co-founder
As domestic businesses and multinational companies become more bullish about global expansion, compliance with an increasing number of stringent tax rules and rigorous enforcement poses additional challenges and the complexity of international tax research, compliance, and planning multiplies. “There is a lot of disruption in the world of international taxation and MNEs cannot rely on the status quo. MNEs require real-time knowledge about all the tax laws relevant to their global footprint, and need to stay informed about the changing domestic, bilateral, or multilateral rules—whether immediate or future, enacted or proposed—and have the information disseminated to all stakeholders within the organization and not just the tax department of the company,” states Gratian Joseph, Co- Founder and CEO, Orbitax.
“Currently, almost 120 countries have signed up for the implementation of the BEPS anti-avoidance rules quarterbacked by the OECD. Apart from this BEPS initiative, anti-avoidance initiatives are also being implemented by the EU and individual countries. These multiple initiatives have made tax, which could average 25 percent to 30 percent of cash f lows, a key concern of MNEs,” highlights Joseph.
Orbitax is uniquely positioned to help MNEs take control and navigate the world of international tax and has built out an end-to-end international tax platform which is centered around a comprehensive database of tax rules for 200 plus countries, which are updated daily and used to power a suite of solutions spanning all areas of international tax be it research, compliance, or planning.
As a technological entity, Orbitax considers the footprint of its clients and presents them with the relevant information and changes in tax regulations they need to know to stay in line with the current taxation trends of the specific countries in which they operate.
We position MNEs to be the driver when navigating the world of taxation, and view law changes as creating opportunities
According to Joseph, the results of the Orbitax research engine are so targeted, real-time, and delivered well in advance of the actual rules becoming law that an MNE is able to know, for example, that a dividend they would have otherwise triggered during 2018 from Nigeria to Singapore should be delayed until after a new income tax treaty becomes effective in 2019 to take advantage of a lower withholding tax rate.
Orbitax is also an innovator when it comes to global tax compliance and maintains a repository of compliance forms by country which are translated into English and presented side-by-side along with the original language document. Orbitax is now looking into auto-populating these forms by leveraging the latest technology innovations including Enterprise Content Management and Robotic Process Automation combined with good old-fashioned manual input via a state-of-the-art data survey and collaboration platform.
When it comes to tax planning, Orbitax has sophisticated calculation engines that calculate detailed US and non-US tax consequences of cross-border transactions. Orbitax is now looking at combining all these solutions together with the goal of providing MNEs with a single platform where all tax attributes and current and forecasted data are locked and loaded with the Orbitax research engine continuously feeding targeted tax law changes based on an MNE's global footprint and cross-border transactions. All that would be needed to calculate the worldwide tax impact over multiple years of any reported tax law change is to change a few input fields. Users will also be allowed to easily run multiple what-ifs to mitigate the impact of any adverse consequences.
“Our strategy is for our MNE clients to always be in control and in the driver’s seat when it comes to navigating the world of international taxation, and to view law changes as creating opportunities to optimize taxation as opposed to constantly worrying about compliance and interest and penalties,” concludes Joseph.