There are numerous challenges for the CFO organization, particularly the tax department in close cooperation with the IT department, are numerous.
Once the new regulations are understood at the current status - future changes are likely - by those responsible in the business groups, the first priority is to identify the requirements for the technology needed to collect, aggregate, and process the required information.
Suppose the existing EPM solutions (Enterprise Performance Management) or the Group Reporting Tool currently in use cannot be used. In that case, the introduction of tax-specific tools or the onboarding of a service provider may be indicated. Large consulting firms with tax expertise are currently happy to come into play as contacts.
However, corporate groups whose financial platforms for preparing consolidated financial statements reach all investees - and can thus form the basis for the new Pillar II reporting - are clearly at an advantage. It must be considered that, analogous to country-by-country reporting (CbCR), joint ventures, holding companies, subsidiaries not consolidated due to materiality, and permanent establishments must also be considered. Therefore, the cooperation mode between Group Accounting and the tax department must therefore be further deepened.