TECHNICAL FIELD

The present disclosure relates generally to tax compliance; and more specifically, to tax compliance management systems that, when operated, provide tax control frameworks for entities. Moreover, the present disclosure also relates to methods of providing tax control frameworks for entities. Furthermore, the present disclosure also relates to software products comprising non-transitory machine-readable data storage media having stored thereon program instructions that, when accessed by processing devices, cause the processing devices to execute the aforementioned methods.

BACKGROUND

Over the years, with development in civilization, several establishments such as manufacturing units, retailers, banks, money-lenders, currency exchangers, and so forth have come into existence. These establishments perform several financial and non-financial operations during their operation, and therefore, are required to pay taxes to various tax authorities and/or impose taxes to other establishments based upon tax laws and regulations pertaining to the tax authorities.

Generally, such establishments employ expert professionals to manage tax payments, producing and submitting information to tax authorities on time and in required formats, manage imposition of taxes by the establishments, and the like. However, different geographical regions (such as different countries, different states and the like) correspond to different tax jurisdictions. In such a case, within a given tax jurisdiction, a single tax authority is generally responsible to enforce a given set of tax laws and regulations pertaining to the given tax jurisdiction. Therefore, there is a need to check whether or not a tax function of said establishments complies with the laws and regulations pertaining to the given tax jurisdiction, given the complex and evolving nature of tax legislation.

Presently, there exist several techniques that are employed by such expert professionals for managing tax compliance of the establishments. However, there exist certain limitations associated with such techniques. Firstly, tax compliance management is often done manually by expert professionals. Notably, tax compliance tasks such as performing calculations for determining tax liabilities, calculating tax risks, devising measures for managing tax risks, providing correct documentation, and the like, are very lengthy and cumbersome processes. In particular, the sheer amount of data that needs to be processed for such manual tax compliance tasks is enormous, and often obtained from disparate sources. Therefore, aggregating and systematically organizing such data poses a significant challenge pertaining to data acquisition and data processing to even the most experienced and efficient expert professionals. As a result, such manual tax compliance management suffers from issues such as frequent occurrence of missed details, erroneous calculations, missed deadlines, and the like. Secondly, the expert professionals can use specialized computing techniques for tax compliance management. However, such specialized computing techniques also have some issues associated therewith, and thus provide very limited support to the expert professionals. As an example, such specialized computing techniques keep getting outdated, as tax laws and regulations keep changing with time. In such a case, when outdated computing techniques are employed, there are introduced inaccuracies in calculations, which are counterproductive to tax compliance management. Thirdly, some establishments utilise in-house tax compliance systems that are managed by the expert professionals and/or management of the establishment. Even in such a case, regular inspection, updation and detailed analysis of records is done manually. Therefore, the use of such systems is sub-optimal.

The limitations associated with currently used tax compliance techniques could lead to filling of incorrect tax returns, imposition of incorrect amount of taxes by the establishments, and the like. As a result, the establishments could be accused of tax evasion by relevant tax authorities, which could further lead to adverse consequences for the establishments (such as business disruption, tax risk, unplanned tax charges, damage to reputation, and the like). Therefore, in light of the foregoing discussion, there exists a need to overcome the aforementioned drawbacks associated with existing techniques for tax compliance, and in particular, there exists a need to provide computing systems that are specifically configured for managing tax compliance of entity. SUMMARY

The present disclosure seeks to provide an improved tax compliance management system that, when operated, provides a tax control framework for an entity. The present disclosure also seeks to provide an improved method of providing a tax control framework for an entity. The present disclosure also seeks to provide a software product for providing a tax control framework for an entity. The present disclosure seeks to provide a solution to the existing problems such as filling of incorrect tax returns and imposition of incorrect amount of taxes by the entity associated with existing techniques for tax compliance. An aim of the present disclosure is to provide a solution that overcomes at least partially the problems encountered in prior art, and provides a tax compliance management system that allows the entity to reduce risk of adverse charges of tax evasion, corruption unwarranted tax reduction, and the like. In one aspect, an embodiment of the present disclosure provides a tax compliance management system that, when operated, provides a tax control framework for an entity, the tax compliance management system being automated or semi-automated, the tax compliance management system comprising a server arrangement that is configured to:

create, at a data repository, a plurality of tax compliance checks pertaining to the entity;

group the plurality of tax compliance checks into at least one tax compliance scenario; and

- process financial information of the entity to determine an extent to which the entity complies with the at least one tax compliance scenario.

In another aspect, an embodiment of the present disclosure provides a method of providing a tax control framework for an entity, the method comprising using an automated or semi-automated tax compliance management system for:

creating, at a data repository, a plurality of tax compliance checks pertaining to the entity;

grouping the plurality of tax compliance checks into at least one tax compliance scenario; and

processing financial information of the entity to determine an extent to which the entity complies with the at least one tax compliance scenario.

In yet another aspect, an embodiment of the present disclosure provides a software product comprising a non-transitory machine-readable data storage medium having stored thereon program instructions that, when accessed by a processing device, cause the processing device to:

create, at a data repository, a plurality of tax compliance checks pertaining to the entity; group the plurality of tax compliance checks into at least one tax compliance scenario; and

process financial information of the entity to determine an extent to which the entity complies with the at least one tax compliance scenario.

The tax compliance management system described herein includes computing hardware including server arrangements that are specially configured to perform data processing operations pertaining to tax compliance management. The tax compliance management system can easily be reconfigured to perform compliance management across a variety of domains, depending on a nature of data being processed therethrough. The data processing techniques of the tax compliance management system are extremely customizable and can be applied to compliance-related data for the variety of domains. The tax compliance management system described herein includes component parts that are specially adapted to manage tax compliance of the entity in a more computationally efficient and accurate manner than hitherto known.

Embodiments of the present disclosure substantially eliminate or at least partially address the aforementioned problems in the prior art, and provides an intelligent and easy to implement tax compliance management system that allows for providing a reliable tax control framework for the entity. Moreover, the tax compliance management system delivers a complete cycle covering detection and investigation of tax issues and help to reduce compliance issues in tax processes of the entity. Furthermore, tax-checking processes are automated with a unified and standardized set of rules associated with tax jurisdictions in order to reduce time and effort of expert professionals, thereby allowing to identify anomalies more accurately. Moreover, the tax compliance management system can be easily integrated with the entity's existing techniques of the tax compliance to provide a customized and easily manageable tax compliance solution.

Additional aspects, advantages, features and objects of the present disclosure would be made apparent from the drawings and the detailed description of the illustrative embodiments construed in conjunction with the appended claims that follow.

It will be appreciated that features of the present disclosure are susceptible to being combined in various combinations without departing from the scope of the present disclosure as defined by the appended claims.

BRIEF DESCRIPTION OF THE DRAWINGS

The summary above, as well as the following detailed description of illustrative embodiments, is better understood when read in conjunction with the appended drawings. For the purpose of illustrating the present disclosure, exemplary constructions of the disclosure are shown in the drawings. However, the present disclosure is not limited to specific methods and instrumentalities disclosed herein. Moreover, those in the art will understand that the drawings are not to scale. Wherever possible, like elements have been indicated by identical numbers. Embodiments of the present disclosure will now be described, by way of example only, with reference to the following diagrams wherein:

FIG. 1 is a schematic illustration of an exemplary network environment wherein a tax compliance management system is implemented, in accordance with an embodiment of the present disclosure;

FIG. 2 is an illustration of a conceptual basis of the tax compliance management system, in accordance with an embodiment of the present disclosure; FIG. 3 is an illustration of a plurality of participation levels of an entity in respect of a tax compliance management system, in accordance with an embodiment of the present disclosure;

FIG. 4 is an illustration of a plurality of modules of a tax compliance management system, in accordance with an embodiment of the present disclosure;

FIG. 5 is an exemplary schematic illustration of selected fields of action in a tax compliance management system, in accordance with an embodiment of the present disclosure;

FIG. 6 is an illustration of a permanent risk management cycle that is enabled by a tax compliance management system, in accordance with an embodiment of the present disclosure; and

FIG. 7 illustrates steps of a method of providing a tax control framework for an entity, in accordance with an embodiment of the present disclosure.

In the accompanying drawings, an underlined number is employed to represent an item over which the underlined number is positioned or an item to which the underlined number is adjacent. A non-underlined number relates to an item identified by a line linking the non-underlined number to the item. When a number is non-underlined and accompanied by an associated arrow, the non-underlined number is used to identify a general item at which the arrow is pointing.

DETAILED DESCRIPTION OF EMBODIMENTS

The following detailed description illustrates embodiments of the present disclosure and ways in which they can be implemented. Although some modes of carrying out the present disclosure have been disclosed, those skilled in the art would recognize that other embodiments for carrying out or practicing the present disclosure are also possible. In one aspect, an embodiment of the present disclosure provides a tax compliance management system that, when operated, provides a tax control framework for an entity, the tax compliance management system being automated or semi-automated, the tax compliance management system comprising a server arrangement that is configured to:

create, at a data repository, a plurality of tax compliance checks pertaining to the entity;

group the plurality of tax compliance checks into at least one tax compliance scenario; and

- process financial information of the entity to determine an extent to which the entity complies with the at least one tax compliance scenario.

In another aspect, an embodiment of the present disclosure provides a method of providing a tax control framework for an entity, the method comprising using an automated or semi-automated tax compliance management system for:

creating, at a data repository, a plurality of tax compliance checks pertaining to the entity;

grouping the plurality of tax compliance checks into at least one tax compliance scenario; and

processing financial information of the entity to determine an extent to which the entity complies with the at least one tax compliance scenario.

In yet another aspect, an embodiment of the present disclosure provides a software product comprising a non-transitory machine-readable data storage medium having stored thereon program instructions that, when accessed by a processing device, cause the processing device to:

create, at a data repository, a plurality of tax compliance checks pertaining to the entity; group the plurality of tax compliance checks into at least one tax compliance scenario; and

process financial information of the entity to determine an extent to which the entity complies with the at least one tax compliance scenario.

The present disclosure provides the aforementioned system, method and computer program product providing the tax control framework for the entity. The aforementioned system is intelligent, easy to implement, and allows for providing a reliable tax control framework for the entity. Notably, such a system can be operated semi-autonomously or fully autonomously to provide the tax control framework for tax compliance management of the entity. Consequently, the described system allows for reducing manual work pertaining to tax compliance management for the entity. As a result, the described system is capable of eliminating inter-individual (such as an expert professional in the field of taxation) variations in judgement based on knowledge of expert professionals of various domains, thereby providing a stable and reliable performance of the system. In the tax compliance management system, processes for defining, scheduling and executing compliance checks, and for reporting results and analysing compliance issues are automated. Furthermore, by employing powerful processing hardware, the system allows for analysing relevant data for determining the extent to which the entity complies with the at least one tax compliance scenario. As a result, tax compliance management provided by way of the described system is accurate, reliable and efficient. Notably, the system described herein provides customized computing hardware that is specifically configured to be able to process tax laws and regulations-related data from multiple tax authorities and complex financial data of the entity, to form a comprehensive assessment of tax risks and tax compliance measures. Specifically, the customized computing hardware collates, processes and stores tax laws and regulations-related data from disparate and often distributed sources including but not limited to financial data sources, and measurement data. This allows for achieving highest possible degree of accuracy in managing the tax compliance of the entity. Beneficially, the system and method allow for accurately providing the tax control framework for tax compliance management, in a simple, quick, and user- friendly manner. Moreover, the system is capable of real-time tax compliance management of the entity. As a result, the tax compliance management system allows the entity to optimize cash flow, and reduce risk of adverse charges of tax evasion, corruption unwarranted tax reduction, and the like. Based on a generic process of continual tax monitoring and risk management, the tax compliance management system provides a holistic approach with predefined automated or semi- automated processing steps to establish a tax control system for the entity. Having a single source of data analysis and applying dynamic exception reporting and tax risk management via the tax compliance management system provides valuable insight into understanding the entity's tax and assists with making better, more informed, tax-related decisions. Moreover, the tax compliance management system provides the ability to view and analyse country or sector-specific entity data, and drill down to individual tests and transactional data of the entity. This enables the entity to manage compliance, focus on major cost drivers and develop tax strategies on a local and global basis. Beneficially, the tax compliance management system provides context-rich information for each tax compliance scenario, enabling improved transparency, traceability and auditability of data for the use of the tax function of the entity.

It will be appreciated that the aforesaid system, when operated, is not limited to providing the tax control framework for the entity for only a single entity, and can be operated to provide tax control frameworks for a plurality of entities (namely, multiple entities). In such a case, the aforesaid steps are implemented for each entity of the plurality of entities. Likewise, the aforesaid method is also not limited to providing the tax control framework for the entity for only a single entity, and can be employed for providing tax control frameworks for a plurality of entities.

The tax compliance management system, when operated, provides the tax control framework for the entity. In one embodiment, the tax compliance management system is automated (namely, fully autonomous). In such a case, a user of the tax compliance management system operates the tax compliance management system in a manner that the aforesaid steps are entirely implemented at the tax compliance management system. In another embodiment, the tax compliance management system is semi-automated (namely, semi-autonomous). In such a case, the user of the tax compliance management system operates the tax compliance management system in a manner that at least one of the aforesaid steps are implemented by the user. As an example, the step of creating, at the data repository, the plurality of tax compliance checks pertaining to the entity may be performed manually by the user, and the user may create (namely, enter) such plurality of tax compliance checks, into the tax compliance management system.

It will be appreciated that the automated or semi-automated tax compliance management system uses a plurality of modules for providing the tax control framework. Optionally, the plurality of modules of the tax compliance management system broadly comprise 'group tax directive ', 'risk management' , and 'controller' modules. More optionally, the group tax directive module manages a tax function for the entity, said group tax directive module comprising sub-modules such as 'tax regulations' , 'process documentation' , and 'training concept'. Yet more optionally, the risk management module manages a tax risk for the entity, said risk management module comprising sub-modules such as 'risk control matrix', 'ongoing monitoring' , and 'interna! audit' . Still more optionally, the controller module implements process-integrated control steps to ensure tax compliance of the entity, said controller module comprising modules pertaining to Information Technology (IT) based processes and manual process. The IT based processes are implemented as automated or semi-automated processes of the tax compliance management system. When the tax compliance management system is semi- autonomous, the controller module comprises work instructions and checklists to be utilized by at least one employee of the entity. The manual process comprises work instructions, checklists, and manuals to be utilized by the at least one employee of the entity.

Optionally, at the server arrangement, the plurality of modules are implemented as a tax compliance module that is dedicatedly configured to perform tax compliance tasks. In other words, optionally, the server arrangement comprises the tax compliance module. More optionally, the tax compliance module is beneficially implemented using custom computing hardware that is reconfigurable depending on a tax function, tax risk and tax compliance being executed on the tax compliance module. More optionally, the tax compliance module is implemented by employing a configuration of field-programmable gate arrays (FPGA's) and/or reduced instruction set computers (RISC). Therefore, the tax compliance module can be understood to be a custom computing hardware that is configured to provide the tax control framework described throughout the present disclosure. Notably, such a custom computing hardware is computationally efficient, thereby providing tax control framework at a much faster speed as compared to conventional computing hardware. Yet more optionally, the RISC are reconfigured in response to a structure of information received thereat to be processed, allocating one or more tax control framework to a given RISC, and by performing correlations by way of information exchange between a plurality of the RISC. For example, such RISC are beneficially employed for implementing aforesaid clusters of variable-state machines for providing machine-learning artificial-intelligence (AI) functionality.

It will be appreciated that the custom computing hardware and the mode of the operation of the tax compliance management system, i.e. automated or semi-automated, impart the desired technical effect on processes that are carried out inside as well as outside the tax compliance management system. Specifically, the data curation and data processing is performed intelligently by the custom computing hardware. Moreover, such data curation and data processing by the custom computing hardware is effective and robust for managing the complex tax compliance process. Furthermore, the custom computing hardware can be fully automated . However, the custom computing hardware in a semi- automated mode functions by providing notifications to the user of the tax compliance management system, thereby enabling efficient tax compliance management. Beneficially, such automated or semi- automated curated database may be developed and used in various domains, such as health, medicine, finance, taxation, and so forth. It may be appreciated that the technical effect pertaining to database curation, data processing and data management is very d iverse.

It will also be appreciated that especially the risk management module provides a technical effect in that the risk management is enabled to be based on more aspects and sources of information as well as timely updates than would be humanly possible. The risk management module is thus not simply directed at comparing various tax laws and regulations, but to collate vast sources of information and aspects in a timely manner and thus provides a technical effect. It will also be appreciated that the risk management module removes the subjective risk management performed by a human risk assessor and the system herein thus provide a technical solution to the problem of how to provide an objective risk assessment, which technical solution goes beyond simply implementing an automated risk management as the detailed description herein shows.

Optionally, the user of the tax compliance management system is a person having knowledge pertaining to at least one of: finance, accounting, business administration, auditing . Examples of the user include, but are not limited to an independent auditor, an internal auditor employed by an entity being audited, an auditor employed by at least one firm offering audit services, head of the tax department pertaining to the entity, and a person associated with tax compliance management pertaining to the entity.

Throughout the present disclosure, the term "server arrangement" refers to an arrangement of at least one server that, when operated, performs the aforementioned steps to provide the tax control framework for the entity. The term " server " generally refers to an application, program, process or device in a client-server relationship that responds to requests for information or services by another application, program, process or device (a client) on a communication network. The term "server" also encompasses software that makes the act of serving information or providing services possible. Moreover, the term "client" generally refers to an application, program, process or device in a client-server relationship that requests information or services from another application, program, process or device (the server) on the communication network. Importantly, the terms "client" and "server" are relative since an application may be a client to one application but a server to another application. The term "client" also encompasses software that makes the connection between a requesting application, program, process or device and a server possible, such as an FTP client. It will be appreciated that the communication network can be an individual network, or a collection of individual networks that are interconnected with each other to function as a single large network. The communication network may be wired, wireless, or a combination thereof. Examples of the individual networks include, but are not limited to, Local Area Networks (LANs), Wide Area Networks (WANs), Metropolitan Area Networks (MANs), Wireless LANs (WLANs), Wireless WANs (WWANs), Wireless MANs (WMANs), the Internet, radio networks, telecommunication networks, and Worldwide Interoperability for Microwave Access (WiMAX) networks.

The server arrangement is coupled in communication with a database arrangement. Throughout the present disclosure, the term " database arrangement" refers to an arrangement of at least one database that when employed, allows for the server arrangement to perform the aforementioned steps to provide the tax control framework for the entity. The term " database " generally refers to hardware, software, firmware, or a combination of these for storing information in a n organized (namely, structured) manner, thereby, allowing for easy storage, access (namely, retrieval), updating and analysis of such information. The term " database " also encompasses database servers that provide the aforesaid database services to the server arrangement. It will be appreciated that the data repository is implemented by way of the database arrangement. Notably, the server arrangement is coupled in communication with the data repository. Optionally, the tax compliance management system further comprises the data repository. Optionally, the server arrangement is configured to populate data into the data repository. Optionally, the data repository comprises information pertaining to : a conceptual basis of the tax compliance management system, a plurality of participation levels of an entity, the plurality of modules of a tax compliance management system.

For illustration purposes only, there will now be considered an exemplary network environment wherein the tax compliance management system is implemented pursuant to embodiments of the present disclosure. One such network environment has been illustrated in conjunction with FIG. 1 as explained in more detail hereinafter. The exemplary network environment may include a user device associated with the user of the automated or semi-automated tax compliance management system, the server arrangement including the at least one server, the database arrangement and the communication network. Notably, the server arrangement is coupled in communication with the database arrangement, said database arrangement acting as the data repository that is accessible by the server arrangement. Moreover, the server arrangement is coupled in communication with the user device via the communication network. In such a case, the user device can be understood to be the " client " for the server arrangement. It is to be noted here that the server arrangement could be coupled in communication with a plurality of user devices associated with a plurality of users. Examples of the user device include, but are not limited to, a mobile phone, a smart telephone, a Mobile Internet Device (MID), a tablet computer, an Ultra- Mobile Personal Computer (UMPC), a phablet computer, a Personal Digital Assistant (PDA), a web pad, a Personal Computer (PC), a handheld PC, a laptop computer, and a desktop computer.

It will be appreciated that the aforementioned server arrangement can be implemented in several ways. In an example, the entire server arrangement could be directly coupled in communication with a given user device associated with a given user, via the communication network. In such a case, the entire server arrangement can be accessed by the given user using the given user device, via the communication network. In another example, the server arrangement could have a distributed architecture wherein the server arrangement could comprise a plurality of servers that are coupled in communication with a given user device associated with a given user, via the communication network. In such a case, there can be a first server (namely, a "front-end server ") that is directly coupled in communication with the given user device, and at least one server (namely, at least one " back-end server ") that is coupled in communication to the first server. In operation, the first server can be accessed by the given user using the given user device, via the communication network. Furthermore, in such a case, the at least one back-end server, either alone, or in combination with the front-end server, could implement the aforesaid steps. In yet another example, server arrangement could be implemented by way of a cloud server arrangement.

Throughout the present disclosure, the term " entity " used herein refers to an organization, a group of organizations, and the like, for which the tax control framework needs to be provided. Notably, the entity indulges in tax related activities in at least one tax jurisdiction. Moreover, the entity is liable to pay taxes to a plurality of tax authorities and/or other entities. In a first case, when the entity undertakes (namely, participates in) a taxable event pertaining to a given tax jurisdiction, the entity is liable to pay tax to a given tax authority associated with the g iven tax jurisdiction. In other words, the entity incurs tax liability towards the given tax jurisdiction, upon undertaking the taxable event pertaining to the given tax jurisdiction. In a second case, when the entity undertakes (namely, participates in) a taxable event pertaining to a given tax jurisdiction the entity is liable to pay or impose service-related tax (for example, such as value added tax (VAT), goods and services tax (GST), and the like) to other entities for providing a given service. Examples of taxable events include, but are not limited to, receipt of income, receipt of interest on savings, and capital gains by selling of assets. Notably, such service-related taxes are generally referred to as indirect taxes. Moreover, such indirect taxes are important source of tax revenue for the at least one tax jurisdiction. Therefore, there is need to manage indirect taxes to optimize economy and reduce tax risk(s). As a result, the tax compliance management system provides the tax control framework for both direct and indirect taxes. In an example, the entity may be a multi-national corporation (namely, a company that operates in multiple countries). In such an example, the multi-national corporation may have an income tax liability towards each of the multiple countries in which it is operating. In another example, the entity may be a national corporation (namely, an enterprise that operates in multiple regions of a single country) that provides home improvement services. In such an example, the national corporation may have to impose GST differently according to the different regions in which it is operating. It is to be understood that the entity may also be referred to as an "organization" , a " firm ", an "enterprise" , an "establishment" , an " agency " or an " institution ".

Throughout the present disclosure, the phrase "tax control framework" refers to a basic concept of tax compliance management underlying the tax compliance management system. Notably, a functionality of such a tax compliance management system provides compliance features of the tax control framework. Beneficially, the tax control framework is an essential foundation of a tax control function of the entity, and the compliance features of tax control framework allow for establishing an extent to which the entity complies with tax laws and regulations of its operational jurisdiction(s). In essence, the tax control framework can be understood to be a backbone of the entity's tax compliance status. Moreover, optionally, the tax control framework is based upon uniform taxation standards from which requirements of the tax compliance management system are derived.

It will be appreciated that the tax control frameworks provided by the tax compliance management system for different entities may be different. Said tax control frameworks are customized based upon compliance requirements of the different entities, by utilizing the tax compliance management system. For example, the tax control framework provided by the tax compliance management system may be different for an entity operating on a first business model as compared to an entity operating on a second business model. The processes for managing tax compliance of entities are extremely complex, especially when tax liabilities of the entity are towards multiple tax jurisdictions. It will be appreciated that tax compliance not just includes determination of tax liability and assessment of whether or not such liability has been complied with. Tax compliance management is an extremely complex multi-faceted and multi-level process that generally requires both manual and computational resources. Even then, the conventional process of tax compliance is extremely tedious and full of errors. The present disclosure provides improved system and method that are dynamically scalable and provide tax compliance frameworks efficiently for both small-scale entities (tax compliance management of which is substantially simple), as well as large-scale entities (tax compliance management of which is quite complex).

The automated or semi-automated tax compliance management system is used to create, at the data repository, the plurality of tax compliance checks pertaining to the entity. Throughout the present disclosure, the phrase "tax compliance checks" refers to given requirement(s) to be satisfied by the entity for the tax compliance management. For example, such requirement(s) may be tax laws and regulations pertaining to the tax authority, regulatory guidelines pertaining to the entity, security policies pertaining to the entity, and the like. Notably, the plurality of tax compliance checks pertaining to the entity are evaluated in order to determine tax risk(s) for the entity. In such a case, when the plurality of tax compliance checks pertaining to the entity are successfully satisfied by the entity, a tax risk for the entity is considerably minimized. On the contrary, if the plurality of tax compliance checks pertaining to the entity are unsatisfied by the entity, a tax risk for the entity is considerably enhanced. It will be appreciated that the tax compliance management system can be used to provide tax control frameworks for a plurality of entities. In such a case, creation of tax compliance checks pertaining to the plurality of entities amounts to specially curating the data repository with comprehensive information of tax compliance checks that can be employed for tax compliance management. Such curation of the data repository is extremely complex, as tax compliance checks often vary from entity to entity. Notably, the data repository becomes a specially curated database including custom tax compliance checks for the entity. This data curation is done in a technical manner, optionally using artificial intelligence (described later). Therefore, the curated data repository has a technical character. As the data repository is curated to have custom tax compliance checks for multiple entities, it is extremely comprehensive. The curated data repository can be used (by the server arrangement) to identify and use pre-stored tax compliance checks for a new entity for which tax compliance is to be managed, thereby reducing time and effort in fetching tax compliance checks.

Optionally, the plurality of tax compliance checks are same for the plurality of entities. In such a case, the plurality of entities having similar operational characteristics for example, such as conduct business at similar geographic location(s), conduct business of similar nature, and the like.

Alternatively, optionally, the plurality of tax compliance checks are different for different entities. In such a case, each of the plurality of entities have different operational characteristics for example, such as conduct business of different nature, conduct business at different geographic location(s), and the like.

Optionally, the plurality of tax compliance checks are created automatically at the data repository using at least one artificial intelligence algorithm. In such a case, the plurality of tax compliance checks are created based upon at least one of: tax laws and regulations pertaining to at least one tax authority, historical financial information of the entity. Alternatively, optionally, the plurality of tax compliance checks are created manually at the data repository. In such a case, the user may create (namely, enter) the plurality of tax compliance checks, into the tax compliance management system.

Optionally, to create tax compliance checks, the at least one artificial intelligence algorithm uses at least one of: existing information at the data repository, information from the web. Notably, the information from web may include, for example, tax laws and regulations from websites of different tax authorities, such as those functioning at different jurisdictions. It will be appreciated that using artificial intelligence algorithms to create tax compliance checks enables processing of large volumes of data to be analysed to extract meaningful information while saving processing time. Moreover, the extracted information is then further organized, analysed and used by the server arrangement for providing tax compliance framework.

Optionally, the plurality of tax compliance checks are modified (namely, updated) based upon the changing requirement(s) pertaining to the entity, using at least one artificial intelligence algorithm. In such a case, the plurality are modified periodically for example, such as monthly basis, quarterly basis, half yearly basis, yearly basis, and the like. Alternatively, optionally, the plurality of tax compliance checks are modified (namely, updated), manually by the user, based upon the changing requirement(s) pertaining to the entity. It will be appreciated that modifying the plurality of tax compliance checks in such a manner allows for maintaining an up- to-date set of tax compliance checks that are to be analysed in respect of the entity. This allows for ensuring tax compliance of the entity, in respect of rapidly changing national and global tax scenarios. It will be appreciated that such a manner of dynamically updating tax compliance checks is extremely useful, as it is highly unlikely for a person to be aware of changes in tax laws/rules/regulations across several hundreds of tax jurisdictions. Beneficially, the tax compliance checks may be updated in a technical manner using artificial intelligence to ensuring up-to-date status of such curated tax compliance checks at the data repository. Additionally, beneficially, the up-to-date curated tax compliance checks enables efficient and robust tax compliance management for the entity even though the field of taxation is highly dynamic.

Examples of the plurality of tax compliance checks include, but are not limited to, validation of a tax ID (for example, such as, Value Added Tax ID (VAT ID), Goods and Services Tax ID (GST ID)) pertaining to the entity, reporting of a tax code on documentations pertaining to the entity, validation of a tax ID pertaining to a vendor, validation of the tax liability pertaining to the entity towards a given tax jurisdiction, validation of filing of a tax return pertaining to the entity, validation of amount of tax payable by the entity to at least one tax jurisdiction.

Notably, management of tax compliance by the entity is needed for both payment of correct taxes by entity towards the at least one tax authority and imposition of correct taxes by entity towards the other entities or individuals, to whom the entity provides services. As an example, a tax liability of the entity may be determined by the tax compliance management system in order to check whether or not the entity has paid a correct amount of tax to requisite tax authority(-ies). As another example, a tax calculation for the entity may be determined by the tax compliance management system in order to compute how much indirect tax the entity should levy on its customers.

Optionally, the server arrangement is configured to determine a tax liability of the entity. Optionally, in this regard, the server arrangement is configured to:

(a) obtain information pertaining to the entity; (b) perform natural language processing on the information pertaining to the entity to generate a semantic representation of the information pertaining to the entity, wherein the natural language processing is to be performed based upon at least one natural language in which the information is available;

(c) determine at least two tax jurisd ictions towards which the entity has the tax liability, based upon the semantic representation of the information pertaining to the entity, the at least two tax jurisdictions having different tax laws and regulations;

(d) access, from the data repository, knowledge-based information and/or regulation-based information pertaining to tax for the at least two tax jurisdictions, and analyse the knowledge-based information and/or the regulation-based information to generate a semantic representation of the knowledge-based information and/or the regulation-based information for the at least two tax jurisdictions; and

(e) analyse the semantic representation of the information pertaining to the entity, based upon the semantic representation of the knowledge- based information and/or the regulation-based information for the at least two tax jurisdictions, to determine the tax liability of the entity towards the at least two tax jurisdictions.

In this regard, the data repository optiona lly becomes a specially curated database includ ing the knowledge-based information and/or the regulation-based information pertaining to tax for the at least two tax jurisdictions. The data curation is done in a technical manner, using artificial intelligence. The knowledge-based information and/or the regulation-based information pertaining to tax for a given jurisdiction can be efficiently fetched from such a data repository. Optionally, the server arrangement is configured to populate the data repository with this knowledge-based information and/or regulation-based information. In this regard, optionally, the server arrangement is configured to obtain the sheer amount of data from disparate sources. Optionally, the server arrangement is configured to obtain the information pertaining to the entity either directly or indirectly. When obtaining directly, the server arrangement obtains said information from at least one of: a device associated with the entity, a data repository associated with the entity, the database arrangement. Optionally, the information pertaining to the entity is obtained by the server arrangement by employing blockchain technology. In such a case, the information pertaining to the entity can be stored as a blockchain. When obtaining indirectly, the information pertaining to the entity is provided by the user of the tax compliance management system to the server arrangement over the communication network.

Optionally, the information pertaining to the entity comprises at least one of: financial information pertaining to the entity, administrative information pertaining to the entity, legal information pertaining to the entity, personal information pertaining to the entity. The administrative information pertaining to the entity relates to organizational (namely, managerial) information associated with the entity for example, such as a number of offices (namely, branches or departments) of the entity, locations of the offices of the entity, organizational structure of the entity, merger and/or acquisitions-related information (for example, such as transactions related to sales and/or purchase of various assets) of the entity, transfer pricing information pertaining to the entity, customs- related information and supply chain taxes. Moreover, the legal information pertaining to the entity relates to jud icial (namely, related to law) information associated with the entity for example, such as laws that the entity is subject to, and legal regulations that the entity is subject to. Furthermore, the personal information pertaining to the entity relates to private information associated with the entity for example, such as, date of incorporation of the entity, board of directors of the entity, and headquarters of the entity. It will be appreciated that the term " information pertaining to the entity " encompasses all relevant information pertaining to the entity that can be utilised by the system for tax compliance of the entity. Optionally, the information pertaining to the entity is in form of at least one of: scanned handwritten data (for example, such as scanned handwritten receipts), scanned digitally written data (for example, such as organizational structure of an entity), scanned machine-readable data (for example, such as digitally filled investment declarations), encoded data, aud io data, image data (for example, such as an image of an expense receipt), audio-visual data, digital data (for example, such as machine-readable salary slips), simulation data, transaction data, blockchains.

Optionally, the server arrangement performs natural language processing on the information pertaining to the entity to generate the semantic representation of the information pertaining to the entity, wherein the natural language processing is to be performed based upon at least one natural language in which the information is available. Optionally, the server arrangement employs at least one artificial intelligence algorithm to perform natural language processing on the information to generate the semantic representation of the financial information. Optionally, the natural language processing on the information pertaining to the entity is performed by way at least one of: optical character recognition, machine translation, topic segmentation, word sense disambiguation, lemmatization, parsing, word segmentation, morphological segmentation, analysing lexical semantics, speech recognition, speech segmentation, summarization. It will be appreciated that if such natural language processing were to be performed manually, by the user, for the obtained information pertaining to the entity, the user would spend considerable amount of time and effort. Moreover, such manual processing would be prone to errors and inaccuracies. It will be appreciated that when the server arrangement is optionally configured to access, from the data repository, up-to-date knowledge- based information and/or regulation-based information pertaining to tax for the at least two tax jurisdictions, and analyse the knowledge-based information and/or the regulation-based information to generate a semantic representation of the knowledge-based information and/or the regulation-based information for the at least two tax jurisdictions. The term " knowledge-based information " refers to historical information and/or information obtained from expert professionals in a given field of knowledge (for example, such as tax) . Furthermore, the term " regulation-based information " refers to legal and regulation-related information pertaining to a given field of knowledge (for example, such as tax) . It will be appreciated that the knowledge-based information and/or the regulation-based information pertaining to tax for the at least two tax jurisdictions constitutes comprehensive information pertaining to taxation within the at least two tax jurisdictions towards which the entity has the tax liability. Notably, the knowledge-based information and/or the regulation-based information is to be accessed from disparate and distributed sources. Therefore, data curation, data processing and data management and analysis is simplified due to the comprehensive data repository and thereby considerably reducing the user's effort in determining the tax compliance. Optionally, the knowledge-based information and/or regulation-based information is stored in encrypted form in a blockchain. The server arrangemnt optionally, uses smart contracts to access the blockchain to obtain data and other information therefrom.

Optionally, in the automated or semi-automated tax compliance management system, the server arrangement is further configured to : analyse a plurality of conceptual parameters in respect of the entity to generate a tax risk assessment for the entity; create the plurality of tax compliance checks pertaining to the entity, based upon the tax risk assessment.

Notably, the plurality of conceptual parameters are basic elements of tax compliance management that form the crux of effective tax compliance. Moreover, incorporating such plurality of conceptual parameters in the tax compliance management system ensures that the entity meets its tax compliance requirements. Therefore, the plurality of conceptual parameters are analysed for generating tax risk assessment for the entity. The plurality of conceptual parameters collectively constitute the conceptual basis of the tax compliance management system. Moreover, the plurality of tax compliance checks pertaining to the entity are created, based upon the tax risk assessment, thereby minimizing the tax risk for the entity. Furthermore, a g iven tax compliance check is created to avoid a possible tax risk that is identified in the tax risk assessment. In an example, tax risk may be not adhering to a modification in the existing tax laws and regulations of the given tax jurisdiction. In such an example, the entity pays an incorrect amount of tax to the tax authority. As a result, the plurality of tax compliance checks may be regular checks of tax laws and regulations associated with the tax jurisdictions to avoid tax reduction.

Optionally, the server arrangement is configured to execute a permanent risk management cycle for the entity to obtain the tax risk assessment. Moreover, the permanent risk management cycle not only computes the tax risk assessment, but also optionally, in this regard, the permanent risk management cycle includes steps of identification of risks, risk assessment, derivation of measures for future error/risk avoidance and process optimization, monitoring implementation of derived measures and fulfilment of reporting obligations. One such permanent risk management cycle has been illustrated in conjunction with FIG. 6 as explained in more detail hereinafter. Notably, the identification of risks pertains to identification of deferred risks (for example, using a risk control matrix), identification of process-integ rated control results, identification of control results of ongoing monitoring and internal audit(s), establishment of tax figures, identification of process optimization or improvements required to minimize risk, and the like. In such a case, the risks are identified using at least one artificial intelligence algorithm. Moreover, in such a case, a large volume of tax requirement data is processed using computing equipment, thereby identifying risks more accurately. After the identification of risks, the computation of risk assessment is done. In an example, the risk assessment may be made by way of mathematical formula(e), historical data, and the like. Following the risk assessment, preventive and revealing measures are derived for future error/risk avoidance and process optimization. In such a case, said preventive measures guarantee error-free tax declaration by the entity, whereas said revealing measures enable correction of incorrect/sub-optimal tax-related processes. Moreover, the implementation of the derived measures is monitored, whilst also ensuring communication of said measures to relevant employees of the entity (for example, by training of the relevant employees). Furthermore, the details of the permanent risk management cycle are reported to members of an executive board and members of a supervisory board of the entity.

It is to be understood that analysis of the identified tax risks for the entity hig hlights tax compliance issues pertaining to the entity. Such tax compliance issues need to be add ressed in order to ensure proper tax compliance by the entity. The complex processing steps executed by the server arrangement allow for ensuring that all possible compliance issues are identified, assessed and optionally, mitigated, to ensure complete tax compliance of the entity. Optionally, in the automated or semi-automated tax compliance management system, the server arrangement is further configured to monitor tax requirements pertaining to the entity for generating the tax risk assessment for the entity. Optionally, in this rega rd, the server arrangement is configured to employ at least one artificial intelligence algorithm to monitor tax requirements pertaining to the entity for generating the tax risk assessment for the entity. As a result, upon employing at least one artificial intelligence algorithms, the system identifies additional tax risk(s), thereby generating the tax risk assessment based upon the add itional tax risk(s) . Therefore, the generated tax risk assessment is always up-to-date. Furthermore, optionally, the tax risk assessment generated upon monitoring the tax requirements allows for optimizing the plurality of tax compliance checks pertaining to the entity. Optionally, in this regard, the server arrangement is configured to employ at least one artificial intelligence algorithm for analysing a large volume of data to identify key compliance requirements, thereby optimizing the plurality of tax compliance checks pertaining to the entity.

It will be appreciated that monitoring the tax requirements for generating tax risk assesment for the entity reduces manual efforts and time. Moreover, it is not possible for a person to manually monitor diverse data in an efficient manner. The use of at least one artificial intelligence algoithm enables in an efficient and accurate monitoring process and optimizing data to an up-to-date information at the data repository. Optionally, the server arrangement, in a semi-automated mode, may provide notifications to the user of the tax compliance management system, thereby enabling efficient tax compliance management.

Optionally, the plurality of conceptual parameters are selected from the group consisting of: compliance culture, compliance objectives, compliance risks, compliance programs, compliance organization, compliance communication, and compliance monitoring and improvement. Notably, the tax compliance management system utilizing such plurality of conceptual parameters helps to ensure proper corporate governance, thereby provid ing a ground of defence against personal liability of board members (for example, such as the supervisory board, the executive board, the management, and the like) to charges of tax evasion, corruption and unwarranted tax reduction.

The term " compliance culture " refers to an attitude (namely, an approach) of the tax compliance management system in a manner that tax compliance of the entity is improved . Notably, the compliance culture ensures adequacy, accuracy and effectiveness of tax compliance of the entity. Notably, the compliance culture is shaped primarily by an attitude and behaviour of a management body of the entity and/or by role of a supervisory body towards tax compliance. Beneficially, a positive and strong compliance culture implies the importance of observing rules to the employees. Incorporating such a compliance culture in the tax compliance management system shows a willingness of the entity to conform to tax rules. Moreover, the management body of the entity establishes necessary measures to ensure compliance with the tax laws and regulations associated with the given tax jurisdiction, by using the tax compliance management system, in order to avoid violation of tax laws and regulations. As a result, the management body of the entity, and the supervisory body is secured from accusations of tax evasion, thereby averting damage to the management body of the entity. Notably, the use of the tax compliance management system strengthens trust in a relationship of the entity with the tax authorities. The tax compliance management system can be employed for all types of entities regardless of their business model and size.

It will be appreciated that creation of an appropriate compliance culture manifests itself in a code of conduct and a group tax d irective. The term " compliance objectives " refers to a given goal(s) that are to be achieved by the entity in order to improve tax compliance of the entity. Notably, the compliance objectives (namely, goals) to be achieved by the automated or semi-automated tax compliance management system are deduced by the tax laws and regulations of the g iven tax authority, historical tax records of the entity, and the like. In an example, the compliance objectives may be deduced by the expert professionals (namely, legal representatives) . Moreover, achieving such compliance objectives is important for the entity to minimize tax risks. It is to be understood that the compliance objectives may also be referred to as " compliance goals".

The term "compliance risks" refers to a given risk(s) that the entity would be subjected to if they do not correctly comply with tax requirements. Notably, when the entity violates the tax rules and/or fails to meet the compliance objectives, the entity is subjected to the compliance risks. Moreover, the compliance risks are analysed by the tax compliance management system with regard to probability of occurrence and possible consequences (for example, such as a level of damage) . Examples of the tax risks include, but are not limited to incorrect tax returns, incorrect path of flow for the information, insufficient controls marked.

The term "compliance program " refers to a set of activities or measures undertaken by the entity for purposes of tax compliance. Notably, the compliance program includes proper steps and measures associated with the tax compliance of the entity for example, such as an assessment of compliance risks, establishing a formal procedure for compliance communication, and the like. Moreover, the compliance program introduces principles and measures that aims at limiting compliance risks, thereby avoiding compliance violations. The term " compliance organization " refers to a given management body of the entity that regulates the rules for the tax compliance management system. Notably, the compliance organization regulates the responsibilities of the entity, thereby providing resources necessary for the automated or semi-automated tax compliance management system.

Optionally, structural and procedural compliance organization is designed in a manner that the tax risks are minimized . Notably, organizational structure of the entity is desig ned with regard to the structural and procedural compliance organization, thereby ensuring effectiveness of the tax compliance management system.

It will be appreciated that employees and management bodies of the entity participate at a plurality of participation levels of the entity in respect of the tax compliance management system. The plurality of participation levels of the entity in respect of the tax compliance management system may be 'conceptual level', 'control plane', and 'operational level' . Notably, d ifferent employees and management bodies of the entity have different roles and responsibilities, and therefore, participate at different participation levels of the plurality of participation levels. The term "compliance communication" refers to a communication between company employees and/or third parties regard ing a compliance program of the entity. Notably, the compliance communication also defines responsibilities associated with the company employees and/or third parties. In such a case, the company employees and/or third parties are made aware of tasks and responsibilities associated therewith via such a communication. Moreover, upon completion of the tasks, a formal communication of completion is shared according to a proper reporting system in the company. As a result, higher level management is kept informed about progress of the company employees and/or third parties. Moreover, optionally, such communication takes place using tax compliance management system. Optionally, in this regard, all communication pertaining to the processing steps executed by the server arrangement is communicated by the server arrangement in real or near- real time to user devices of the employees and management bodies of the entity.

Optionally, the server arrangement is configured to communicate a tax compliance report to at least one person associated with the entity. In such a case, the at least one person is the company employee and/or third party (for example, such as an independent auditor). Optionally, the tax compliance report is communicated within the company according to a predefined reporting path. Notably, the reporting path refers to a path in which the information flow may be circulated from one level of the hierarchy to another level in the hierarchy. In an example, the report path the information flow may be circulated on a department level within the company.

The term, "compliance monitoring and improvement" refers to prerequisite for the monitoring and improvement for the tax compliance management system. In such a case, the requirement for the monitoring and improvement is sufficient documentation of the tax compliance management system. Notably, the documentation is prepared to record results of compliance monitoring and improvement. Moreover, optionally, the server arrangement is configured to employ at least one artificial intelligence algorithm for analysing a large volume of data to identify key compliance requirements, thereby improving the tax compliance of the entity.

It will be appreciated that the plurality of conceptual parameters are optionally derived from basic elements of the IDW PS 980 standards for tax compliance. Notably, the IDW PS 980 standards are employed to provide an efficient tax control framework for the entity. Notably, such plurality of conceptual parameters form a conceptual basis of the tax compliance management system.

The automated or semi-automated tax compliance management system is used to group the plurality of tax compliance checks into the at least one tax compliance scenario. Notably, the plurality of tax compliance checks are grouped in order to organize and structure the plurality of tax compliance checks. In an example, the plurality of tax compliance checks for example, such as paying advance income tax, claiming tax relief in name of charitable work, and the like may be grouped into a single tax compliance scenario that pertains to income tax. It will be appreciated that grouping the plurality of tax compliance checks into the at least one tax compliance scenario is a technical data processing step performed by the server arrangement. The at least one tax compliance scenario so generated technically facilitates the system in efficiently managing tax compliance of the entity.

Throughout the present d isclosure, the phrase "tax compliance scenario" refers to a collection of the plurality of tax compliance checks pertaining to a similar tax concept. Examples of tax concepts include, but are not limited to a type of tax (for example, such as a d irect tax, an indirect tax, and the like), a nature of tax compliance checks (for example, such as necessary compliance checks, recommended compliance checks, and the like) .

It will be appreciated that the at least one tax compliance scenarios are specially curated (via technical data processing) and are comprehensive. As the at least one tax compliance scenarios may relate to tax concepts, which may be really varied due to diverse nature of taxation, therefore different scenarios can be evaluated differently, using specialized information pertaining thereto. In this regard, the way of compliance with different scenarios can be different, for example payment of indirect taxes is different from payment of direct taxes. Beneficially, the at least one tax compliance scenarios function as basic elements of the tax compliance and therefore simplify the complex procedure of tax compliance management.

Optionally, a similar set of the plurality of tax compliance checks pertaining to the entity may be grouped into the at least one tax compliance scenario. Notably, essential compliance checks pertaining to the entity may be g rouped into the at least one tax compliance scenario. And non-essential compliance checks pertaining to the entity may be grouped into the at least one tax compliance scenario. In an example, compliance checks such as VAT declaration and preparing a VAT return may be grouped into a VAT tax compliance scenario for VAT reporting . In another example, compliance checks such as reporting of documentations pertaining to the entity, reporting of documentations pertaining to the vendor associated with the entity, and the like, may be grouped into a tax documentation compliance scenario.

Optionally, the plurality of tax compliance checks are grouped into the at least one tax compliance scenario based on at least one predefined criterion. More optionally, the at least one predefined criterion is at least one of: a nature of business conducted by the entity, geographic location(s) whereat the entity conducts business, a time at which tax compliance is conducted, a time period for which tax compliance is to be conducted, a type of tax for which tax compliance is to be conducted .

Examples of the nature of business conducted by the entity may include, but are not limited to a business owned by an individual, a business owned by a plurality of individuals who share responsibilities, a fully- independent business with shareholders, a business that uses its profits for charitable purposes and a business owned and operated for the benefit of the members of the organization that use its services. Examples of the geog raphic location(s) whereat the entity conducts business may include, but are limited to a given country (for example, such as a single region in the given country, a plurality of regions in the given country) and a plurality of cou ntries. As an example, the server arrangement may create 10 tax compliance checks pertaining to a multi ^¬ national corporation that operates in 2 countries 'X' and Ύ'. In such an example, 6 tax compliance checks pertaining to the country X may be grouped into one tax compliance scenario, whereas 4 tax compliance checks pertaining to the country Y may be grouped into another tax compliance scenario.

Examples of the time period for which tax compliance is to be conducted include, but are not limited to weekly, monthly, quarterly and yearly. In an example, the time period for which tax compliance may be cond ucted on quarterly basis. In such an example, the tax compliance may be conducted after every three months for example, such as January to March, April to June, July to September and October to December. In another example, the time period for which tax compliance may be conducted on half yearly basis. In such an example, the tax compliance may be conducted after every six months for example, such as April to September and October to March. In yet another example, the time period for which tax compliance may be conducted on annual basis. In such an example, the tax compliance may be conducted for a complete financial year that is twelve months for example, such as April to March.

Examples of the type of tax for which tax compliance is to be conducted include, but are not limited to direct taxes (for example, such as income tax, corporate tax, wealth tax, and the like) and indirect taxes (for example, such as sales tax, service tax, value added tax, excise duties, custom duties, and the like) .

Furthermore, optionally, the plurality of tax compliance checks are grouped into the at least one tax compliance scenario based also on : the plurality of participation levels of the entity, the plurality of modules of the tax compliance management system. It will be appreciated that the at least one tax compliance scenario would pertain to involvement of person(s) from at least one participation level of the entity, the involvement being defined in accordance with the plurality of modules of the tax compliance management system.

Optionally, the server arrangement is configured to group the plurality of tax compliance checks into the at least one tax compliance scenario using at least one artificial intelligence algorithm. Beneficially, by creating the at least one tax compliance scenario, the tax compliance management system provides a context-rich information for the plurality of tax compliance checks, thereby enabling transparency, traceability and auditability of tax information for the use of the real-time tax control system. Optionally, the server arrangement is configured to store tax compliance scenarios at the data repository. Beneficially, the data repository that is specially curated for the purpose of tax compliance management, is further enriched with the context-rich information of tax compliance scenarios. Additionally, beneficially, the data curation is done in a technical manner, using at least one artificial intelligence algorithm, thereby reducing the time and effort in managing tax compliance.

The automated or semi-automated tax compliance management system is used to process the financial information of the entity to determine the extent to which the entity complies with the at least one tax compliance scenario. The phrase " financial information of the entity " refers to monetary (namely, money-related) information associated with the entity. Notably, examples of the financial information of the entity include, but are not limited to, income earned by the management of the entity, wages paid to the employees by the entity, value of assets purchased and/or sold by the entity, value of assets hired and/or rented out by the entity, expenses incurred by the entity, and donations made by the entity. Therefore, the financial information of the entity includes substantial detail regarding finances of the entity, which potentially serves as a starting point for tax compliance of the entity. Optionally, the server arrangement is configured to process the financial information of the entity to determine an extent to which the entity complies with the at least one tax compliance scenario using at least one artificial intelligence algorithm.

Optionally, the extent to which the entity complies with the at least one tax compliance scenario is computed as a percentage of compliance. For example, if an entity is liable to pay a Corporation Tax of amount X due at a given date according to the at least one tax compliance scenario, and the entity has paid only 70% of the total tax due according to the financial data, then the financial information may be processed to determine that the entity's extent of compliance is 70 percent.

Optionally, in the automated or semi-automated tax compliance management system, the server arrangement is further configured to trigger and execute at least one risk-mitigation task, based upon the extent to which the entity complies with the at least one tax compliance scenario. The term, " risk-mitigation task " refers to a given task that is to be undertaken on behalf of the entity to mitigate a given tax risk. In other words, the at least one risk-mitigation task refers a given task that substantially reduces the tax risks pertaining to the entity.

Optionally, the server arrangement is configured to employ at least one artificial intelligence algorithm for automatic triggering and execution of the at least one risk-mitigation task. Beneficially, the automatic triggering of the at least one risk-mitigation task provides a technical effect in that it automatically and intelligently addressing risks associated with tax compliance. Moreover, optionally, the at least one risk-mitigation task is to be undertaken by tax compliance management system. Automatically undertaking the at least one risk-mitigation task via technical means such as the server arrangement improves an accuracy and efficiency of execution of the at least one risk-mitigation task. It is noteworthy that such automatic data processing is facilitated by use of the curated and comprehensive data repository for tax compliance. In an example, the tax compliance management system may have identified an error in a tax return of the entity. In such an example, recalculation of data values in the tax return is required. As a result, the tax compliance management system may be employed to automatically generate a correct tax return for filing with relevant tax authority(-ies).

Optionally, a number of the at least one risk-mitigation task corresponds to a number of the at least one tax compliance scenarios that the entity is non-compliant with. In other words, greater the number of tax compliance scenarios that the entity is non-compliant with, greater is the tax risk for the entity, and thus greater is the number of the at least one risk-mitigation task to be undertaken by the entity. Upon undertaking said number of risk-mitigation task(s), the entity would beneficially comply with all its customized tax compliance scenarios.

Optionally, in the automated or semi-automated tax compliance management system, the server arrangement is further configured to trigger and execute a given risk-mitigation task for a given tax risk, based upon the extent to which the entity complies with the at least one tax compliance scenario. Notably, when the extent of compliance of the entity with the at least one tax compliance scenario is high, a number of risk- mitigation tasks are less. And, when the extent of compliance of the entity with the at least one tax compliance scenario is less, a number of risk- mitigation tasks are more. Therefore, there is an urgent need to execute all the risk-mitigation tasks for tax compliance of the entity. Moreover, optionally, an order in which the risk-mitigation tasks are to be performed is computationally devised by the server arrangement based upon extent of compliance.

In an example, an entity may obtain an invoice from a vendor for a domestic purchase that does not show VAT. In such an example, the at least one risk-mitigation task may be comparing of a paper invoice with a database record and/or requesting an invoice correction from the vendor. Moreover, such risk-mitigation task allows for checking regularly the invoices with highest potential VAT risk. Optionally, a given risk-mitigation task is performed by the server arrangement. Optionally, the given risk-mitigation task is performed by both the server arrangement and a person involved with the tax compliance management of the entity. More optionally, the server arrangement notifies the person about such risk-mitigation task. Furthermore, optionally, the server arrangement provides follow-up notifications to the person to ensure that such risk-mitigation task is completed by the person.

Optionally, in the automated or semi-automated tax compliance management system, the server arrangement is further configured to monitor a progress of the at least one risk-mitigation task. Optionally, in this regard, the server arrangement monitors the progress of the at least one risk-mitigation task by checking a real-time status of the at least one risk-mitigation task. In such a case, the server arrangement monitors the extent to which the tax risk is mitigated, via monitoring the progress of the at least one risk-mitigation task. Beneficially, such a monitoring can reduce the programming power involved and provides optimal results. Optionally, in this regard, the server arrangement is configured to employ at least one artificial intelligence algorithm to monitor the progress of the at least one risk-mitigation task. As a result, such a continuous monitoring of the progress of the at least one risk-mitigation task allows for identifying optimal execution of risk-mitigation tasks.

Optionally, in the automated or semi-automated tax compliance management system, the server arrangement is further configured to generate a tax compliance report for the entity. Beneficially, the generated tax compliance report leverages a tax control function to the next level of indirect tax automation and permanent risk cycle. Notably, the tax compliance report is a formal document that provides a detailed information associated with tax compliance status of the entity. Moreover, the tax compliance report includes a detailed analysis of the plurality of tax compliance checks, the at least one tax compliance scenario and the extent to which the entity complies with the at least one tax compliance scenario.

In an example, a VAT supply chain data associated with goods movement from a company to the customer can be effectively monitored. In such an example, the plurality of tax compliance checks may be validation of the correct VAT reporting country, time period to record intercompany transactions, correct VAT rate used or not, verification of the VAT return with the system data and additional tax applicable or not. Moreover, the plurality of tax compliance checks for example, validation of the correct VAT reporting country, time period to record intercompany transactions can be grouped into the at least one tax compliance scenario for example, such as intercompany invoice. Further, the plurality of tax compliance checks for example, correct VAT rate used or not, verification of the VAT return with the system data and additional tax applicable or not can be grouped into the at least one tax compliance scenario for example, such as intercompany invoice and the customer invoice. Moreover, in such an example, the tax risk may be incorrect application of regulations for intracommunity chain transactions based on the generated tax risk assessments. Furthermore, the tax risk-mitigation based on the extent to which the entity complies with the at least one tax compliance scenarios may be executed. In a first case, when the regulations for intracommunity chain transactions are incorrect, apply the correct regulations and update the VAT rate. In a second case, when the regulations for intracommunity chain transactions are correct, continue with the next transaction.

Optionally, the server arrangement is configured to reconcile the plurality of tax compliance checks. More optionally, the server arrangement is configured to represent, via an interactive user interface, a progress of the tax control function in order to monitor the tax compliance of the entity. Notably, a functionality of the tax compliance management system is to identify errors in the tax control functions for example, such as the entering of suspicious documents in the system. Moreover, such suspicious documents are easily viewed using the interactive user interface without any need to undertake a separate process, thereby enabling automated routing of at least one risk-mitigation tasks to resolve errors in the tax control function.

Optionally, effectiveness of the tax compliance management system is determined based upon a certification by the auditor. Notably, the auditor checks the extent to which the entity complies with the rules of the tax law and regulations in order to certify proper instalment of the tax compliance management system in the company. Moreover, such certification guarantees that the entity is paying as well as imposing proper taxes pertaining to the rules of the tax law and regulations, thereby enabling transparency in the company. As a result, provide protection to the management of the entity from accusations of tax evasion and reduction. Beneficially, the tax compliance management system is intelligent. In such a case, when the system detects any errors in the tax compliance of the entity, the tax compliance ma nagement system makes required corrections on its own. Moreover, the tax compliance management system also allows the user to correct the mistake found in the tax compliance of the entity.

Optionally, the automated or semi-automated tax compliance management system is supported by a web-based software platform. Such a web-based software platform can be understood to be a "Tax Suite" that provides customized tax compliance solutions to at least one entity. Notably, such a web-based software platform comprises a plurality of web applications, wherein the plurality of web applications are modular and combinable to implement the three-dimensional framework model of the tax compliance management system. In other words, the web-based software platform provides at least one IT based solution for implementing the automated or semi-automated tax compliance management system. Moreover, the at least one IT based solution is accessible by different employees of the entity, that participate at different participation levels within the modelled three-dimensional framework of the tax compliance management system. In an example, components and libraries used in development framework of the Tax suite may be Microsoft ASP. NET MVC, JavaScript, Kendo MVC, jQuery, d3, Newtonsoft.JSON, NHibernate, N inject, Commons. Logging, NLog, and the like.

Optionally, the server arrangement is configured to implement the information pertaining to : the conceptual basis of the tax compliance management system, the plurality of participation levels of the entity, the plurality of modules of the tax compliance management system, into an interactive web application. In other words, the aforesaid information can be implemented as part of the "Tax Suite". The interactive web application can be accessed by people associated with tax compliance of entity.

Optionally, interactive web application is used for training of a target group. For example, training modules can be interactive and can include videos, literature, audio, or a combination thereof for training . The interactive web application can be accessed by people, namely employees and/or aud itor, associated with the entity. The interactive application facilitates in quick, effective and optionally even collaborative learning of the target group.

Optionally, the plurality of web applications access the data repository on shared basis, thereby allowing overarching module administration and advanced data analysis capabilities within the tax compliance management system. Beneficially, in such a case, the tax compliance management system recommends suggestions for actions in a real-time, thereby accelerating in the medium term based upon downstream processing due to the application of artificial intelligence methods and a massive change in the tax perspective.

Optionally, the web-based software platform is based on a common software development process and a sophisticated technical development framework. Notably, such software is implemented by way of a web application. Moreover, it uses an object-relational mapping library to work with domain model objects and map them to relational data tables. Furthermore, such application is also utilized to execute background jobs, for example, for sending e-mails to responsible users that have a task with a due date at risk.

It will be appreciated that the automated or semi-automated tax compliance management system automates a process of tax compliance of the entity, thereby increasing efficiency of the tax compliance process. Moreover, optionally, an extent of automating the process is different depending on the complexity of tax requirements of the entity. Optionally, the tax compliance management system performs specialized and complex data processing tasks pertaining to tax compliance management. Moreover, the tax compliance management system utilizes the curated data repository for intelligently performing the data processing tasks to improve, a time, accuracy and efficiency of performing said tasks.

Optionally, the automated or semi-automated tax compliance management system allows a real-time tax compliance of the entity based upon analysis of historical tax data pertaining to the entity and current of tax requirements of the entity.

Optionally, in the automated or semi-automated tax compliance management system, the server arrangement is configured to store, at the data repository, information related to tax compliance management. More optionally, such information is stored by way of a document. Notably, the document is referred to as " feature specification document". Moreover, such document includes information for example, such as a historical tax data pertaining to the entity, user data of the entity, data associated with links to existing IT solutions, and the like. In this regard, the data repository is further enriched with the context-rich information, in form of documents. Such documents may further be used by the user of the tax compliance management system for various purposes, including but not limited to, tax compliance rules and/or regulations, guidelines, training document, and so forth. Optionally, in the automated or semi-automated tax compliance management system, the server arrangement is configured to provide the tax control framework based upon the feature specification document.

Optionally, in the automated or semi-automated tax compliance management system, the server arrangement is further configured to monitor the risk control matrix. Optionally, in this regard, scheduled monitoring and documentation of the tax risk (using the risk control matrix) is done, thereby allowing for continuous evaluation of the risk control matrix from a tax risk centre. Beneficially, an up-to date proof of the implementation and ongoing improvement of the tax compliance management system is provided to the user.

Optionally, the tax compliance management system provides updates for workflow of the risk control matrix. More optionally, the tax compliance management system provides an authorization concept, versioning and archiving of the risk control matrix. Furthermore, optionally, the tax compliance management system facilitates processing of documentation and management of the entity.

Optionally, the tax compliance management system provides efficient monitoring of implementation and ongoing adaptation of the compliance program More optionally, the tax compliance management system facilitates transparency of responsibilities and monitoring thereof.

Optionally, in the tax compliance management system, the server arrangement is configured to represent, via an interactive user interface, analysis and monitoring of the tax control functions of the tax compliance management system.

Optionally, the server arrangement is configured to execute a compliance risk information system. Optionally, in this regard, the server arrangement provides the entity with questionnaires pertaining to at least one tax jurisdiction to determine tax risks. Notably, the compliance risk information system provides documentation of tax risks and calculation of the tax control function. Moreover, the compliance risk information system employs decentralized data collection by local companies and central data analysis for authorization concept, workflow, versioning and data archiving . Furthermore, such a system minimizes error and increase efficiency through automation. Optionally, the compliance risk information system is implemented via one-time web-based application. Such web-based application is updated regularly hosted on client server or in tax cloud .

Optionally, the server arrangement is configured to analyse a registration data pertaining to VAT registration data and their preparation. Optionally, in this regard, the server arrangement is configured to represent, via an interactive user interface, analysis of the registration data pertaining to VAT reg istration data and their preparation along with a plurality of compliance tests. Moreover, the plurality of compliance tests provides the input and output side trend analysis. Beneficially, such a representation of the aforesaid analysis enables transparency in the processing, thereby allowing for efficient use of standard ized analysis and visualization tools with customizable views and compliance tests.

Optionally, the server arrangement is configured to query on the quality of data pertaining to a business partner of the entity. In an example, such a query may be validation of a GST ID of the entity. Moreover, such a methodology promotes active participation of the client in the project, thereby allows for immediate entry into VAT Analytics at a manageable cost. Optionally, the server arrangement is configured to monitor such VAT reporting data periodically.

Optionally, the server arrangement is configured to automate preventive measures of the tax compliance program. Optionally, in this regard, the server arrangement is configured to automate plausibility checks of the tax compliance program. Moreover, the tax compliance program comprises process integrated controls.

Optionally, the server arrangement is configured to monitor technical controls of the tax compliance prog ram using the process integrated controls. Moreover, such monitoring allows for systematic evaluations on special features, thereby providing control of business transactions for manual review. The manual review of the provided tax control framework for the entity is optionally performed by the aforesaid user of the tax compliance management system .

Optionally, the tax compliance management system comprises a plurality of preconfigured solutions that allows entities to put tax compliance into productive operation in an effective and time-saving manner. As a result, such preconfigured solutions allow for end -to-end solution for the integrated monitoring of tax data. Moreover, the tax compliance management system provides a convenient administration of a test report. Such test reports are generated with targeted test routines and proper assessment of taxable transaction documents. Furthermore, such preconfigured solutions enable controlled processing of tax corrections throughout the organization.

More optionally, a combination of such preconfigured solutions allows for establishing an operational and effective tax control framework.

Optionally, the server arrangement is configured to create and submit a pre-registration and declaration pertaining to VAT. Notably, such a pre- registration provides a uniform quality standard with regard to data compilation, reporting & documentation. Moreover, processing such as mapping into the form, validation and data transfer is in a form of electronic proof of the 4-eyes principle, thereby minimizing the errors and increasing efficiency through automation Group-wide transparency of the status of the declarations.

Optionally, the server arrangement is configured to create IT-based transfer pricing documentation. More optionally, the server arrangement is configured to manage such documents. Furthermore, calculation and benchmarking of indicators are automated using at least one artificial intelligence algorithm. Such calculation and benchmarking of indicators allow for analysis of complex economic standard . Moreover, additional individual analysis is also possible. Furthermore, uniform and globally consistent transfer pricing documentation allows for authorization concept and data archiving . Examples of features of such documentation include, but are not limited to consideration of local requirements; transparent process and centrally available further documents in case of queries by the company audit and efficiency gain throug h automation.

Optionally, the server arrangement is configured to report errors associated with standard requirements (for example, such as Organisation for Economic Co-operation and Development (OECD)) by way of country by country reporting (CbCR) . Moreover, such reporting of errors enables timely and efficient data provision by the local units and group-wide data transparency, thereby providing consistent data reporting to the tax authorities. Furthermore, functionalities of CbCR includes but are not limited to compilation, validation and transmission of required data; support of data collection through import interfaces to the financial systems; analysis of visualized data ; and authorization of concept, workflow management, data archiving . Optionally, the server arrangement is configured to report a correct tax calculation. Moreover, uniform quality standard with regard to the tax calculation is to be maintained in annual financial statements pertaining to the entity. Furthermore, the server arrangement is configured to provide integrated financial statements and explanatory process possible. Moreover, functionalities of tax accounting and reporting includes, but are not limited to preparation of the tax calculation (for example, such as actual and deferred taxes includ ing notes) according to the standard requirements pertaining to the tax jurisdiction; data acquisition (for example, such as data import, mapping, and the like) ; and data processing (for example, such as, calculation, validation, data transfer, true-ups, and the like).

Optionally, the server arrangement is configured to generate income tax return and balance sheet. Moreover, uniform quality standard with regard to the calculation process and documentation of the tax return and balance sheet is to be maintained . Furthermore, functionalities of the generation of income tax return and balance sheet include but are not limited to creation and electronic submission of the income tax return including balance sheet; data acquisition (for example, importing of data, mapping of data, and the like) ; and data processing (for example, calculation, validation, data transfer, balance sheet development, and the like) .

Optionally, the server arrangement is config ured to support company ^¬ wide tax controversy management. Moreover, the tax compliance management system provides an end to end solution for tax, thereby allows transparency in international documentation and clear structured communication. Such tax compliance management system allows for digital and complete documentation supported by discard mechanisms; clear structure and quick access for new employees and tax consultants; clear separation of documents sent to the examiner and internals, for example, tax compliance scenario-based calculation lists; and dig ital availability and disclosure of tax related information.

Optionally, the sever arrangement is configured to provide a tax enabled employee resource planning (ERP) . In such a case, VAT tax code is determined using the modules of the tax compliance management system. Moreover, the server arrangement is configured to reconcile the VAT recording requirements of the transactions. Features of the tax enabled ERP include a detailed understanding of the business model and possible peculiarities as well as verification of business transactions in the system; definition of VAT-relevant parameters and system settings for optimized tax determination; support of IT or implementation of the concept for optimized and highly automated tax determination.

Optionally, the tax compliance management system comprises a VAT rating tool. Notably, such a tool controls an international VAT reporting processes, thereby allowing for transparency in all VAT reports. Moreover, the tool allows for flexible customizable functionality, thereby improving cash flow management. Features of the tool include, but are not limited to standardized processes for the preparation and transmission of all relevant VAT reports; predefined data checks for detection of anomalies and errors; information management between tax function and authorities; and versatile functionality for example, mapping of unions and documented execution of manual corrections.

Optionally, the tax compliance management system comprises another tool for calculation of wages and sales tax. Notably, such a tool allows for a direct multi-level workflow including role-based authorization system. Beneficially, it provides various options for extensive evaluation, thereby allowing user-friendly data acquisition. Example for usage of such a tool include nut are not limited to timely recording of facts, ongoing monitoring of costs, standardized and automated evaluation; minimization errors and increase efficiency through automation; dismissal of the executive board through structure and process organization (processes, instructions, controls) and determination of need for action with the aim of whether there is a need for adjustment from a tax and technical point of view. It will be appreciated that the aforesaid complex data processing steps, which are efficiently implemented by the specially configured server arrangement described herein. Said steps are implemented time efficiently to process an enormous amount of data . Furthermore, the server arrangement is not limited to use in financial domain only, such as for example providing the tax control framework for the entity, and can be employed for data acquisition, recording and processing in various domains (for example, such as healthcare, telecommunication, information technology, automobile industry, pharmacy industry, food industry, and so forth) for a plurality of use cases, for example for managing compliance requirements in retail environments, manufacturing environments, and the like. Data aggregation and data processing principles employed in the system described herein can be used to design systems for managing compliance requirements in the various domains. In a g iven use cases corresponding to a given domain, use case-specific compliance checks can be created and grouped into use case-specific compliance scenarios, and then use case-specific information can be processed to determine an extent of compliance with the case-specific compliance scenarios, based on similar data aggregation and data processing principles as those employed in the system described herein. Examples of the plurality of use cases include, but are not limited to, managing product compliance with respect to manufacturing specifications in a manufacturing environment, manag ing procedural compliance with respect to inventory management in a retail environment, and managing procedural compliance with respect to provision of specialized medical treatments in a hospital environment. Therefore, a person skilled in the art would be able to acknowledge that the system and method of the present disclosure describe specialized data processing operations pertaining to tax compliance management, that overcome substantially the perceived problems of data management, data processing, data updation, and the like, in conventional tax compliance measures, as opposed to merely circumventing said problems.

The present disclosure also relates to the method as described above. Various embodiments and variants disclosed above, with respect to the aforementioned first aspect, apply mutatis mutandis to the method . Optionally, the method further comprises using the tax compliance management system for:

analysing a plurality of conceptual parameters in respect of the entity to generate a tax risk assessment for the entity;

creating the plurality of tax compliance checks pertaining to the entity, based upon the tax risk assessment.

Optionally, the method further comprises using the tax compliance management system for monitoring tax requirements pertaining to the entity for generating the tax risk assessment for the entity.

Optionally, in the method, the step of grouping the plurality of tax compliance checks into the at least one tax compliance scenario is based on at least one predefined criterion.

Optionally, in the method, the at least one predefined criterion is at least one of: a nature of business conducted by the entity, geographic location(s) whereat the entity conducts business, a time at which tax compliance is conducted, a time period for which tax compliance is to be conducted, a type of tax for which tax compliance is to be conducted.

Optionally, the method further comprises using the tax compliance management system for triggering and executing at least one risk- mitigation task, based upon the extent to which the entity complies with the at least one tax compliance scenario.

Optionally, the method further comprises using the tax compliance management system for monitoring a progress of the at least one risk- mitigation task.

Optionally, the method further comprises using the tax compliance management system for generating a tax compliance report for the entity. DETAILED DESCRIPTION OF THE DRAWINGS

Referring to FIG. 1, illustrated is a schematic illustration of an exemplary network environment 100 wherein a tax compliance management system is implemented, in accordance with an embodiment of the present disclosure. Notably, the network environment 100 includes a server arrangement 102 including at least one server (depicted as servers 102A and 102B), a database arrangement 104, a communication network 106, and a user device 108 associated with a user of the tax compliance management system. The server arrangement 102 is coupled in communication with the user device 108 via the communication network 106. Moreover, the server arrangement 102 is coupled in communication with the database arrangement 104, said database arrangement 104 acting as a data repository that is accessible by the server arrangement 102.

It will be appreciated that FIG. 1 is merely an example, which should not unduly limit the scope of the claims herein. It is to be understood that the specific designation for the network environment 100 is provided as an example and is not to be construed as limiting the network environment 100 to specific numbers, types, or arrangements of user devices, servers, databases, and communication networks. A person skilled in the art will recognize many variations, alternatives, and modifications of embodiments of the present disclosure.

Referring to FIG. 2, illustrated is an illustration of a conceptual basis of the tax compliance management system, in accordance with an embodiment of the present disclosure. As shown, the conceptual basis of the tax compliance management system is constituted by a plurality of conceptual parameters, such as 'compliance culture', 'compliance objectives', 'compliance risks', 'compliance programs', 'compliance organization' , 'compliance communication' , and 'compliance monitoring and improvement' . Referring to FIG. 3 illustrated is an illustration of a plurality of participation levels of the entity in respect of the tax compliance management system, in accordance with an embodiment of the present disclosure. As shown, the plurality of participation levels of the entity in respect of the tax compliance management system are 'conceptual level' , 'control plane' , and 'operational level'. Different hierarchical levels of the entity are responsible are responsible for executing tasks pertaining to different participation levels, to properly utilize the tax compliance management system.

Referring to FIG. 4 illustrated is an illustration of a plurality of modules of a tax compliance management system, in accordance with an embodiment of the present disclosure. As shown, the plurality of modules of the tax compliance management system broadly comprise 'group tax directive', 'risk management' , and 'controller' modules. The group tax directive module manages a tax function for the entity, said group tax directive module comprising sub-modules such as 'tax regulations' , 'process documentation' , and 'training concept'. The risk management module manages a tax risk for the entity, said risk management module comprising sub-modules such as 'risk control matrix', 'ongoing monitoring' , and 'internal audit'. The controller module implements process-integrated control steps to ensure tax compliance of the entity, said controller module comprising modules pertaining to Information Technology (IT) based processes and manual process. The IT based processes are implemented as automated or semi-automated processes of the tax compliance management system. When the tax compliance management system is semi-autonomous, the controller module comprises work instructions and checklists to be utilized by at least one employee of the entity. The manual process comprises work instructions, checklists, and manuals to be utilized by the at least one employee of the entity. Referring to FIG. 5, illustrated is an exemplary schematic illustration of selected fields of action in a tax compliance management system, in accordance with an embodiment of the present disclosure. As shown, various fields of action in a tax compliance management system are depicted as hexagons. Notably, hatch-filled hexagons depict the selected fields of action, whereas un-filled (namely, blank) hexagons depict un selected fields of action. The various types of fields are 'value added tax' , ' ayroll tax', 'income tax' , 'transfer pricing' , and 'general tax compliance management system processes'. Hexagons 1, 2, and 4 pertain to the value added tax field. Hexagon 1 pertains to regulations for inclusion (namely, integration) of tax department guideline with the tax compliance management system, especially for new transaction types. Hexagon 2 pertains to transaction mapping on an input side and an output side of a transaction. Hexagon 4 pertains to work instructions for systematic assurance of a legally compliant control determination on the input and output sides.

Hexagons 5, 6, and 11 pertain to the payroll tax field. Hexagon 5 pertains to monitoring cross-border business travel to ensure full compliance with income tax and social security obligations. Hexagon 6 pertains to processes for checking assignment of external resources (for example, freelancers) with regard to bogus self-employment. Hexagon 11 pertains to processes for complete identification and registration for benefits (such as events, gifts, entertainment, and the like).

Hexagons 14, 17, 18 and 22 pertain to the income tax field. Hexagon 14 pertains to processes for complete identification of additional foreign income. Hexagon 17 pertains to work instructions and checklists to check requirements for provisions of income tax exemptions, their reason and their amount. Hexagon 18 pertains to site monitoring for timely identification of taxable business issues. Hexagon 22 pertains to work instructions to ensure full coverage of capital expenditures (for example, such as research and development costs).

Hexagons 19, 20, 21 and 23 pertain to the transfer pricing field. Hexagon 19 pertains to implementation of a uniform transfer pricing policy for all group entities. Hexagon 20 pertains to monitoring changes in an operating model of an entity for timely identification of relocation. Hexagon 21 pertains to regular monitoring of profitability of routine units. Hexagon 23 pertains to involvement of the tax department in the event of new transactions and intended price changes. Hexagons 3, 7, 8, 9, 10, 12, 13, 15, and 16 pertain to the general tax compliance management system processes field. Hexagon 3 pertains to a four-eye principle for non-automated process sections. Hexagon 7 pertains to staffing in quantitative and professional terms. Hexagon 8 pertains to a clear definition of responsibilities at process / subprocess level. Hexagon 9 pertains to a clear definition of interfaces in case of tax- exempt circumstances. Hexagon 10 pertains to monitoring concept for tax-relevant process steps and controls. Hexagon 12 pertains to a group tax directive and individual tax guidelines. Hexagon 13 pertains to a tax training concept inside and outside the tax department. Hexagon 15 pertains to documentation of taxation processes of the entity. Hexagon 16 pertains to mandatory escalation and reporting lines for reporting matters.

It will be appreciated that FIG. 5 is merely an example, which should not unduly limit the scope of the claims herein. It is to be understood that the specific designation for fields of action in a tax compliance management system is provided as an example and is not to be construed as limiting said fields to specific numbers, types or arrangements. A person skilled in the art will recognize many variations, alternatives, and modifications of embodiments of the present disclosure. FIG. 6 is an illustration of a permanent risk management cycle that is enabled by a tax compliance management system, in accordance with an embodiment of the present disclosure. Said permanent risk management cycle includes the following 5 steps:

Step 1 - 'Identification of risks',

Step 2 - 'Risk assessment' ,

Step 3 - 'Derivation of measures for future error/risk avoidance and process optimization' ,

Step 4 - 'Monitoring implementation of derived measures'

Step 5 - 'Fulfilment of reporting obligations'

The step 1 pertains to identification of deferred risks (for example, using a risk control matrix), identification of process-integrated control results, identification of control results of ongoing monitoring and internal audit(s), establishment of tax figures, identification of process optimization or improvements required to minimize risk, and the like.

The step 2 pertains to computation of risk assessment, for example, by way of mathematical formula(e), historical data, and the like.

The step 3 pertains to derivation of preventive and revealing measures for future error/risk avoidance and process optimization. Said preventive measures guarantee error-free tax declaration by an entity, whereas said revealing measures enable correction of incorrect/sub-optimal tax- related processes.

The step 4 pertains to monitoring the implementation of the derived measures, whilst also ensuring communication of said measures to relevant employees of the entity (for example, by training of the relevant employees).

The step 5 pertains to reporting details of at least one of the steps 1, 2, 3 or 4, to specific employees of the entity. As an example, the details of all the steps 1 to 4 are reported to members of an executive board and members of a supervisory board of the entity.

It will be appreciated that FIG. 6 is merely an example, which should not unduly limit the scope of the claims herein. A person skilled in the art wil l recognize many variations, alternatives, and mod ifications of embodiments of the present disclosure.

Referring to FIG. 7, illustrated are steps of a method of provid ing a tax control framework for an entity, in accordance with an embodiment of the present disclosure. At a step 702, a plurality of tax compliance checks pertaining to the entity are created at a data repository. At a step 704, the plurality of tax compliance checks are grouped into at least one tax compliance scenario. At a step 706, financial information of the entity is processed to determine an extent to which the entity complies with the at least one tax compliance scenario. The steps 702 to 706 are only illustrative and other alternatives can also be provided where one or more steps are added, one or more steps are removed, or one or more steps are provided in a different sequence without departing from the scope of the claims herein.

Modifications to embodiments of the present d isclosure described in the foregoing are possible without departing from the scope of the present disclosure as defined by the accompanying claims. Expressions such as "including", "comprising", "incorporating", "have", "is" used to describe and claim the present disclosure are intended to be construed in a non ^¬ exclusive manner, namely allowing for items, components or elements not explicitly described also to be present. Reference to the singular is also to be construed to relate to the plural.