Tax reporting with DefTax®

In the future even more companies will be faced with the challenge of implementing a suitable tax reporting process. While IFRS accountants have long been working intensively to determine tax items and generate relevant data for the consolidated financial statement, the German accounting law modernisation act has now extended the scope of these tasks for companies which prepare their balance sheet according to the German commercial code.

Problems in practice

The determination of current and deferred taxes is not coordinated and this leads to tax items which are not fully explainable.
The absence of knowledge of the important influencing factors means that changes to the group tax rate can only be explained with a great deal of time and effort.
The manual determination of deferred taxes with a low level of automation on the basis of Excel solutions is prone to error.

Our solution

In order to maximise synergy effects, we recommend carrying out a calculation of the current and deferred taxes for the purpose of the annual and consolidated financial statements and also for the purpose of the tax declaration in a system.

DefTax® is a system-based tax reporting software tool we recommend for the calculation of current and deferred taxes in the annual and consolidated financial statements acc. to the German commercial code, IFRS and US GAAP and for entry into the electronic balance sheet: