KPMG Principal Paul Glunt discusses the implications of a digital center of execellent and tax planning in this informative video. Learn the answers to: What is a digital center of excellence? Why is “digital” such an important concept for global business today? How is tax planning in a digital center of excellence different than IP planning? And can a value chain management project that supports the digital center of excellence start outside of the tax department?
Why is digital such an important concept for global business today?
Paul Glunt: It's often said that digital is everything but also that everything is digital now it's affecting all businesses although in the future and probably 7 or 10 years, we will never talk about digital as being anything separate because it will be so integrated into everything that everybody does.
What is a digital center of excellence?
Paul Glunt: A digital center of excellence is a governance model that a lot of companies have utilized for no reason related to tax but really to manage risk strategy and controls over their digital transformation. They're becoming more and more important as companies especially traditional non technology companies are becoming highly digitized.
How is tax planning in a digital center of excellence different than IP planning?
Paul Glunt: What's really different is that digital assets are treated very differently from a tax perspective than traditional intangible property so characterization withholding taxes indirect taxes such as social services taxes are issues that you would not have to deal with otherwise.
How did clients benefit from KPMG's value chain management services?
Paul Glunt: What value chain management does is it brings teams together it ensures that we're bringing a holistic approach but that holistic approach isn't just tax it's also the operational management so integration of IT, HR and human capital footprint models building software development and business process models to really take a tax solution and integrate it into the business which is something that our clients tend to struggle with so we're kind of bringing that extended service.