Core Services

DTS Services Tax Manager 1

Tax Manager 1 ("TM1") is our proprietary tax modeling tool that we utilize in the delivery of our transaction tax co-sourcing services. Our core service offering, which is based on batch extracts from the host procurement systems, utilizes the actual data attributes of each independent purchase to determine true taxability. This methodology ultimately yields the most accurate taxability decision available in the marketplace today.

During the initial setup, we work with a combination of your tax, procurement, billing, IT infrastructure, and G/L accounting departments to define the exact requirements needed for the tax data extraction process (typically from ERP systems such as Oracle, SAP, J.D. Edwards, etc.). This extraction process, designed to run at specifically defined intervals, will produce the necessary output files that will automatically be transmitted, via a secure file transfer protocol, to our world-class data center.

Once received, the data files are immediately cataloged, imported, processed, and reconciled. TM1 then automatically applies a taxability decision to all procurement transactions by creating a tax policy mapping between the specific tax law and the accounting distributions assigned to the transactions. We commonly refer to this as our Tax Decision Logic (TDL). Furthermore, each TDL is proprietary to DTS and is uniquely configured for each of our clients during initial implementation.

Once processed, our experienced team of transaction tax professionals initiates a series of client-specific analytics on the data. TM1, unlike the current tax engine technologies, will not apply tax defaults in the case of any unmapped tax policy. Instead, the system is configured to "flag" all such transactions, which will then be reviewed and manually processed by a DTS tax professional. Furthermore, since the TDL is updated in conjunction with the processing of each flagged transaction, it allows the solution to continually enhance the accuracy of the overall service.

We then provide the results of the analytics, flagged transaction processing, and TDL configuration updates back to our clients through interactive reporting, presented through a secure Web portal. At the end of each reporting period, we provide pretax accrual reporting back to the client for review and approval. Once approved, we execute a reverse batch process generating the tax liability file, which can then be automatically uploaded into the client’s general ledger system.

Ancillary Services

Audit Controversy
Since DTS is run solely by dedicated and highly experienced transaction tax professionals, our clients can engage our tax professionals, either on an hourly or contingent basis, to defend their transaction tax audit assessments.

Reverse Audit
Even though our TM1 solution virtually eliminates the need for future reverse audits, we realize a need will remain for all statutory periods leading up to the execution date of our solution. Since all of our tax professionals have extensive experience performing such audits, we can either perform this service on our client’s behalf or recommend one of our partners to assist.

Tax Planning
Our tax professionals have more than 45 years of dedicated transaction tax planning experience, most coming from Big 4 consulting. As such, we can offer sound advice on how to structure certain activities and/or how to treat certain events for transaction tax purposes.

Voluntary Disclosure
Many of our tax professionals have performed numerous Voluntary Disclosure Agreements (VDAs) over the course of their careers. Therefore, we can offer our clients with a cost effective solution for coming into compliance in certain applicable tax jurisdictions.