Tax Management
Today corporations are faced with a false choice. Structure and manage their global operations for tax avoidance, or organise to pay a fair contribution to the countries in which they operate. The stakes are high for complex organisations – failing to manage taxation regimes worldwide can create an existential threat to multinational corporations and relying on external consultants just increases the risk.
Gent, Belgium-based, LocTax, approached Categorical believing that managing tax – over a third of the corporate world’s revenues – needs a new approach and a new platform. This is prescient as the value of tax professionals evolves from being tactical defenders of stakeholder returns to being strategic guardians of corporate ESG goals as transparent and fair tax payment becomes ever more important to internal and external stakeholders.
Once, in the tax minimization era, all that was required was a simple calculation. Ultimately, tax compliance in the tax transparency era depends upon decisions made in context by humans. But this was tax content that lacked tax context. Increasingly qualitative information is now needed to make expert and ethical judgements.
In-house tax professionals powered by context, not just calculations, can now make the big calls, acting as strategic business partners advising the C-Suite.
This insight informed Loctax’s Category Point of View which was designed and evolved into the Connect, Collaborate and Control framework that defined the purpose of the new Category.. In-house tax teams need to Connect with internal and external stakeholders, access relevant data, and stay up-to-date with essential regulatory information, Collaborate to streamline their operations by organising, automating, and standardising tax work, capturing essential data, documents, and audit trail for solid processes and take full Control through operationalized tax framework to establish rock-solid governance and obtain intelligence through daily tax activities.
This applied to three product offerings – Compliance Monitoring, Risk Management and Controversy Management all delivered in a compelling new Category – Global Tax Governance – a Category subsequently invested in by Index Ventures with support from Cavalry Ventures, Seedcamp and prominent angels including the CFO of Revolut and the CEO of Checkout.com.
Today world-leaders across industries including Agfa, Luxottica, Trainline and Wise now rely on Loctax Global Tax Governance.