Exclusive: How CCH Integrator is evolving for BEPS Pillar Two

In an informative discussion, Andy Hung, Director of Enterprise Software (Head of Product) at Wolters Kluwer, shared insightful details about how technological solutions like CCH Integrator are advancing to meet the complex demands of modern tax compliance, including BEPS Pillar Two regulations.

CCH Integrator, described by Hung as a comprehensive corporate tax management platform, is designed to assist tax departments and professionals by providing a consolidated workspace for managing tax processes and obligations. "It exists to serve the tax department and also tax professionals in the advisory space or the tax compliance space," Hung explained, highlighting the platform's role as a one-stop shop for tax governance.

The conversation also delved into the significant role technology plays in managing the complexities introduced by BEPS Pillar Two, a component of the Base Erosion and Profit Shifting (BEPS) project led by the OECD. According to Hung, technology offers a consistent framework that enhances the efficiency and reliability of managing tax obligations. "Technology provides a framework that is consistent and is in many ways efficient as well for those that are impacted by BEPS Pillar Two," he stated, underscoring the importance of proven technology in ensuring data integrity and supporting sound business decisions.

Hung also outlined the broad user base of CCH Integrator, which includes multinational corporations and major advisory firms worldwide. This diverse clientele benefits from the platform’s capabilities to streamline reporting and compliance processes. "Our user base is far and wide in that we serve multinational corporations all around the world," Hung noted, adding that the platform caters to entities reporting under international financial standards.

Addressing the specific functionalities related to BEPS Pillar Two, Hung emphasized the software’s role in demystifying and integrating new global tax regulations into existing business workflows. "What we’re doing is actually just marrying up BEPS Pillar Two as part of the usual cadence and role and responsibility of the tax department," he clarified. This integration helps businesses manage potential exposure to additional taxes and penalties effectively.

Explaining the direct impact of BEPS Pillar Two, Hung highlighted its global reach, affecting approximately 140 countries with the goal of instituting a minimum tax rate of 15%. This initiative aims to prevent profit shifting to low-tax jurisdictions, thereby fostering tax fairness across international borders.

Looking towards the future, Hung discussed the proactive steps companies must take in response to the evolving tax landscape, especially with the new regulations already taking effect in some regions as of January 1st, 2024. "You need to be prepared to answer audit questions around them this year, even though you might not have any obligation to work that out and pay that until later or file," he advised, pointing out the importance of readiness for internal audits.

Hung finally touched on the significant strides made in educational outreach through webinars and partnerships with leading tax advisory firms. These efforts are designed to equip companies with the knowledge and tools needed to navigate the challenges posed by BEPS Pillar Two. "Our webinars have been really relevant. The feedback’s been extremely positive with the audience that have been attending," he shared, illustrating the commitment of Wolters Kluwer to leading the charge in providing cutting-edge solutions for tax professionals globally.

BEPS Pillar Two is going to bring an industrial shift around modern tax compliance, but with tools such as Wolters Kluwer's CCH Integrator, the changing landscape is certainly looking much more manageable.