Description: 'Tax Planning' as a Digital Business Capability refers to the ability of an organization to leverage digital tools and technologies to effectively manage and optimize its tax obligations. This includes the use of software for tax computation, digital platforms for tax filing, and data analytics for identifying tax-saving opportunities. It also involves staying updated with the latest tax laws and regulations through digital channels. This capability not only ensures compliance with tax obligations but also aids in strategic decision-making by providing insights into potential tax implications of various business strategies. Additional information: 'Tax Planning' Digital Business Capability refers to the ability of an organization to leverage digital technologies and systems to effectively plan, manage, and optimize its tax obligations and strategies. This capability encompasses a wide range of activities and processes, including the accurate calculation of tax liabilities, the timely submission of tax returns, the identification of tax-saving opportunities, and the strategic planning of business activities to minimize tax exposure. In a digital context, this capability may involve the use of advanced software and platforms that automate and streamline tax-related tasks, reducing the risk of errors and ensuring compliance with all relevant tax laws and regulations. It may also involve the use of data analytics and predictive modeling to forecast tax liabilities and identify potential tax planning strategies. Moreover, 'Tax Planning' Digital Business Capability also includes the ability to stay abreast of the latest changes in tax legislation and interpret how these changes may impact the organization's tax position. This requires a strong digital infrastructure that can quickly and efficiently gather, process, and disseminate tax-related information. In addition, this capability also involves the ability to effectively communicate and collaborate with various stakeholders, including tax authorities, auditors, and internal management. This may require the use of digital communication and collaboration tools, as well as the ability to present and visualize tax-related data in a clear and understandable manner. Overall, 'Tax Planning' Digital Business Capability enables an organization to manage its tax obligations more efficiently and effectively, leading to cost savings, improved compliance, and better strategic decision-making. Example: 1. Online Tax Filing Systems: Many public sector organizations, like the Internal Revenue Service (IRS) in the United States, have developed digital platforms that allow citizens to file their taxes online. These systems often include tools to help users understand tax laws and calculate their tax liabilities, thus aiding in tax planning. 2. Digital Tax Advisory Services: Some public sector organizations offer digital tax advisory services to help citizens and businesses plan their taxes. For example, the Australian Taxation Office offers a digital service called "ATO app" that provides tax and superannuation information. 3. E-Tax Payment Systems: Digital platforms that allow for the online payment of taxes can also be considered a part of 'Tax planning' capability. These systems, such as the Electronic Federal Tax Payment System (EFTPS) in the U.S., make it easier for taxpayers to plan and manage their tax payments. 4. Tax Simulation Tools: Some public sector organizations offer digital tools that allow taxpayers to simulate different tax scenarios. This can help them plan their taxes more effectively. For instance, the Canada Revenue Agency offers a digital tool called "Tax calculator" that allows taxpayers to estimate their tax bill under different scenarios. 5. Digital Tax Compliance Systems: These systems help taxpayers understand their tax obligations and plan accordingly. For example, the UK's HM Revenue and Customs has a digital service called "Making Tax Digital" that helps businesses get their tax right. 6. Tax Education Platforms: Digital platforms that provide tax education can also be considered a part of 'Tax planning' capability. These platforms, like the IRS's "Tax Withholding Estimator", help taxpayers understand tax laws and plan their taxes more effectively. Publisher: EIRA Team LOST view: OV-Digital Business Capabilities Catalogue Identifier: http://data.europa.eu/dr8/egovera/TaxPlanningCapability EIRA traceability: eira:DigitalBusinessCapability EIRA concept: eira:SolutionBuildingBlock Last modification: 2023-07-27 dct:identifier: http://data.europa.eu/dr8/egovera/TaxPlanningCapability dct:title: Tax planning (DBC)