Invenio P2P Solution Event for SAP Users, 22 May, London

We invite you to be part of our very own, not to be missed P2P event for SAP customers, introducing Invenio’s P2P Solutions on May 22, Churchill War Rooms

 

Procurement businesses globally are moving to a ‘self-service’ model. This model is about transferring the onus of managing the procurement relationship to the supplier.

Join senior business executives from both the Public and Private Sector, with responsibility for implementing web-enabled P2P strategies. These professionals are also responsible for internal cost reduction, making financial management easier, improving existing processes, & rebalancing the division of labour between internal staff and suppliers.

Learn to:

  • Reduce costs
  • Improved data accuracy
  • Better compliance
  • Improved supplier – customer relationship

Recognising this trend, for a ‘self-service’ model, Invenio – an SAP Gold Partner – has developed Invenio’s P2P Solutions, a procure-to-pay framework that can reduce the administrative overhead of a procurement organisation by up to 60%.

Invenio’s P2P Solutions has recently been implemented at the Universal Music Group – the world’s largest music company – across its offices globally spanning over 100,000 users.

Key people from Invenio and Universal Music will be talking about Invenio’s P2P Solutions – origin, evolution and benefits. There will also be an interactive Q&A discussion where you will be able to ask questions – technical and business related – and get answers from the experts.

Register Now! This event is not to be missed, see the full programme here, take a look at this action packed event.
Do you know of others who would be interested in such an informative and interactive event? Don’t hesitate to pass this on.

Let’s keep up to date and make progress and cost savings happen! We look forward to welcoming you in London on 22 May.

Warm regards,

Christine Cockerton
Marketing Manager

Invenio joins the G-Cloud Programme for Specialist Cloud Services

Invenio are pleased to announce that their application for the UK Government’s G-Cloud programme has been approved. The programme, currently in its 4th iteration, will enable Invenio to deliver a range of services in the “Specialist Cloud Services” category. The G-Cloud is an initiative designed to make the process of procurement easier for UK Public Bodies. The primary aims of the GCloud are:

  • To achieve large, cross government economies of scale.
  • To deliver ICT systems that are flexible and responsive to demand in order to support government policies and strategies.
  • To help Government bodies take advantage of new technologies in order to deliver faster business benefits and reduce cost.
  • To meet environmental and sustainability targets.
  • To allow government to procure in a way that encourages a dynamic and responsive supplier marketplace and supports emerging suppliers.

DfT Id templatesThe G Cloud online portal allows participating government organisations to buy pre-approved cloud-based digital services, thereby helping to circumvent the need for lengthy and costly procurement processes. Since its inception, the model has gained significant participation from the UK SME community, many of whom have previously avoiding participating in public sector tendering exercises due to a lack of internal resources. In a recent statement regarding the G Cloud, the Minister for the Cabinet Office, Francis Maude said “Our reforms to government technology are designed to ensure the best possible service for users at the lowest cost for taxpayers. To make this possible we need a truly competitive marketplace. SMEs are a source of innovation and a crucial engine for growth. We will continue to knock down the barriers that have prevented them from winning public sector work in the past. G-Cloud is a simpler, faster and cheaper way for the public sector to buy digital services. It allows companies of all sizes to benefit from our digital by default approach to government. I’m delighted that so many SMEs have won representation in this new iteration,” Being part of the G Cloud means that Invenio can assist public sector bodies in procuring a range of services more efficiently and cost effectively. Invenio is a Gold SAP Partner and a UK based SME specialising in SAP Consulting, Implementation and Support services, for both ‘on premise’ and ‘cloud’ based implementations. Our Public Sector practice is led by experienced SAP veterans with extensive experience in Public Administration and in providing tax and revenue management solutions to Central, Federal and Local Government Agencies worldwide. The team also includes experienced SAP Tax consultants with in-depth expertise in delivering projects to a growing public sector customer base. For more information you can visit govstore.service.gov.uk or contact us directly.

Isle of Man Leads the Way with Signing of new UK Tax Agreement

The Isle of Man has become the first British dependent territory to sign an agreement with the UK Government that extends the automatic disclosure of tax information. Under the accord, the two Governments have agreed to start exchanging information from 2016 on residents’ tax issues. This new deal will extend the current agreement which sees the Isle of Man already sharing information on personal savings income with the UK and other European Union countries.

Allen Bell, the Manx Chief Minister said: “In signing this historic agreement with the United Kingdom we are underlining the message to our neighbours and the wider world that our Island is a responsible centre for top quality international business”. He added: “Today’s signing is a significant step towards that global standard and further proof that the tax haven moniker in relation to the Isle of Man is well and truly dead”.

The UK Government is also seeking to agree a similar deal with the two other dependent territories of Guernsey and Jersey, although at the time of writing, neither has confirmed participation.

Regardless whether or not the term “Tax Haven” is fair, it is clear that many countries are stepping up efforts to force jurisdictions to reveal information on clients suspected of tax abuse. Earlier this year, The Financial Times reported that France has stepped up its assault on tax havens by blacklisting Bermuda, British Virgin Islands and Jersey, in a move that will impose heavy penalties on thousands of French individuals and businesses. The three offshore centres have been added to a list of “non-co-operative jurisdictions”, triggering punitive withholding taxes of up to 75 per cent on payments from France.

Why do these agreements matter?

So what is driving the many recent international efforts in curbing tax evasion? It is hard to quantify the impact of tax evasion on a country’s wealth but, given the estimates shown in the chart below, it is clear that fixing this problem would go a long way in helping to assuage the current austerity measures imposed by many governments to help see them through the most severe recession since WWII.

The Guardian recently published an article stating that the amount of tax lost within the UK through non-payment and avoidance increased last year to £35bn, (according to official figures released in October). What is even more shocking is a statement taken from www.taxresearch.org.uk – that tax evasion is costing the world $3.1 trillion a year – more than 5% of world GDP. The chart below is taken from the tax justice networks research into tax evasion, showing the top ten countries that were affected in 2011.

Tax-Evasion

 

Challenging times ahead

With tax avoidance schemes so widespread and disconnected, it is going to be years, maybe decades, before we can see a clear benefit to the new processes and laws that foster increased co-operation. But it seems things are moving in the right direction.

In a previous blog post – regarding the G20 sharing information Martin Sobotka discussed the huge data volumes that will need be processed and analysed. Technologies such as SAP HANA can help to consolidate huge amounts of information from many different sources, and the connectivity across both analytical and transactional systems can help to remove barriers and provide Governments with a key advantage in identifying data inconsistencies when analysing external tax information.

Martin Sobotka is an expert in Tax & Revenue Management solutions across all continents. For several years, Martin worked for SAP Consulting introducing SAP products to City Councils, Federal States and Government Authorities. He is a well-respected expert and focuses on the functional implementation of new SAP technology in this area.

To find out more on this subject you can contact Martin directly.

Global Co-operation in Combatting Tax Avoidance Grows…

According to a report by British accountant, Richard Murphy, tax evasion equates to some 18 percent of global tax collections. And, says Reuters correspondent David Cay Johnston in his blog post Where’s the fraud Mr President “Murphy’s $3 trillion estimate, 5 percent of the global economy, shows how a combination of weak rules on accounting and disclosure combined with inadequate budgets to enforce tax laws impose a terrible cost on honest taxpayers and the beneficiaries of government service”.

There are many types of tax avoidance that make up this estimate – some legal, many illegal – and, if recent reports are anything to go by, Governments are committed to increasing international cooperation to tackle the issue on a global scale…

China recently announced it has agreed to join the international effort by the Group of 20 leading economies (G20) to combat tax evasion by signing an agreement to share tax records. China’s decision means that all G20 countries now have agreed to cooperate on tax avoidance, a priority set by global leaders to address the causes of the 2007-2009 financial crisis and to help combat corruption.

The move follows the announcement in July 2013 which saw Finance Ministers from the G20 formally back plans to tackle international tax avoidance and evasion. The G20 has asked the OECD to come up with a plan to improve tax cooperation, with the Finance Ministers saying they “fully endorse the OECD proposal for a truly global model” of information sharing. The statement called on all countries to make automatic information sharing a reality “without further delay”, adding that “capacity-building support” would be provided for poorer nations.

One driver for this increased cooperation is the recent string of news headlines that allege many multinational firms are legally avoiding tax through the use of loopholes and tax havens. Recent high profile cases in the UK include firms such as Apple, Google, Amazon and Starbucks who have all been heavily criticised for the amount of tax they pay in the UK. Although these companies are at pains to point out that these schemes are legal and they have a duty to shareholders to minimise their tax bills, the proposed new rules, and improved cooperation between nations could see global giants paying more in the countries where they do business.

Tackling Fraud with SAP

A problem that’s just as difficult to address for Tax Agencies is that of individual or small-scale illegal fraud that can be difficult to detect. A recent article in Bloomberg’s Business Week about the world’s largest shadow economies (defined as “parts of the economy involving goods and services which are paid for in cash and not declared for tax”) said: “…in 2007, in 162 countries, an average of 35.5 percent of official gross domestic product slipped through the cracks—not counting any fruits from such illegal activities as drug dealing or organized crime”.

This kind of tax evasion not only damages the reputation of government agencies, but it also contributes heavily to ever-increasing budget deficits. Paying taxes is a cornerstone of a healthy economy and a “shadow economy” means Governments often lack the revenue they need to provide adequate public services.

With more and more citizens avoiding taxes by operating their businesses “off the grid”, advanced fraud detection technologies are becoming an increasingly popular method used by Tax Agencies to help combat the problem. SAP Fraud Management, for example, was announced by SAP in March 2013. In its announcement SAP said: “The solution can help Tax Agencies to reduce fraud and non-compliance by cross-checking tax returns or social service applications against millions of related data records in real time – giving tax officers increased capability to spot whether submitted applications match information from other data sources. By further applying predictive algorithms from SAP HANA on a large number of transactions, Revenue authorities can uncover hidden fraud patterns and produce alerts on suspicious transactions that might be missed by conventional fraud and compliance rules”.

The development of technologies that can assist Governments in analysing data on such a huge scale will be welcome news for those struggling to manage the deluge of data brought about by digitisation. John Schweitzer, senior vice president and general manager, Analytics, SAP said. “SAP Fraud Management powered by SAP HANA will enable enterprises to detect, investigate, prevent and monitor irregularities or fraud in environments with ultra-high volumes of data, from both SAP and non-SAP systems. With SAP HANA as its backbone, SAP Fraud Management aims to bring unprecedented processing capabilities.”

Improving the Collection Process with SAP Tax and Revenue Management

Invenio’s Public Sector practice is uniquely placed to offer a rapid, efficient and cost effective deployment of SAP Tax and Revenue Management solutions. Invenio helps Tax Agencies to create a stable foundation for the entire management of the tax and revenue management life-cycle across all tax types to aid efficiency of the entire collection process.

Tax Evasion, is SAP Tax and Revenue Management the Answer?

Curbing tax evasion has long been a priority for Governments globally, with Revenue Collection Agencies using increasingly sophisticated methods to detect possible fraud and recoup monies owed to help close the tax gap. Industry solutions like SAP Tax and Revenue Management can help Revenue Authorities to increase efficiencies in the collection process, but what else are Governments doing to help recover taxes owed?

As part of the British Government’s 2010 Spending Review, it was announced that an investment of £917 million would be made available to help tackle tax avoidance, evasion and fraud. This investment enabled the UK’s Tax Agency (HMRC) to increase the number of people focussed on these areas, enhance their skills, expand the use of third party data and develop tools that would help identify even the most hidden forms of tax evasion. In December 2012, the British Government reaffirmed this commitment by investing a further £77 million in HMRC avoidance and evasion work. This investment, it seems, is starting to pay off…

Earlier this month The Financial Times reported that the number of criminal prosecutions for tax evasion in the UK had more than doubled over the past year, as the HMRC stepped up its efforts to crackdown on individuals suspected of defrauding the Exchequer. Tax evasion prosecutions rose from 302 in 2011-12, to 617 in 2012-13, according to figures obtained by international law firm, Pinsent Masons. This increase, says The FT, reflects a pledge made by the British Treasury in 2010 to increase the number of tax prosecutions fivefold, in an effort to create a more robust deterrent against tax evasion.describe the image
Tax-EvasionDespite this increase in prosecutions, Pinsent Mason also reported that the number of incidences of serious tax evasion (evasion of tax totalling £50,000.00 or more) has actually dropped significantly. Last financial year, local HMRC offices identified 2,888 suspected cases of serious tax evasion – representing a 16% drop on the 3,456 cases that were identified in the previous year. This reduction, they say, was helped by an increase in anti-evasion efforts, including new powers to:

Impose penalties of up to 200% of the original tax owed if an individual does not declare any income or capital gains that has been hidden from HMRC in an offshore bank account.

Create taskforces to help prevent cases of serious tax evasion. For example, the Offshore Coordination Unit (OCU) coordinates HMRC’s analysis of the information it receives on UK taxpayers who have money concealed in overseas deposits.

Use ‘private sector’ experts to improve HMRC’s strategy and use of data to identify possible tax evasion.

Deliver high profile advertising campaigns which are designed to heighten evaders’ discomfort about not declaring all of their income.

An increase in the number of treaties with other countries is also thought to be assisting in efforts to catch tax evaders who hold their assets in offshore accounts. This includes deals with the governments of both Liechtenstein and Switzerland. Phil Berwick, Partner at Pinsent Masons said: “International co-operation has been stepped up significantly as HMRC strives to curb tax evasion. Tax evaders are now realising that HMRC has a much greater ability to tackle evasion, even if individuals conceal their assets abroad.”

Improving the Collection Process with SAP Tax and Revenue Management

Invenio’s Public Sector practice is uniquely placed to offer a rapid, efficient and cost effective deployment of SAP Tax and Revenue Management solutions. Invenio helps Tax Agencies to create a stable foundation for the entire management of the tax and revenue management lifecycle across all tax types to aid efficiency of the entire collection process. SAP Fraud Management has been designed as a platform solution to prevent fraud and non-compliance in various areas tackling the large volume of tax related data compiled in tax authorities.