A Vision – enabled through Electronic Interface Standards Businesses and Tax Agencies, in concert with other Agencies, working together to create, use and exchange information that is useful, useable and timely Information supplied not part of natural system One solution fits all Cost of complying is increasing Duplicate information submitted to agencies Current world Future world Tax Info Stats Commerce Part of Natural System Customised for different businesses Timeless Bottom Up Translation … Two worlds growing together. Government aligning to the ‘standards’ adopted by businesses Work Collaborative to understand Business Accounting practice Use interface standards to make agencies part of businesses natural systems and accounting practice

An Egyptian tax receipt from the Ptolemaic period 320 to 32 BC. Tax agencies are historically and culturally fixated around a forms based approach to gathering information. Problems Less forms – more complex to fill in More forms – what form to use? A change of mindset – enabled through Electronic Interface Standards Electronic interfaces provide the ability to dynamically obtain information based on a clients specific obligations rather than a “one size fits all” approach Advantages combines information normally collected across multiple forms Forms based reporting Obligation based reporting

Electronic Interface Standards – Tax XML OASIS is a not-for-profit, global consortium that drives the development, convergence and adoption of e-business standards Tax XML is an OASIS committee that is defining electronic standards for communicating tax information. Goal to reduce interaction costs and enable improved business models Membership & Observers include –Tax administrations of: Australia, Canada, Germany, Hungary, Netherlands, UK and US –IBM, Microsoft, SAP, KPMG, PwC Joining the initiative ensures that your country is able to influence and use the standards to best effect.Joining the initiative ensures that your country is able to influence and use the standards to best effect.

OASIS Tax XML – Standards model Tax XML is trying to develop a standardised way of communicating electronically with the taxation community. Below is a model that represents accounting and taxation standards. International standards Broad agreement on accounting standards eg Statements of financial position and performance Example: International Accounting Standards (IAS) Tax XML are expanding these standards to cover tax specific information National standards Local standards Very localised, not agreed specific to company/organisation eg statement dates This is defined in XBRL (XBRL is an electronic communication language) This is not defined Tax XML and XBRL are based on XML – eXtensible Markup Language, a key enabling technology