When you try to find a quote to make a point, you never know where you will end up. Google is a rabbit hole, but this quote seems particularly poignant, albeit from an unlikely source.

“The inevitability of a situation is not relative; when we accept the outcome of a given situation as inevitable, then how we choose to deal with it is relative.”
― Matthew McConaughey, Greenlights

Take the global minimum tax, for example. From where we sit today, it’s absolute or, as Matthew puts it, inevitable. However, how a company chooses to deal with it is relative.

The problem with relative is that humans ignore the inevitable and kick the can down the road a bit. Weigh our options. But the longer we weigh our options, the fewer options we will have.

I have discussed global minimum tax with many companies, and the biggest challenge I see is related to the manual effort of compliance: large volumes of data from disparate sources, formulating necessary calculations, evaluating the results, and last and probably most important, creating a mechanism to do that forever.

Easy right?

To be honest, understanding and doing the calculations for BEPS 2.0 Pillar 2 is not the tricky part. It’s just math. The difficult part is creating a system to continuously and systematically manage the process. And with that in mind, everything becomes relative. You get to choose your own journey.

Our approach is to partner with your internal team and tackle the challenge head-on, creating an efficient solution to address all the pain points. The solution of choice is SAP Profitability and Performance Management (PaPM), configured to meet the needs of BEPS 2.0 Pillar 2 reporting.

What does this mean for you?

It means automation, transparency, and reduced manual effort. Our functional and technical team has successfully used PaPM to connect necessary data, establish the calculations, analyze for tax optimization, and provide the documentation needed for transparency. Ticking all the boxes to manage all the usual pain points:

• Understanding the requirements
• Implementing the calculations
• Reporting compliance
• Calculation storage & easy retrieval
• Manual processes

Want to learn more? Click here.

The inevitable is clear, and we can help you deal with it. So, the only thing left is to get started. With that, it seems appropriate to finish with a more famous Matthew McConaughey quote: “Alright. Alright. Alright.”