SD-17.5 — Corporate Tax

Business Domain: BD-17 Corporate Services & Resources (Cross-cutting — corporate) · Applies: BOTH

Purpose

Manages the management company’s own tax as a corporate entity. SD-17.5 is the corporate-tax capability: it manages the firm’s corporation tax, computes and provisions the tax charge, runs the VAT and indirect-tax obligations, manages the transfer pricing across the firm’s legal entities, and files the firm’s own tax returns. It is the tax the firm owes as a business, not the tax that follows the money it invests. Indirect tax and transfer pricing are Service Operations within this Service Domain, not Service Domains in their own right — OpenIM’s hierarchy is deliberately shallow, and both belong to the firm’s single corporate-tax function.

It is not the tax of the portfolios, the funds and the investors — that is SD-17.4 Investment & Portfolio Tax. SD-17.4 is the tax of the portfolios; SD-17.5 is the tax of the firm as a corporate entity.

Service Operations

Manage corporation tax — compute the firm’s corporation-tax charge, provision it in the corporate ledger, manage the deferred tax, and file the corporation-tax returns.
Run VAT and indirect tax — manage the firm’s VAT, GST and other indirect-tax registrations, computations, recovery and returns.
Manage transfer pricing — set, document and defend the transfer-pricing policy for the transactions between the firm’s legal entities, and prepare the transfer-pricing documentation.
File the firm’s tax returns — prepare and submit the firm’s own corporate, indirect and entity tax returns, and manage the filing calendar.
Manage tax authority relations — manage the firm’s relationships, enquiries and audits with the tax authorities, and resolve disputes.

Inputs and outputs

Inputs: the closed corporate ledger from SD-17.1 Corporate Accounting & Controllership; the intercompany transactions and funding from SD-17.3; the firm’s legal-entity structure; the corporate-tax, VAT and transfer-pricing regulation.
Outputs: the corporate-tax position, the tax provisions, the VAT returns, the transfer-pricing documentation and the firm’s tax returns — consumed by SD-17.1 (the provisions drive accounting entries), SD-16.4 Financial Reporting & Disclosure, SD-16.3 Regulatory Reporting & Filings and the tax authorities.

Entities

Consumes: the corporate ledger from SD-17.1; the intercompany data from SD-17.3; E-01 Legal Entity (the firm’s own entities).
Owns: the firm’s corporate-tax position and tax-return record — a process artefact.

Standards

The corporation-tax regimes of the firm’s jurisdictions of incorporation and operation.
The VAT / GST and indirect-tax regimes.
The OECD transfer-pricing guidelines and the local transfer-pricing rules and documentation requirements.

Open extensions

The corporate-tax versus investment-tax sub-model and the boundary with SD-17.4.
The transfer-pricing documentation sub-model.
The Service-Operation-level input/output contracts with SD-17.1.