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Chaos to Control: Coherent Corp. Unifies Tax Operations Post Acquisition 

Challenge

Following multiple acquisitions, newly formed Coherent Corp. faced the formidable challenge of unifying tax operations across the globe. More than ten ERP systems, short-period returns, a widescale restructuring project, and challenges arising from tax reform complicated every component of the recently combined tax lifecycle. 

Provision and RTP  

Historically, the company’s provision and RTP processes were entirely manual. Underlying book-to-tax adjustment data was incomplete or inconsistently presented, and workpapers leaned on assumptions from prior year workflows. The review process relied on static, heavily annotated PDF files, which prevented data-driven analysis and robbed time from meaningful planning and discussion. 

A new acquisition only served to further complicate matters as the newly acquired company had inefficiencies of its own. They utilized large and unwieldy Excel workbooks, which were more dynamic than PDF files, but still manual and inflexible. Team members in California led quarterly provisions and the German group handled complex European tax matters, leading to gaps in coordination and communication. Consolidations were cumbersome and planning and analytics deserved more attention here as well. 

International and Federal Compliance  

International compliance preparers struggled with disconnected source data that fed offline models and workpapers, and they populated certain information by hand. Data transparency and audit trails were limited, and the team raced against the clock every year. Between scattered data, manual entry, and limited transparency, e-filing required intensive reviews and time-consuming corrections. 

The incoming team from the recent acquisition outsourced its federal and international compliance processes. However, they did the lion’s share of the work themselves before the provider populated the return — at a cost that outweighed the value.  

As Coherent Corp. continued to add entities and take on complex transactions, the hybrid process grew even more convoluted. Adding fuel to the fire, recent resource challenges stemming from bigger workloads, turnover, and retirements underscored the need for automation and efficiency.  

Solution

Recognizing the varying sets of adjustments for the global provision and the need for a more structured, linear process, Coherent Corp. created a master tax package template for all foreign and domestic entities, accompanied by a detailed user guide for project owners. This would allow each subsidiary to prepare tax provisions in accordance with a prescribed format and centralize review and analysis with tax headquarters. 

Within the provided packages, the team could embed CSC Corptax® Office templates to automatically pull data for the tax provision and RTP from furnished information and push it into Corptax with a single click. This would enable preparers to do comparative analyses across entities and jurisdictions and spot anomalies — and permit tax headquarters to control and streamline the process.  

They used Corptax Office to: 

• Create simple, standardized workpapers, so anyone could automate dataflow into Corptax 

• Run the new process in parallel with the old process to ensure they got to the same results 

• Run reports with Office POV for real-time validation that data in Corptax aligned with offline workpapers, automating an important review task 

The team also used Corptax Office POVs to achieve and integrate instant tie-outs between data residing in Corptax and their offline workpapers. An added benefit: Corptax Office templates would allow the team to effectively use Corptax multi-year RTP functionality much more effectively than the prior RTP process. With so many jurisdictions having multiple open years, short periods, and audit adjustments, this functionality proved vital. 

On the compliance side, Coherent Corp. merged legacy compliance processes into one standard process by implementing CSC Corptax® International Compliance with the guidance and support of CSC Corptax® Professional Services.  

Results

Coherent Corp. now has a uniform provision process for every single entity and drastically cuts time spent reviewing quarterly and year-end provisions. Further, subsidiary-level preparation allows for more robust discussions around underlying data and its treatment at both local and tax HQ levels. Posted provision data accelerates prep and planning for federal and state teams. 

Compliance-wise, Coherent Corp. experiences more accurate preparation, integrated FDII and Form 1118 calculations, and optimized reviews, while embedded Corptax Office templates enhance speed and efficiency. Standardization lets staff seamlessly shift roles and cover multiple responsibilities as needs dictate. The new workpapers also ensure accuracy with Hyperion numbers as well as with Corptax data — and the team has a backup for all complex calculations with variances highlighted immediately. 

International postings automatically flow to domestic federal, state, and provision groups – including provision adjustments – dramatically accelerating reporting for all groups. 

And, centralized automation not only streamlines data management and compliance checks, but improves accuracy and auditability, making e-filing faster and more reliable. 

All in all, Coherent Corp.: 

• Conserves nearly $700K insourcing compliance  

• Cuts provision prep and initial review from 200 to 20 hours 

• Saves 100s more hours of manual input and data manipulation for compliance 

• Devotes ample attention to review and accurately e-files with time to spare 

• Curtails workstream volatility, fortifies flexibility, and swiftly addresses new priorities 

As Coherent Corp. International Tax Senior Manager Jeremy Munza emphasizes, “By successfully integrating subsidiaries and cohesively merging tax processes, we’ve established a foundation to meet future change with agility and confidence.”  

Coherent Corp. is currently working closely with Corptax to automate its CbC and Pillar Two reporting processes.  

Manual to Modernized: Air Liquide Optimizes International Compliance 

Prior to 2020, Air Liquide struggled with a time-consuming international compliance process that limited their ability to conduct thorough analysis and efficient review of their foreign entities. Manually managing more than 140 complex foreign forms for two consolidated filings overwhelmed the team, requiring extensive time spent processing multiple imports, troubleshooting legacy calculation discrepancies, and reconciling amounts for each of the 100+ foreign entities. 

Inefficiencies around workstreams triggered rework, rekeying, and potential errors. This, in turn, resulted in long hours and prevented the team from analyzing and reviewing data in order to plan strategically — adding stress at the height of busy season. 

Recognizing the need for modernization, the international tax team wanted to find a way to streamline workflows, reclaim time for reviews, turn data into meaningful information, and eliminate the need for additional external resources. 

Solution

To accomplish these goals, Air Liquide implemented CSC Corptax® International Compliance with integrated Next Gen forms and workpapers.  

In the first year of implementation, the team developed a standardized workflow for each CFC, beginning with imports of foreign trial balances and adjustments using CSC Corptax® Office. Corptax Next Gen forms pull in calculated amounts to automate supporting workpapers – resulting in a streamlined prep and review process. In each of the following years, the team can then easily update their supporting workpapers for changes in form instructions by referring to the automated Corptax forms, which reflect the latest changes published by the IRS. 

In addition to leveraging time-saving automation in complex forms like the 5471 and 1118, the team developed analytics and models using foreign data extracted from Corptax’s International Diagnostics to better understand their data and gain deeper insights. Some examples of their in-house models include: 

• GILTI Analysis: Evaluates various scenarios related to GILTI inclusions and analyzes high tax exceptions for foreign entities to support informed decisions regarding tax obligations. This in-house model is built using inputs from the 951A international diagnostic report in Corptax. 

• CFC Stock Characterization: Characterizes CFC stock to allocate interest expenses accurately per regulatory requirements, streamlining overall compliance. This in-house calculation is developed using data points from various international and ownership reports in Corptax. 

Results

Through this initiative, Air Liquide streamlined and optimized their international compliance process. Now, Air Liquide gains insights into crucial calculations through international diagnostics, such as dividend look-through, E&P, and GILTI. They leverage this data to augment offline workpapers, significantly improving data quality and relevance for review. For example, the team can now download CFC data from the 951A Corptax diagnostic to feed their GILTI analysis model at any point in time, allowing management to understand how specific CFC inputs can lead to various tax impacts for the US filer. 

Using Corptax calculation logic, the team standardizes their workpapers for filings such as Forms 5471, 8990, and 8992. They also appreciate the speed with which Corptax implements IRS updates into the software, which gives them increased confidence in the quality of their international forms. 

Next Gen automation cuts form prep from an average of six hours to four hours per form, saving the team 280+ hours annually. The team also eliminates reliance on outside resources and reduces redundancy in reviewing multiple workflows. Air Liquide reallocates time-savings to focus on streamlined reviews and management reporting, analysis of foreign entity mergers and acquisitions, and preparation for potential impacts from legislative updates and changes. 

Automation also produces more reliable tax filings and makes real-time information readily available to develop analytics that management can use for tax planning. As Air Liquide’s Tax Principal explains, “The transformation optimized our international data and workflows significantly. Now, we utilize Corptax to easily access and manage structured foreign data centralized in a single system instead of struggling with maintaining historical records in Excel. These improvements resulted in a more efficient prep and review process, meaningful results, and actionable analytics.” 

Today, Air Liquide: 

• Saves approximately 280+ hours of international tax compliance work they redirect towards other high-value tasks and projects 

• Manages data and E&P records for over 100 foreign entities with less manual work and minimal need for external resources beyond the international tax team 

• Furnishes real-time analytics and models to management by leveraging foreign data in Corptax 

• Focuses on data optimization and international tax planning instead of reconciling and troubleshooting foreign calculations and forms 

Fortive Reinvents RTP with Alteryx, Corptax, and the Corptax Connector 

Fortive’s voluminous foreign Return to Provision (RTP) process lacked two essential elements: standardization and automation. Different regions (Asia, Europe, etc.) relied on their own templates and formats, making uniform reporting unnecessarily challenging to manage.  

Finance contacts all over the world manually entered RTP estimates and adjustments into Corptax during soft and hard closes — an inefficient and somewhat error-prone process.  

Fortive couldn’t be sure when numbers were static and final, which hampered review and analytics efforts. Plus, external auditors raised issues with frequent adjustments made to RTP data throughout the year and changes made to post-filed data.  

As Fortive’s Tax Manager Ryan Chippendale put it, “The most important aspect for us was to ensure data quality and process standardization in how we managed RTP.”  

The Fortive team required a fluid, automated RTP solution that: 

• Centralized data  

• Protected data and limited Corptax edits to key personnel only 

• Enabled consistent and comprehensive data entry 

• Improved process understanding and status visibility across all regions 

Solution

In 2020, Fortive launched their RTP transformation by creating and implementing a standardized template for all regions. Their goal was to capture uniform data, reduce constant back-and-forth between the global tax team and foreign controllers, limit unproductive access to Corptax, minimize pressure on foreign controllers, and allow tax headquarters to better manage their reporting timeline. 

The new standard template and related workflow tasks proved a massive upgrade to their existing process, and Fortive continued to refine and invest in their modernization effort in subsequent years. First, they needed a better way to quickly and concisely aggregate foreign template data into a single file that was ready to import into Corptax. Using Alteryx, they consolidated the templates into one master file in a matter of seconds — eliminating manual file preparation and data movement, minimizing errors, and freeing up valuable time for preparers and reviewers.  

Fortive then took automation to the next level by introducing the CSC Corptax Connector® for Alteryx. The Connector made it seamless to aggregate and import foreign RTP templates into Corptax. It also allowed Fortive to quickly pre-populate foreign RTP templates with known data from Corptax before sending them out. Now, foreign controllers were able to review vs. input information, and headquarters achieved instant tie-outs between amounts imported into Corptax and Fortive’s offline workpapers.  

Lastly, Fortive began to leverage Corptax multi-year RTP workpapers to more easily handle RTPs from previous years. This solved the issue of late RTPs in regions with extended filing periods, such as the UK and Germany. Multi-year workpapers also enhanced data visibility and accuracy, offering better insight for reviews, planning, and integration into Alteryx workflows. 

Results

The standardized RTP templates and automated data entry save Fortive’s preparers and reviewers collectively ~500 hours per year and furnish consistent data. By minimizing the number of people manipulating data in Corptax, the process is organized, and data entered into Corptax is accurate. 

The integration of Alteryx and the Corptax Connector further streamlines processes and improves audit readiness. By integrating the latest data, the Corptax Connector facilitates analytics and makes tax reporting more reliable. Multi-year RTP workpapers reduce the need for manual adjustments, which speeds up data entry and improves data readiness in the context of planning.  

As Tax Manager Prashneel Kumar sums up, “The new workflow makes it quick to populate and generate accurate RTP packages and push completed package data into Corptax – and the Connector highlights major efficiency gains over our previous manual process.” 

Following the success of the provision project, Fortive introduced Corptax and Alteryx automation into many other areas of the tax continuum. The team has implemented Corptax interim workpapers for their provision and year-to-date ETR using the same automation to extend benefits from annual to quarterly. Also, Fortive uses Corptax and Alteryx for compliance to consolidate large datasets and integrate them into workflows — from estimated payments to state and federal compliance and back to provision. 

Fortive’s innovative integration of Corptax, Alteryx, and the Corptax Connector not only transformed their RTP process, but set a new standard for automation across the tax lifecycle. Through these tools, Fortive optimizes efficiency and data accuracy and enables the team to focus on high-impact strategies. 

Fragmentation to Integration: Salesforce Files Six Weeks Sooner 

The Salesforce tax team managed provisions in-house while outsourcing compliance to a third party. This lack of integration between the two interconnected processes led to a maze of inefficiencies and duplicative work. Reconciliation efforts increased significantly when processing return-to-provision adjustments. For example, the team built book-tax difference workpapers without fully accounting for the end-to-end provision and compliance processes, even though they relied on the same source data. 

As US Tax Director Debbie Wong said, “We felt by outsourcing compliance, we lost the opportunity to align and optimize these two interdependent processes.” Additionally, reliance on third parties drove up costs, complicated audits, and “outsourced” knowledge Salesforce leadership felt should remain within the tax team and company.  

Further, fragmented processes prevented a holistic view of tax operations, complicating effective planning and review. 

Solution

Salesforce decided to reimagine the compliance function. They developed an in-house compliance team, identified process improvement opportunities with clear metrics, and leveraged the functionalities of the CSC Corptax® Compliance suite to address the challenge. They aligned on a multi-year plan with well-defined benchmarks and collaborated with external advisors to launch the project. 

To reduce workpapers and manual data entry, the team designed a detailed tax data blueprint, mapping general ledger accounts to the appropriate Corptax M codes and automating all possible adjustments within Corptax. Next, they used CSC Corptax® Office and Office POVs to automate dataflow between Excel and Corptax to streamline data collection and validation.   

This laid the groundwork to integrate Alteryx to manage intercompany transactions and more effectively aggregate data. And with data now in Corptax, Salesforce used Tableau to create dashboards that revealed real-time, actionable insights for management. 

They also fully documented the new process to enable fast on-boarding when new members joined the organization.  

Results

The Salesforce effort to reimagine the compliance function and integrate provision and compliance processes resulted in huge benefits. By owning the tax continuum, the team now has a complete view of tax return data in Corptax. They know they have a single source of truth which supports strategic planning, forecasting, compliance, and risk management — adding meaningful value to the organization. 

The benefits of managing compliance in-house spoke loud and clear when the team met a management challenge to file returns a full month earlier than the year before — inconceivable with their old process. By driving manual and duplicative tasks out of the process, they completed their 2023 filing not four, but six weeks earlier than the prior year — giving the state team ample time to accomplish their work and even adjust templates for the coming year.  

Eliminating reliance on external contractors and consultants and using Corptax in-house fuels major efficiency and oversight throughout the department. Fully involving internal tax teams expands their knowledge and keeps critical company information within the organization. 

Improved work-life balance rounds out Salesforce’s success. As Debbie Wong shares, “we can actually take time off and rejuvenate ourselves for next year.”  

In short, the Salesforce tax team has achieved impressive results: 

• Increased employees’ satisfaction 

• Accelerated federal and state income tax filings  

• Lowered cost of external providers 

• Built an integrated process to support provision and compliance 

• Improved data management to enable analytics such as year-over-year variances going back five years and future AI capabilities 

• Enhanced processes and documentation to support financial and tax audits 

Siloed to Streamlined: Verisk Analytics Overhauls BEPS CbCR with Corptax 

Compared to their provision and compliance processes in Corptax, Verisk Analytics’ global CbC reporting process was “disjointed and siloed.” A single team member handled the entire process offline in a separate tax application, manually sourcing, manipulating, inputting, and verifying a huge volume of data. With no structured process in place, they were compelled to sift through prior year data to replicate the process each year. Additionally, users found the current system unintuitive and slow.  

Further, the team knew impending Global Minimum Tax requirements would further complicate their siloed process. 

Verisk wanted a solution to address: 

• Manual data-handling that ate up valuable time, increased errors, and required a major effort to ensure accuracy. 

• A lack of transparency that hindered reviews and audit response. Discrepancies were difficult to identify and correct in advance. For example, Verisk inadvertently excluded relevant items from Unrelated Revenue such as gains and interest income. Furthermore, state taxes were erroneously excluded from the Accrued Taxes total.  

• Just one individual knew the intricacies and nuances of the full process. As Verisk’s International Assistant Tax Manager said, “if the process owner won the lottery, we’d be in a difficult situation.” Documentation and standardization were needed to establish continuity. 

Solution

Verisk added CSC Corptax® BEPS CbCR to their Corptax Single Solution suite of products. In Verisk’s words, “the BEPS module would alleviate our pain points. We would have one database containing the data for domestic, international, and CbC reporting.” Additionally, the Corptax CbCR module would facilitate traceability to the book amounts used in their tax return with all data housed in one system. 

Verisk also engaged CSC Corptax® Professional Services to: 

• Review the existing process to identify and resolve inconsistencies and inefficiencies 

• Assist in setting up review processes using CSC Corptax® Office 

• Introduce analytics to visualize and optimize BEPS CbC reporting  

• Help ensure public disclosures reflect the company’s perspective 

• Create a comprehensive guide to document the process for future users  

Verisk has since added Corptax Office POV reports to quickly pull data from CbCR Table 1 and Table 2 to ensure that data in Corptax matched data in their source files. The team is enhancing this effort by creating Alteryx workflows to facilitate the reconciliation process. 

Results

Now, instead of spending weeks mining prior-year data and reports to substantiate work done in the past, Verisk pulls domestic and international compliance data into BEPS prep in mere seconds. By solving their pain points, Verisk estimates they complete CbCR in 20-30% less time. They’ve also realized significant efficiencies using POV reports to quickly populate Table 1 and Table 2 data into prepared reconciliation models.  

Full documentation created with the help of Professional Services furnishes complete transparency and simplifies the review process at all levels. Verisk spots potential issues early, understands the data they need to collect, and knows exactly where to find it.  

By leveraging the Corptax BEPS module, Verisk can: 

• Better review the process from start to finish, rather than offline with one person 

• Quickly get to the root of discrepancies 

• More effectively evaluate tax positions and parameters for the BEPS calculation 

• Respond quickly to external auditors with complete support  

• Automate and document the process, so others can seamlessly step in 

• Be well prepared for BEPS Pillar 2 compliance 

Though results were always reviewed at the senior level, the introduction of data analytics and a structured process helps Verisk provide management with concise and actionable information they can review quickly and effectively.  

Thrilled with the results their Corptax BEPS module helps them deliver, Verisk is taking the concepts they learned and applying them to Pillar Two readiness by implementing the CSC Corptax® Global Minimum Tax module.