Digital Tax Record Simplifies Tax Audits

Information Lifecycle Management entails the standardized and efficient management of business data and information throughout its entire life cycle. It aims to make the right data available at the right time in the right place.

In 2008, SAP launched SAP NetWeaver Information Lifecycle Management, a tool that supports people in creating, storing, retrieving, and destroying information. “This led many users to express the desire for solution to help them meet the requirements of the German Principles of Data Access and Verifiability of Digital Documentation – or GDPdU – easily and out-of-the-box,” says Olaf Paetsch, managing director of Infoniqa IT Solutions in Berlin, explaining how the digital tax record came to be developed.

The digital tax record provides:

  • Flexible reporting and evaluation functions
  • A simulation of the anticipated audit results
  • Structures, methods, and templates to support the process documentation relevant for GDPdU

In Germany, GDPdU regulates the principles of data access and the verifiability of digital documentation, including the scope of tax payers’ duty to collaborate and rights with regard to data access.

The digital tax record works by being fully integrated with the associated SAP functions. It is based on the DART extraction mechanisms and formats the data in line with the GDPdU description standard for transfer to data medium according to access type Z3 (interface). Integrated flow control means that users are guided actively through the entire process, including the switch from the add-on to the standard transactions for audit preparation and execution.

The individual audit steps are displayed based on the files, so that users have a structured and clear overview of all the relevant activities at all times.

Where necessary, the add-on xft document connector can be deployed to generate documents or e-mails straight from the process itself. This means that important documents can be integrated directly with the process, and can be documented and archived using process management.