Developed to make it harder for large multinationals to avoid taxes by shifting profits to jurisdictions with lower tax rates , the Organisation for Economic Co- Operation and Development ’ s ( OECD ’ s ) ground-breaking Base Erosion Profit Shifting ( BEPS ) framework for taxing the digital economy has been designed to harmonise corporation tax at a global level .

Recently incorporated into UK domestic law , businesses have begun preparing in earnest for the transition to a new era of taxation . Pillar Two mandates paying a minimum tax of 15 %, irrespective of where organisations are operating , as well as complying with demanding new regulatory reporting requirements .

This will be no easy task , as completing the new Global Anti-Base Erosion ( GloBE ) information return will be a global undertaking . One that involves addressing more than 150 data requirements for each and every entity in an organisation ’ s global group .

The data challenge

While the filing of returns might seem a long way off in 2026 , businesses must start being compliant much earlier . Indeed , many businesses have already made disclosures relating to Pillar Two in their annual reports and will continue to harden their stance over the coming years .

Many are discovering , however , this will require an end-to-end enterprisewide effort and a new data strategy in order to obtain all the data points needed . Attempting to undertake this task manually , using email and Excel spreadsheets , will prove both onerous and challenging as organisations will need to source , consolidate and analyse a lot more data from a variety of different stakeholders across multiple subsidiaries and entities .

To address this issue , some organisations are looking to their core finance systems to deliver much of the primary data that will be needed , but the capabilities of these systems can vary significantly . In addition , many companies are unlikely to have

Russell Gammon , Chief Solutions Officer at Tax Systems

everything held centrally in a single groupwide enterprise resource planning ( ERP ) system – something that will be a particular issue for multinationals that have engaged in M & A activities over the years . In these situations , data will need to be extracted from a variety of siloed legacy systems .

To overcome this , some companies are looking to leverage an array of complex www . intelligentfin . tech

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