Deloitte Enhances Tax Reform Navigator Technology and Services

Deloitte has launched new features to its Tax Reform Navigator tool that enhance how companies analyze and plan for existing and custom tax reform proposals. Debuted in July 2017, the Tax Reform Navigator is a state-of-the-art, web-based solution that, in tandem with Deloitte’s tax reform advisory services, uses actual and projected financial data to provide a holistic view of how potential tax reform proposals are likely to impact a company.

“Amid the evolving outlook on tax reform, we continue to enhance our Tax Reform Navigator so that businesses have the confidence to make informed decisions,” said Terri LaRae, partner and national leader of tax reform advisory services, Deloitte Tax LLP. “We strive to stay at the forefront of tax reform issues to prepare companies during these dynamic and uncertain times.”

Enhancements to the tool include:

Multiple customizations: Deloitte Tax can work with companies to create multiple custom proposals based on the existing provisions modeled out to understand the impact of different tax reform scenarios on their business. For example, it can analyze the various proposed corporate tax rates – 28, 25, 20 or 15 percent – while keeping all other elements static.

Three-year outlook: Companies can analyze potential tax impacts up to three years beyond the current year by inputting anticipated future dollar amounts or anticipated growth percentages by year.

Transition tax impact: Companies can model the anticipated result of the U.S. transitioning from its current worldwide tax system to a territorial tax system. This includes an analysis of how a proposed deemed repatriation of corporate profits subject to a one-time tax with differing rates for cash and equivalents versus other assets could impact their tax situations.

Life insurance industry module: Insurance companies can accommodate scenarios involving changes to capitalization rates for deferred acquisition costs, changes to discount rates for computing life insurance reserves, modifications to the life proration rules, modifications to the separate account dividends received deduction, and proposed changes to the treatment of affiliated reinsurance. This customized module is based on the 1120-L tax return to address the unique taxation of life insurance companies and incorporate certain proposed tax legislation changes specific to the life insurance industry. Deloitte also is working on developing a module for property and casualty insurers.

An upcoming enhancement will include additional dashboards and at-a-glance reports illustrating the potential impact of tax reform on a particular taxpayer by using appropriate tax planning options as suggested by Deloitte’s tax reform advisory professionals.

For more information on the tool and Deloitte’s tax reform solutions, visit http://www.deloitte.com/us/en/pages/tax/solutions/tax-reform-navigator-services.html.