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Platform Modernization for Tax Reporting and Compliance Automation
  1. case
  2. Platform Modernization for Tax Reporting and Compliance Automation

Platform Modernization for Tax Reporting and Compliance Automation

altoroslabs.com
Financial services
Information technology

Challenges Faced by Financial Institutions in Tax Regulatory Compliance

A rapidly expanding financial technology provider operating in a heavily regulated environment faces difficulties in maintaining and updating its proprietary tax reporting platform amidst changing taxonomies and compliance regulations across jurisdictions. They lack sufficient in-house talent to support continuous feature evolution and compliance updates, risking non-compliance and operational inefficiencies. Existing modules hinder performance, restrict file sizes, and complicate maintenance, necessitating a scalable and secure platform upgrade without replatforming the current technology stack.

About the Client

A large, globally operating financial technology provider specializing in automated tax reporting and regulatory compliance solutions for enterprise clients.

Goals for Enhancing Tax Reporting Platform Efficiency and Compliance

  • Ensure continuous delivery and customization of tax report templates to meet evolving regulatory requirements for over 850 enterprise clients.
  • Redesign platform architecture to simplify maintenance, enhance performance, and support large file uploads for diverse report formats.
  • Implement automated validation for regulatory taxonomies with around 5,000 compliance rules to reduce manual testing efforts.
  • Strengthen platform security by blocking unauthorized third-party access and ensuring data integrity.
  • Automate comprehensive testing procedures, including functional, acceptance, GUI, and integration tests, achieving significant QA effort reductions.

Core Functional Specifications for Tax Reporting and Validation System

  • Modular architecture enabling easy updates and maintenance without replatforming.
  • Parallel workflows for processing and converting multiple report formats (.pdf, .xls, .xml, etc.).
  • Capability to upload and process large files exceeding 40 MB in size.
  • Dynamic generation and automatic updating of 5,000+ validation rules to ensure compliance with changing taxonomies.
  • Integration with cloud-based DevOps pipelines for continuous testing and validation automation.
  • Security measures to restrict access to suspicious or unauthorized third-party services.

Technological Frameworks and Architectural Approaches

Microsoft Azure cloud platform
Reconfigured Microsoft SQL Server for optimized data management
Automated testing pipelines using Azure DevOps
Modular and scalable microservices architecture

Essential External System Interfaces

  • Regulatory tax authority data sources for taxonomy updates
  • Third-party validation and compliance services
  • DevOps tools for continuous integration and deployment

Performance, Security, and Scalability Expectations

  • Support for processing files larger than 40 MB
  • Reduction of QA testing efforts by up to 90% through automation
  • Ensuring platform security by restricting third-party access
  • System high availability to ensure uninterrupted service delivery for over 850 enterprise clients
  • Simplified maintenance through architecture restructuring and optimized workflows

Anticipated Business Benefits from the Platform Enhancement

The project aims to enable continuous feature delivery and customization of tax report templates, directly supporting over 850 enterprise customers. The architectural redesign will facilitate easier maintenance and improved platform performance, resulting in significant resource savings—potentially hundreds of thousands of dollars—by avoiding costly replatforming. Automation of approximately 5,000 compliance validation tests is expected to reduce QA efforts by up to 90%, accelerating compliance updates and mitigating regulatory risks.

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