Pillar Two: XML Filing, The Final Hurdle

You've spent months in spreadsheets, working with advisors and new technology platforms, labouring over calculations, adjustments and various schedules. You are finally happy that you have a qualified CbCR, you have identified all the correct data points for your group and have accurately populated a GIR.

Hurray! Pillar Two is done... or is it?

Sorry to be the one to break it to you but you now have to convert all of this data into some unfathomable code. Welcome to the world of XML (Extensible Markup Language) formatting!

XML Filing can't be avoided

Tax authorities have mandated the use of XML, a highly structured, machine-readable standard that facilitates consistency across jurisdictions. Unlike Excel, which is widely used for financial modelling and analysis, XML is not designed for human readability but for seamless transmission and validation of data by regulatory systems. 

The challenge with XML filing

This distinction creates a challenge for many tax teams, who continue to rely heavily on Excel as their primary working tool. This is because Excel alone cannot generate the XML outputs required for GIRs and QDMTTs. To bridge this gap, businesses are currently left with three main approaches. 

Three approaches to tackling XML filing

1. Use of XML conversion tools 

Either embedded into Pillar Two software (like ARKK) or stand-alone XML conversion tools (we also offer this). This approach is cost effective and can usually be managed in-house, meaning you are not reliant on others to return in a timely manner.  

To learn more about our Pillar Two software please click here.

2. Outsourcing to professional services firms 

The Big Four and other advisers can manage the conversion and submission of XML filings, but this often comes with a significant cost, particularly if required for multiple entities across several jurisdictions. 

3. Developing in-house solutions 

Building an XML engine internally provides greater control, but requires deep technical expertise, substantial resource investment and ongoing maintenance. For most organisations, this route is neither cost-effective nor efficient. 

How ARKK can help

As deadlines approach, the ability to translate complex tax data into compliant XML filings will become a critical capability. 

At ARKK, we work closely with tax and finance teams to address these challenges. Our technology simplifies the transformation of existing data into the mandated XML format, helping businesses remain compliant while avoiding unnecessary cost and complexity. 

If you're yet to find a solution for your XML conversion, you're in luck, get in touch below