• Collaborative tax governance platform Loctax empowers in-house tax teams to digitalise their tax function and manage risk.
• Companies are facing increasing tax regulations and greater calls to demonstrate robust governance.
• But many businesses are hampered by transparency and collaboration challenges in their tax function.
• Series A investors include Index Ventures, Cavalry Ventures, and prominent angel investors.

London, UK; Brussels, Belgium, 21st September 2022 – Loctax, the world’s first collaborative tax governance platform, has raised 12m USD to empower multinational companies to communicate their global total tax contributions with greater ease and clarity.

Loctax’s workflow solution allows in-house teams to manage their international tax risk, and provides a simple, single view of tax compliance and advisory workloads. It also enables companies to clearly demonstrate how they are meeting tax obligations, and improve their standing as corporate citizens.

The Series A raise was led by Index Ventures, which has previously backed Slack, Dropbox and Figma, among others. The all-cash raise also saw participation from existing backers Cavalry Ventures and Seedcamp, as well as angel investors including the CFO of Revolut and the CEO of Checkout.com.

Increasing pressure on tax teams

In the last decade companies have seen a major shift in expectation around tax disclosure from governments and regulators. Far-reaching initiatives such as the OECD’s framework on base erosion and profit shifting (BEPS), which would establish a global minimum tax for multinational enterprises, have been driven by increasing pressure to improve tax transparency and to respond to public and private expectations around companies’ ESG (environmental, social and governance) reporting.

Loctax’s CEO Hans Kayaert commented: “Companies are under more pressure than ever to meet growing tax reporting and regulatory requirements as well as the expectations of stakeholders to show they are doing the right thing. Currently there’s no shared concept in how companies and regulators talk about tax, and no straightforward way for tax teams to be confident that they’re meeting all their obligations.” 

Lack of trust by regulators

Many tax teams are still mired in legacy technology. Without reliable collaborative management tools, crucial tax information is too often not visible to teams across countries, many of which have different reporting requirements. Information which teams need in order to confidently meet regulations is often siloed and overly reliant on key individuals, increasing the risk of critical incidents such as fines and reputational damage.

A recent survey found that more than a third of officials in the OECD perceive most large businesses to be non-transparent around their tax affairs.

Loctax’s platform combines up-to-date company data, international tax rules, visual intelligence, and collaboration tools to help companies achieve total control of their tax governance. The company will use the new funding to support team growth in the UK and EU, and to expand its partnerships with the tax and professional advisory sector. 

Founded in 2020, Loctax’s leadership team combines decades of experience in technology, in-house tax practice, law and consultancy. The pan-European tech firm’s platform gives companies the technical ability to evaluate and respond to a fast-changing global tax landscape, as well as to attract talent in a fast-moving market.

Hannah Seal, Partner at Index Ventures, commented: “Tax teams, particularly those at companies operating in more than one jurisdiction, are coming under more and more pressure, both from increasing regulation in this area, and heightened expectations from stakeholders around tax reporting and transparency. What Loctax is building will give tax teams a single source of truth and allow them to ensure compliance in all locations while improving the team’s workflow and efficiency.”

Stefan Walter, Co-Founder & Managing Partner at Cavalry Ventures, commented: “Loctax is a truly category-defining product and a win for all stakeholders. It offers a simple solution to recurring challenges for tax professionals and will help unlock efficiencies in an area with huge potential for transformation through an easy-to-use interface, straightforward onboarding, and a powerful engine.”

Kayaert concluded: “Consumers, investors and stakeholders increasingly want to engage with organisations who are good corporate citizens. Our aim is to give companies that chance to express their tax governance in a clear, comprehensible way, and to meet the needs of their audiences.”

ENDS

Media contact

For all press queries, please contact:

Edward Clark: [email protected] / +44 (0) 7983 507 659

Kira Meredith: [email protected] / +44 (0) 7862 003 468

About Loctax

Loctax is the first ever collaborative tax governance platform for global in-house tax teams. 

By bringing together internal and external stakeholders, Loctax helps to achieve full control over tax risks, compliance, advisory projects, audits and other tax responsibilities. It empowers multinational companies to digitalise their tax function and to communicate clearly about their global total tax contributions.

For more information, visit http://loctax.com/