The rapidly changing world of tax is being transformed by both business change and the robust tax regulatory environment. Increased globalization and digital transformation are changing the re-ordering of business operations and the complexity of tax. The implementation of the Organization for Economic Co-operation and Development’s (OECD’s) Base Erosion and Profit Shifting (BEPS) project, in particular its Country-by-Country (CbC) reporting initiative, is pushing the need for transparency and cross-border information reporting. Tax leaders are thrusted into more critical, visible roles and demanding new skills regarding their position of tax considerations in business decision making.
Global taxpayers are now confronted with more heavy tax compliance requirements, more developed tax enforcement measures, as well as a rise in aggressive tax audits. More accurate reporting is required in less time, while tax professionals also face an increasing pressure to aid the overall organization by helping with strategic decision making. This increase in global tax compliance requirements together with outdated, inefficient, manual processes take up more valuable resources. At the same time, it increases the involved risks.
Tax Technologies which can contribute to the sustainable standard of tax are:
- Data Integration or ERP – reduce the data load process and related variances and errors
- Document management – reduces collection and manipulation efforts and improves staff efficiency
- Workflow – improve internal controls, minimizing recurring rework and increase collaboration
- Reporting and Forecasting Tools – identify critical trends and cycles that may trigger change in the business process
- Data Warehouse / Data Market Applications – allows for more efficient data sharing, faster access and increased consistency.