New rules call for new actions: Tax authority mandates drive disruptive change
Businesses are complying, and finding value, by deploying innovative tax technologies that speed data collection, lower costs, and reduce tax avoidance and corruption.
Businesses of the world, take note. If you're not already experiencing developments like those described in the gray box, you will soon.
Governments around the world are harnessing innovative technologies that involve the digital collection and analysis of tax data. Governments are going digital at a rapid pace, and companies have no choice but to match this pace of change and comply-or face stiff penalties.
But businesses are also finding substantial benefits as they deploy new tax technologies, including lower costs, reduced risk, and enhanced data integrity. By extracting valuable insights, the tax function can make a strategic contribution to the business.
Minimizing e-reporting errors with Tax Technology
Tax digitalization in the European tax market has become a necessity as it promotes visibility across different jurisdictions along with global consistency. The tax market is now focusing on SAF-T and quick e-reporting solutions that enable frequent responses and reconciliations of submissions. Such solutions aid in minimizing error-prone manual financial procedures and create greater efficiencies for the business.
Tax Technology Drives Disruption
With innovative technologies being more accessible, and more affordable, governments are finding ways to do more with less, and enacting mandates that require changes well beyond simple e-filing. Similarly, businesses are also growing more confident as they discover new opportunities in the digital world.
A day in the life of regulatory-driven disruption
Today in Australia, a coffee shop owner electronically sends required reports using her mobile phone’s business tax app.
In The Netherlands, a multinational bank prepares and uploads transaction-level digital records using a cloud-based system.
In Brazil, the tax administration analyzes the data of a local automotive supplier, calculates the tax they determined it owes, and sends the company a notice of the payment due.