Tax technology is an essentiality for organizations to thrive in the new digital world.
FREMONT, CA: Digital technologies are altering business models, resulting in round-the-clock and border-independent value creation for businesses. Tax authorities across the globe are also introducing newer tax laws to deal with these digital business models, which require greater transparency and seamless exchange of taxpayer information among authorities. The tax industry, therefore, needs to be ready to deal with this digital disruption, which demands them to be closer to advanced technologies, and address the changing requirements and expectations of tax administrations with greater accuracy and efficiency. The tax technology landscape is maturing and is now shared by multiple solution providers and products.[vendor_logo_first]
Powered by technology, digital is a disruptive trend that is allowing real-time access, analytics, and visibility. Responding to this, the tax process needs to increasingly operate across several fronts. Advanced technologies like blockchain, robotics process automation (RPA), and artificial intelligence (AI) can provide a new era of visibility into data and unearth values, help manage risks, improve efficiency, and offer critical business insight.
Blockchain creates an environment in which every transaction is open, verified, and available in real-time. In tax, it has the potential to move the function to a place where transactions, assets, expenses, and liabilities can be recorded in real-time. Mistakes, risk, and fraud could be eliminated. RPA is one step in the evolution of the business process. TaxBots are already being used to empower tax function operations, supporting to boost indirect tax compliance, tax provision, and use compliance. The promise of RPA allows professionals to shift the work by being able to focus on value-added tasks and contributing more strategically. Similarly, AI is offering many benefits for the tax function, like improved decision-making. AI will be stuffed with information on tax codes, case law, and administrative guidelines and will be enabled to make the right decisions on this basis.
Apart from being essential, technologies can also become an opportunity for early movers who embrace them into their tax functions to add more value to the business and make informed decisions in the long run.
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