27 Apr Tax Complexity Requires Digital Transformation
Tax authorities around the globe are effectively leveraging technology to more quickly and accurately identify violations and to stay on top of shifting regulations, prevent tax issues, and respond to inquiries when they happen.
Changing regulatory challenges, growing compliance obligations, and technological innovations are disrupting business-as-usual for organizations across the globe. Companies must evolve and adapt, and so must their tax departments.
The tax function is transforming. New technologies and advanced analytics are improving operational efficiencies and are simultaneously enabling tax professionals to play a more integral role in business strategy.
However, according to BDO’s 2020 Tax Outlook Survey, 41% indicated that limitations in tax technology have significantly impacted their ability to respond to new regulations.
As a result, tax departments are making investments.
- 69% are investing in new technologies
- 16% in recruitment and staff retention
- 15% in increasing the skill set of the current staff
Tax technology is one of the key components of managing compliance more effectively and delivering value. The handling of tax issues needs to become more digital.
Yet according the BDO’s 2020 Tax Outlook Survey, only 20% of companies have a documented tax technology strategy to support business objectives. This is highest in the Americas (28%) and lowest in Asia Pacific (12%).
Automating routine processes and keeping up with the rapid pace of change remain significant barriers to the successful implementation of tax technology. In the Americas attracting and retaining talent is a further issue, and in the Asia-Pacific region, it is redefining roles and responsibilities.
In the same study, respondents were asked to rank the most important priorities for their organizations tax function. Keeping up with new regulations, increased efficiency, cost control and workflow and managing compliance across multiple jurisdictions were the top priorities and mirror all benefits of the NOTICENINJA SaaS solution.
Schedule a Demo of NOTICENINJA and see how you can digitally transform your tax and notice management.