Technology Holds the Key to the Future of Tax!

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Technology Holds the Key to the Future of Tax!

By CFO Tech Outlook | Monday, August 10, 2020

Taxation has always been an active area for businesses of all sizes. To assist their efforts, tax authoritative have embraced digital technology. Technologies are used to interpret taxpayer trends and ensure the organization can achieve better compliance with legislation. As more technology solutions become available and cost decline, tax authorities are seizing the opportunity to prevent and detect fraud, improving their revenue collections, and boosting operational efficiency.

• Business Operations

Regardless of whether companies decide to revamp their tax compliance strategies to harness the trends in motion or not, an underlying technology stack will continue to be compulsory for large companies. This segment is already using tax compliance tools made available through global B2B providers. The arrival of Software as a Service (SaaS) makes deployment and maintenance of software solutions cost-effective and straightforward, requiring minimal investments and hardware infrastructure from the employer.

Tax Enforcement

Employers are eager to adopt tax compliance technologies and are also optimistic about using digital solutions for enhanced tax enforcement. As tax authorities become more sophisticated and armed with advanced data and analytics capabilities, businesses will have to stimulate their compliance engines.

• Automated Workflows

The best method to prevent end-of-year tax compliance hassles is to make it part of regularized workflows. The advanced taxation tools will help link the different forms of tax to be paid, with other functionalities including compensation to benefits, and from travel and expense to vendor management, across the supply chain.

The tax landscape is continually changing, and with tax compliance emerging as a potential transformation area, technological solution for this domain will gradually gain momentum. Sophisticated enforcement methods and burdensome compliance requirements, better data and processes, increased automation will be utilized. With a solution capable of managing entire operations, technology is fledged to unlock the advancing era of digital taxation.

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