Increased transparency is a requirement of tax authorities in recent times. They need transparent processes for sharing information, their jurisdictions, and also for firm approaches to management and tax collection processes. On the other end of the equation, this has overburdened businesses with the load of increased compliance. Businesses are also facing tax risk and uncertainty.
Tax and technology have interconnected to a greater extent, especially with the widespread of artificial intelligence (AI) and machine learning (ML). Tax functioning is changing at a fast pace that has never been seen before, as tax authorities are digitizing.
Tech tools for taxation
As we know, business leaders are always on the hunt for knowledge as to how they can speed up their use of tech tools so that they can create more capability in their teams and use data to get more insights from it.
Compliance obligation never stops at one point and keeps expanding, and heads of tax departments are asked to meet the requirement at a much faster pace while maintaining the quality.
The point here is that how the tech is reshaping the tax future. And what must the tax heads do to utilize the potential that it offers?
Authorities around the world are sharing information with one another and adopting data analytics and digital operations, which is why they are provoking a shift towards progressive compliance from relying on hindsight. So we can say that the main drivers of tech disruption in the tax sector are may be these authorities.
Role of leadership
Take AI as an example, it can help professionals in the tax sector to know the savings hidden in their data and to identify the actual tax risks, and also stay updated on the most recent regulatory changes. AI solutions can also tell about how tax laws apply to a specific situation at hand with real-time insights.
AI can help free time and save the effort of tax teams for important strategic activities by automating this heavy lifting and streamlining the decision-making process.
Heads of tax must ensure some elements to get the most out of AI and to integrate it effectively. A leadership role must be devoted to integrating and implementing digital tech in the functions of taxation.
The key duty of the leadership of tax tech will be strategy development, because it is very important that the taxation lead the tech. There are no shortcuts when it comes to technology deployment in the public sector due to its huge size and public impact, so the strategy must be based on a practical time frame, and clarify the coming changes to the processes and system as a whole, and must be evaluative of the fact that where the process stands and where it should be after the implementation.
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