With an increasing globalisation of tax, there’s a growing need to centralise and manage compliance across jurisdictions. Thomson Reuters’ 2019 Tax Technology Survey reported that 98% of tax professionals are investing in tax technology over the next 12 months, due mainly to the rise in digitally capable tax authorities.
Making Tax Digital (MTD) is leading to a growing board-level appetite for better tax compliance and planning. There’s a desire to bring tax capability in house through investment in technology, with double-digit growth in areas such as big data analytics (60%), AI and machine learning (50%), and robotic process automation (56%). Such technologies can streamline businesses and cut down on wasted manual effort.
As the working world becomes more complex and risks increase, there’s a clear benefit in reducing the time, money and risk associated with manual tax processing. This work can be automated, freeing up staff to focus on higher value tasks. Tax departments cannot risk being left behind by technological progress – the challenge is to get their processes right and then to select the appropriate tools to help carry them out.