Tax digitalisation services cover a broad spectrum as tax digitalisation itself is an extensive subject and can mean different things to governments, corporates and other stakeholders.
Tax digitalisation for governments
It is the digitalisation of tax collections, filing and administration as the governments all over the world continue to invest heavily in information technology.
Tax digitalisation for businesses
The focus on corporates, tax advisors and other stakeholders is also undergoing a transformation. Corporates and tax advisors have started embracing tax technology to comply with the new electronic reporting requirements, and more importantly to leverage automation to make their tax functions operate more accurately and efficiently.
The digital economy
The surge of the digital economy, makes it increasingly possible for corporates to reach markets where they have no physical presence and generate substantial revenues from such jurisdictions. Under the existing international tax rules that allocate taxing rights on business profits on the basis of physical presence, this model may result in corporates escaping without payment of taxes both in the source state and the residence state.
Tax digitalisation policy
While each of the above aspects of digitalisation is distinct, all of them are coming together to impact the world of tax compliance and advisory in a profound way. Tax policies are changing at a faster rate today, than has historically been the case, particularly when it comes to reporting requirements.
Tax data management
The Covid-19 pandemic has accelerated the trend towards tax digitalization, digital transformation and the need for strong data management as there has been a tremendous increase in global reporting requirements. We, at Kreston Global expect that in five years’ time tax compliance will be achieved for our clients with technology that does not exist today. We therefore work with our clients to stay agile, monitor the developments in the tax and technology environments, and adopting new and improved approaches toward tax compliance and management.
Digital tax compliance
Meanwhile, through artificial intelligence and robotics, tax authorities are multiplying their efficiencies, by understanding taxpayer behaviour, checking evasion and implementing strict tax audits. Kreston Global helps our clients manage the impact of digital transformation of global tax compliance by:
- Assisting clients in improving their data collection processes and data analytic tools to turn financial e-data into actionable insights for tax compliance
- Assisting clients to implement systems and processes, that ensure the quality of tax-relevant data.
As tax functions of tomorrow take shape, it is an exciting time for tax authorities and tax professionals. Digitalization will ultimately result in automation of compliance and tax authorities are bound to apply technology to develop more value. Kreston Global will help its clients to adopt and implement technological tools, to derive strategic insights and values so as to comply with tax functions.
Why choose Kreston Global?
Kreston Global is committed to providing your business with the best chance of success. Using our tax digitalisation knowledge, we have supported numerous clients and can do the same for you. Our approach is built on offering exceptional service, in-depth guidance and the latest insights.
Not only that but we can also offer 24-hour global coverage. Our network of 160 accounting firms across more than 110 countries gives us an impressive depth of expertise upon which to call. It means that you benefit from tax digitalisation services that are underpinned by 23,500 experts.
If you’d like to find out more about our financial and insurance services, get in touch by phone or email. You can also become a member and realise the full benefits of our global network.