Tax administration goes digital

Apr 11, 2018 · Chicago, United States of America

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Tax administration goes digital

Tax, finance and IT departments must work together to proactively prepare for a new era of digital engagement with tax administrations, says a new EY report.

In many markets, tax authorities are forging ahead of business' capabilities to meet new demands. This shift can create significant risks and costs for companies – resulting in not only penalties and interest, but reputation risk, business disruption and increased costs of compliance.

The new report describes how, as a result of limited resources and increasing demands to close revenue gaps, governments around the world are ramping up their technology and analytics capabilities at a rapid pace. To take advantage of these new capabilities, authorities are requiring taxpayers to submit larger and larger volumes of transactional data and other electronic information. With this increased scrutiny of underlying data, companies must not only comply with reporting mandates, but also understand what the data is telling the authorities.

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