As global regulations and mandates continue to evolve at an increasingly rapid pace, the role of IT has become crucial in meeting these standards. Gone are the days when tax could be an afterthought. In order to address the urgency and complexity of governments moving to close the tax gap, experts from KPMG and Sovos recently convened to discuss how businesses and IT should approach this issue.
One of the key points highlighted in their discussion was the need for businesses to have a proactive approach towards tax compliance. In the past, tax was often seen as a back-office function that was dealt with after other business priorities were addressed. However, with the ever-changing landscape of tax regulations, this mindset is no longer viable. IT departments must now be actively involved in ensuring that tax compliance is integrated into the core operations of the business.
This shift in mindset requires businesses to invest in robust IT systems and infrastructure that can adapt to changing tax requirements. It is no longer sufficient to rely on manual processes or outdated technology. Businesses must embrace digital solutions that can automate tax reporting and ensure accuracy and efficiency. This not only reduces the risk of non-compliance but also streamlines the overall tax management process.
Another key aspect discussed by the experts was the importance of data management in tax compliance. With the increasing amount of data being generated by businesses, it is essential to have systems in place that can effectively capture, store, and analyze this data. IT departments play a crucial role in implementing data management solutions that can provide real-time insights into tax liabilities and help businesses make informed decisions.
Furthermore, the experts emphasized the need for businesses to stay informed about the latest tax regulations and mandates. Governments around the world are introducing new requirements and reporting obligations, and businesses must stay ahead of these changes to avoid penalties and fines. IT departments can play a vital role in monitoring and interpreting these regulations, ensuring that the business remains compliant.
In addition to these key points, the experts also discussed the benefits of collaboration between IT and tax departments within businesses. Traditionally, these two departments have operated in silos, with limited communication and collaboration. However, in today’s rapidly changing tax landscape, it is essential for these departments to work together closely. IT can provide the necessary technical expertise, while tax departments can offer insights into the specific tax requirements of the business. This collaboration can lead to more effective and efficient tax compliance processes.
In conclusion, the role of IT in meeting global tax regulations and mandates cannot be understated. Businesses must embrace a proactive approach towards tax compliance, investing in robust IT systems and infrastructure. Data management and staying informed about the latest tax regulations are also crucial aspects of ensuring compliance. Collaboration between IT and tax departments is essential for effective tax management. By embracing these principles, businesses can navigate the increasingly complex tax landscape and avoid penalties and fines.