Although data is not a new issue for tax it is fast turning into one of the major enablers for future state tax functions. Tax authorities continue to move ever closer to real time data extraction and e-auditing with new legal requirements coming thick and fast. There has never been a greater need for tax departments to be data literate in order to meet the challenges ahead.
Tax functions can be timid in their demands of data, and many are struggling to understand the role they will play in driving the improvements needed within their organisation. But if tax departments aren’t driving tax data quality improvements – who else within the organisation is? And what are the logical first steps to take?
Many companies are at various stages of finance transformation such as Enterprise Resource Planning (ERP) system deployments or a move to finance shared service centres.
Data is a key input to technology, and unfortunately the lack of data quality can often delay tax technology solutions.
So, in reality what does this all this mean for tax departments? Certainly there is an increased workload as a disproportionate amount of time is being spent on improving base data, rather than value add activities. Couple that with an increasing need to drive efficiency and cost reduction and it’s no wonder data has found its way onto the list of the top five priorities of the largest organisations. Sensitising tax data also topped the list of priorities for improvement to tax technology projects.
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