Legacy tax laws are no longer enough for the modern digital economy. Keeping up with the new regulatory, social, political, and technological changes is difficult for tax authorities, regulations, and legislation. Many issues have arisen due to these recent technology changes like tax evasion, misrepresentation of tax obligations, and fraud.
Now more than ever, governments and tax authorities are admitting the need to embrace new technologies and taking the first steps toward digitizing the tax landscape. The new solutions facilitate transparency and compliance. Moreover, it helps in preventing fraud and improving revenue collections. New technologies like Big Data and Blockchain are contributing to solving many tax burdens and issues. These technologies have been proven to reduce the cost of collecting tax, accounting for intercompany tangible-goods transactions, and automating price setting to help in transfer pricing issues.
On the business side, the new digital solutions help companies, Ahmed Mamdouh & Co. Kreston Egypt provide better tax services for their clients. It enables businesses to improve efficiency and maintain authority's transparency and compliance demands.
Technology Disrupting Tax Landscape
In the last 30 years, most of the jobs, functions, and roles within every organization started embracing new technologies and slowly transforming their performance.
Financial and accounting services have been a part of the digital transformation journey, including tax functions. Tax services are being disrupted with the big data and analytics solutions that help analyze and store massive amounts of data to improve compliance and generate insights that positively impact the organization's financial plans and strategy.
Many of these new solutions are no longer complicated, requiring technical knowledge. The company's internal tax team can usually use it easily. Also, companies that provide tax services like Ahmed Mamdouh & Co. Kreston Egypt provide their clients with solutions to perform their analyses using the latest technologies to get valuable insights on their financial status and stay compliant with the updated tax regulations.
Why Technology is vital for Taxing
Ever-changing regulations present new challenges for the corporate tax as most tax departments don't possess enough time or resources to stay updated with the latest regulations and keep pace with recent trends.
Tax technology is the foundation for the success of the tax services at any business now. It boosts accuracy and compliance, streamlines business processes, and improves transparency requested by regulators. Implementing technologies in tax services require strategic planning and efforts.
Most importantly, outsourcing tax services to companies that implement the latest technologies and specialize in tax services like Ahmed Mamdouh & Co. Kreston Egypt will give your team time to work on core business tasks. This allows your business to elevate the tax profile within your company.
- Accuracy
Tax technology improves accuracy and compliance through extensive data management, enabling companies to stay updated with the latest local or global regulations if the business operates in multiple countries like GAAP, IFRS, and more. It also enhances the audit process and other vital accounting tasks. This is extremely important for multinational companies that must provide real-time information about their income and taxes paid in multiple jurisdictions.
New tax tech solutions provide a centralized data hub with all the reports and numbers to facilitate access from anywhere and anytime. It helps stakeholders seamlessly browse and pull historical data and efficiently run reports to make informed decisions.
- Efficiency
Tax technology offering dynamic dashboards and cloud-based systems boosted the industry drastically and provided unprecedented opportunities to streamline and standardize tax processes. Most importantly, it manages all tax processes end-to-end without duplicating work or effort for any tax service, from corporate income tax to transfer pricing.
Tax technology streamlines processes and enables data to flow efficiently, saving valuable resources.
- Collaboration
Businesses nowadays usually have a more global nature with offices, partners, and clients available worldwide. This poses significant challenges for tax processes. Tax technologies enable tax teams to run and communicate globally without needing full-time tax staff in every country. It offers solutions to globalization challenges.
- Transparency
The recent global mandate is leaning towards providing open financial data for all businesses. Tax transparency can pose a significant administrative burden on the internal tax department. However, professional tax service providers like Kreston and tax technology can relieve this burden by delivering a global approach for reporting, accordingly increasing international compliance and transparency.
Tax technology increases transparency by removing the barriers between tax areas, providing a birds-eye view of all tax calculations, and decreasing the administrative burden of global reporting.
- Real-time Insights
Tax technologies offer valuable real-time insights into all critical data at any time. Stakeholders will have access to encrypted, vast amounts of data that will allow them to make informed decisions regarding tax seamlessly and in real-time. It will help streamline the interaction between taxpayers and tax administrators by connecting accounting systems and facilitating e-filing and e-payments.
Ahmed Mamdouh & Co. Leading Tax Transformation in the Region
Ahmed Mamdouh & Co. Kreston Egypt has always been a pioneer in accounting and tax technologies in Egypt and through its global branches worldwide. Our teams constantly thrive on testing and adopting the latest technologies available for tax services to guarantee our clients' unmatched services.
Since most of our clients operate globally in various jurisdictions, we ensure our tax services utilize tech solutions that facilitate global compliance for all tax mandates in different countries. We guarantee our clients stay updated with the latest legalizations and have seamless communication and access to real-time data.
Leveraging new tax solutions can save your business tremendous costs and valuable assets. It ensures you are always compliant with the tax legalization of each country you operate within. Get in touch with our team, and our consultants will help you explore our wide array of digitized tax services.
References: -
- https://www.financierworldwide.com/the-future-of-tax-technology
- https://www.nalog.gov.ru/html/sites/www.new.nalog.ru/docs/international/oecd/Technologies%20for%20Better%20Tax%20Administration.pdf
- https://blogs.worldbank.org/voices/why-tax-administrations-are-embracing-digital-transformation