21 March 2018
By Pauline Lum, Tax Executive Director, PwC Malaysia
Big data, machine learning and real time artificial intelligence (AI) data monitoring are among the advancements disrupting the way companies are operating in today’s business climate. Bixby, Siri and Alexa have become our personal virtual assistants and other forms of AI are already starting to replace humans for task focused and rule-based routines.
Over the past few years, we have seen tax regulations being reassessed to cope with evolving business models and to ensure that accurate and fair numbers are reported. In today’s borderless world, there is an urgent need to facilitate transparency and exchange of information to cope with transactions moving at breakneck speed across multiple jurisdictions. In order to stay relevant, it is safe to predict there will be changes in regulation and tools.
Here are some of these predictions:
There has been a steady rigour of tax regulators pushing to closely monitor companies in the current business environment. For instance:
However, while many companies have embarked on Finance transformation journeys, inclusion of tax data and governance has not been as consistent. Coupled with cost pressures, there has been less recognition for the need for agile tax professionals and robust workflows to effectively manage tax risks. I expect to see more companies placing emphasis on these areas with the increase in tax policing mechanisms and tax audits.
With the rest of the business and tax regulators jumping on board the digital and AI bandwagon, it is time to review and assess your tax function’s readiness to cope with their demands. In my next blog post, I will discuss what the key considerations are before you embark on transforming your tax function.
Taking the first step to dealing with your tax challenges of tomorrow, starts today.
Tax Executive Director, PwC Malaysia
Tel: +60 (3) 2173 1059