Reimagining tax in a disruptive world
In this blog post, our Tax Executive Director Pauline Lum talks about why the time is ripe for tax functions to change.
30 March 2018
By Pauline Lum, Tax Executive Director, PwC Malaysia
Digitalisation has made it convenient and easier to access information, resulting in increased efficiency and competitiveness. As a result, it has become more important than ever, for you to differentiate your business to stay relevant while remaining compliant in an increasingly regulated marketplace.
Likewise, your tax function too will need to transform to support the rest of your business. It should no longer be seen as merely a cost centre.
Lack of good quality data for tax reporting purposes tends to be the main culprit that impacts the efficiencies of a tax function, increasing time spent to meet compliance requirements.
If data can be tax enriched coupled with other tools like technology and good governance, this will enable tax professionals to be more agile to partner the business on strategic decisions.
As shared earlier, with an increase in regulatory and business requirements, tax functions will need to level up and remain relevant. Tax functions will need to reassess the now to get ready for the future.
To develop a game plan to level up, your current state has to be assessed, coupled with ideas of your desired future state.
We believe that the value of a tax function increases with its level of maturity. There are five levels of maturity.
One size does not fit all - an indication of your level of maturity helps you chart your road map to level up. Whilst most companies expect their tax functions to be agile to partner and move in tandem with their business, there could be different starting points to achieve that desired end state.
For instance, some companies may need to automate and increase the use of technology to unlock time, so that the tax function is able to spend less time on compliance and more on support for strategic decisions.
However, some companies may not have developed a tax function (i.e. accountants double hatting as Tax custodians) and need to focus more on the framework and upskilling the personnel.
Is your tax function ready to cope with the demands of the business and tax regulators? It’s time to level up. I will discuss how to develop a game plan to meet the tax reporting requirements of the future in my next blog post.
Taking the first step to dealing with your tax challenges of tomorrow, starts today.