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The ideal tax system in 10 years’ time

The ideal tax system in 10 years’ time

This is the 9th and final article from the recent Tax Transformation Summit in London, where tax professionals from the world’s leading brands came together to discuss today’s hottest topics in the tax function: transparency, transformation and technology.  Remco Dewaerheijt, VP Tax & Product Strategy for VATBox, led a panel of industry experts in a discussion about the changing relationship between business taxpayers and the authorities and how they see the ideal tax system in ten years’ time.

The panel discussed the need for internal investments to keep up with the changing digitalisation of tax, and whether C-level management recognises the need for augmented budgets to meet new requirements. John Shuker, an Indirect Tax Partner at PwC, feels it varies. He says,“If you were in a business that’s selling into a lot of foreign markets and is a digital business, you would see tax compliance in those countries that you’re selling into as being something that you need to pay for some software to enable you actually to access that market. Whereas, if, if you’ve got a business that’s actually already in the market, and has got a reasonable suite of systems, it’s sometimes harder, to change those and to make the business case to do that.”

Jose-Manuel Pedron-Garcia, Global Tax Compliance Process Leader at Michelin, agrees. He says, “If you were in a business that’s selling into a lot of foreign markets and is a digital business, you would see tax compliance in those countries that you’re selling into as being something that you need to pay for some software to enable you actually to access that market. Whereas, if, if you’ve got a business that’s actually already in the market, and has got a reasonable suite of systems, it’s sometimes harder, to change those and to make the business case to do that.”“If you were in a business that’s selling into a lot of foreign markets and is a digital business, you would see tax compliance in those countries that you’re selling into as being something that you need to pay for some software to enable you actually to access that market. Whereas, if, if you’ve got a business that’s actually already in the market, and has got a reasonable suite of systems, it’s sometimes harder, to change those and to make the business case to do that.”

Ksenija Cipek*, Head of Tax Risk Analysis at the Croatian Tax Authority’s Ministry of Finance, states clearly, “We cannot stop the evolution, but we can use the advantages of new technologies.”

Mr Shuker continues this point, stressing that you need people that are technology savvy within your tax team within the business, are very close to the business’ IT function and also the IT strategy, “so that when IT developments happen, the opportunities for tax people to seize upon a business change and to integrate as much future-proofing as we can anticipate at the moment into the new system as it’s being developed.”

The entire panel agrees that the main way to ensure a tax system in the next decade is via open dialogue between businesses and the tax authorities.

Click here to watch the full Tax Transformation interview series.

To learn more about how VATBox’s innovative platform empowers financial professionals to make strategic decisions based on their transactional data while ensuring unrivalled compliance and savings, click here.

*Views expressed are personal and do not necessarily reflect the position of the Croatian Tax Authority’s Ministry of Finance

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