Companies need to invest in upgrading their tax technology as authorities globally are focusing on enforcing compliance and expanding tax base, consultancy firm PwC said in a report.
With other functions in an organisation evolving with technology led innovation and tax being an important component across all functions, it is crucial for tax too to be future ready, said the report titled 'Tax technology: The next wave in business transformation'.
"With the global tax landscape changing dramatically and tax authorities around the world increasingly focusing on enforcing compliance and expanding the tax base, it is imperative for companies to proactively invest in their tax functions and make it more technology enabled," it said.
"The time is now ripe to embrace the right technology- driven tools to significantly augment the effectiveness of tax functions as well, and create a competitive business advantage for our organisations. Once deployed, these technology tools will significantly enhance the efficiency of tax functions and add synergies to the business as a whole," PwC India Partner and Leader (Tax Technology) Rahul Garg said.
The report said that implementation of tax technology can create capacity among employees and augment analysis to ease understanding. It would also improve an organisation's forecasting and scenario-planning capability, ease response to audits, and reinforce data security.
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