To prepare for what tax consequences may lie ahead, private businesses need to develop a globally focused business strategy centered around tax risk management.
“To navigate the post-COVID-19 pandemic landscape with confidence, and whatever this “new normal” may look like, tax strategy will need to ensure that you have the right people, the right processes and the right technology to propel your business forward, seizing all available opportunities to reduce risk,” says Jean-Pierre Lieb, EY EMEIA Tax Policy and Controversy Leader.
Lieb recommends taking the following four steps to help move the organization in the right direction in the current climate:
- Ensure that the organization has enough people, with the right skills, to support the company’s mission, growing tax compliance requirements and potential risks.
- Upskill the workforce to prepare it for the anticipated changes, particularly on tax administration technology.
- Co-source some or all of the routine tax compliance or controversy functions.
- Implement technology platforms that identify and manage risk, deliver taxpayer data in real or near real time, and provide high levels of transparency, visibility and control.
Taking proactive steps now will help organizations prepare for the changes sure to take place in the near future.