To keep pace with tax authorities, companies need new ways of obtaining, processing and using tax data.
As the pace of regulatory change accelerates and tax authorities strengthen their data analytics capabilities, companies must strive to build new tax operating models quickly — within the next few years. For many, this will involve a new way of obtaining, processing and using data, bolstered by a new mix of talent, training and technology — all working together to create sustainable, long-term value.
We call this new model the intelligent tax function. It will be tightly integrated operationally with the rest of the business, and will leverage data, technology and personnel efficiently. The intelligent tax function is very different than the ones we know today. Artificial intelligence will increase the opportunities for applying human intelligence. Tax professionals will be able to analyze data more deeply than ever, adding another skill to their tax resumes.
The data aptitude gap that exists in today’s tax function will close rapidly over the next five years as companies hire more technologists and data scientists, and supplement tax technical training with training around data management and analysis.
This combination of higher data quality, automation, new skill sets and realigned responsibilities will help tax functions achieve the aspirational yet elusive goal of focusing on the highest-value activities.