The better the question. The better the answer. The better the world works. У вас есть вопрос? У нас есть ответ. Решая сложные задачи бизнеса, мы улучшаем мир. У вас є запитання? У нас є відповідь. Вирішуючи складні завдання бізнесу, ми змінюємо світ на краще. Meilleure la question, meilleure la réponse. Pour un monde meilleur. 問題越好。答案越好。商業世界越美好。 问题越好。答案越好。商业世界越美好。

Re-imagining the tax function

Find your path forward

For a tax director, tax issues are no longer limited to legal interpretations of tax laws– the spotlight is on getting the right tax organizational structure, people, processes and technology to effectively deal with the current environment and partner well with business.

Re-imagining the tax function, surveyed senior executives from large organizations in India demonstrates how the tax function is generally striving to keep up with digital advances and push towards achieving transparency and complying with tax reforms. Organizations today recognize the need to be bold and innovative with their tax function to successfully manage the headwind and deliver value. But it also shows that many are struggling to find the right solution. Companies must identify and execute the change required to adapt to the challenges they face and continuingly reimagine their tax function.

Once they decide to act, leading companies typically choose one of the three approaches and each has its own pros and cons:

 
  • Rebuilding or transforming the existing tax function
  • Outsourcing tax activities to a third party
  • A combo of the above two options

Survey report – Key highlights

Industry speaks

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“In a decade or so the government will calculate the tax return for you; tax compliance professionals should have very little manual work to perform”

– Chris DeVito, ex Sr. Director, International Taxation, Johnson & Johnson

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“For executives, the benefits of automation would be consistency, limited dependence on human intervention and institutionalization of knowledge. For me, automation would definitely help improve my comfort level on tax data.”

– Pinky Mehta, CFO, Aditya Birla Nuvo Group

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“In a decade or so the government will calculate the tax return for you; tax compliance professionals should have very little manual work to perform”

– Chris DeVito, ex Sr. Director, International Taxation, Johnson & Johnson

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“The great knowledge management framework can help us have a full archive into how the environment has evolved in the past and how the team has dealt with such changes in the past and how it continues to do so going forward.”

– Niraj Shah, CFO at PNB MetLife India Insurance Limited

Survey insights

 

(Click on each box to know more)

Some actionable insights

  • To cope with the transformation, organizations require the right mix of dedicated resources who can process and leverage technology to improve consistency, quality and efficiency. Tax professionals will need to speak the same language as their colleagues in IT, so one knows how to ask for it and the other knows what the needs are.
  • Proactively access the information likely to be requested by the tax authorities. Build a single “source of data” by way of a tax data warehouse/ data lake. Implementation of technology in tax makes data structured and consistent.
  • Companies will need to invest in intelligent analytics to identify areas of weakness early in the process because they will need to respond to authorities more quickly. Organizations will also need a comprehensive approach to tax controversy that provides a line of sight into the issues at stake and the potential for future conflicts.

Find your path forward

Do companies want to transform their tax function? Do companies want to outsource their tax function? Or is the right answer somewhere in between?

This report explores these options in more detail, using survey results to explain what companies are doing in the aggregate, while offering insights to help companies decide which approach is right for them.

Contact us

EY Ajay Kumar

Ajay Kumar
Partner,
Tax Technology and Transformation,
EY India
+91 1246714220

EY - Garima Pande

Garima Pande
Partner & National Leader,
Business Tax Services,
EY India
+91 1246714943

EY - Rahul Patni

Rahul Patni
National Leader,
Tax Digital,
EY India
+91 2261921544

EY - Sameer Prakash

Sameer Prakash
Partner,
Tax Technology and Transformation,
EY India
+91 1244432210

EY - Jitesh Bansal

Jitesh Bansal
National Leader,
Tax and Finance Operate,
EY India
+91 8067275303