Stricter Tax Compliance, Transformation Key for Organisational Success: PwC

Cross border sharing of information and data has made tax functions of businesses more challenging and stricter tax compliance and focused approach on tax transformation will be crucial for organizational success, a recent study by PwC India said.

“Stringent compliance and reporting requirements, and incremental operational intricacies have made the tax function for businesses all the more challenging,” the report said. It added that advanced technologies including generative AI (GenAI) are increasingly trans- forming businesses, reinventing systems, and gradually reshaping the tax ecosystem.

Enhanced tax transparency ensures tax certainty, which is pivotal in building trust of stakeholders for businesses, the study titled “The three T’s of tax technology, transparency and trust” said. “Tax disclosures previously centred around investor needs, these disclosures are now broadening their audience and scope, and going beyond just reporting the effective rate of corporate income tax,” Sanjay Tolia, subject matter expert said, adding that it can solidify a company’s credibility. The report also prescribed that businesses should design tax functions that are future-fit and provide accurate data speedily to the tax authorities. It should be in sync with newer compliance requirements like Pillar Two, e-invoicing or the Carbon Border Adjustment Mechanism (CBAM), among others. “In our analysis, we have taken a closer look at the role of technology, transparency and trust in reshaping tax functions for the future,” Gautam Mehra, partner, PwC India, said.

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