Tax professionals are leveraging technology and data skills to spend less time on tasks like data mapping and instead on critically evaluating and reviewing results, Priyanka Chaudhry, EY Global Delivery Services Tax Leader observed.
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"A huge part of what we do relates to tax compliance. The environment is changing at an unprecedented pace, especially with base erosion, profit shifting (BEPS), and new tax legislation being enacted globally," she said. Tax is a seasonal business with compliance deadlines concentrated in certain parts of the year, so there is a need to balance the workload.
Explaining the volume of tax compliance companies are expecting related to BEPS is what the company focuses on, both in terms of the services clients need and the skill sets teams require to deliver that, she said hundreds of data points will help prepare the set of compliances coming into effect in next few years.
"Our approach to service delivery around BEPS starts with the tax technical rules. We've begun investing in a baseline understanding of common BEPS rules. However, each country will adopt these rules differently. So, keeping up with these changes as they come into effect is crucial," she said.
Speaking about the preparation of these compliances, she said data skills are essential for handling the hundreds of data points, with automation expected to play a significant role in the company's service delivery.
"When it comes to training and learning, we're investing in data skills and automation to prepare for compliance, while addressing those final, country-specific nuances," she added.
With technology, tax professionals can focus less on routine tasks and more on generating value-driven ideas for clients. They will have more time to review results owing to better access to data and analytics, said Chaudhry, adding that certain technologies are transforming how the company delivers tax services.
"We are leveraging AI and GenAI in our tax processes. Significant time is spent on data -- managing the workflow, handling the volume of data, and analyzing data to meet our tax compliance needs. Beyond compliance, there's also a focus on reimagining tax advice. Clients expect us to add value by providing insights and driving value across their business agendas," she said, stating that using AI to analyse data and deliver tax advice can provide a holistic view.
Chaudhry explained that with indirect taxes or the customs and valuation space, which the company calls global trade, it is exploring the application of GenAI in how goods are classified. "This is an early use case we're working on, aiming to handle the classification work, review classifications, and test the accuracy of these models. It takes time to build trust in them, and we want to be comfortable with their accuracy."
To map trial balances in the tax world, mapping efforts are being automated. Alongside, Gen AI can also be used to incorporate client-specific fact patterns and improve the tagging of these trial balances by building in client-specific knowledge, rather than just the initial automated tagging, she said.
The predictability such technologies bring can also improve tax compliance by anticipating trends. "For example, if my VAT liability this month is an outlier compared to previous months, I can investigate further.This approach can be applied to transfer pricing or corporate income tax results as well, prompting us to ask different and better questions," the leader stated.
On the other hand, Government agencies are likely using similar methods to anticipate the impacts of different tax policies, she said.
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