8MAY 2021Seeing is Believing: The Evolution of Tax Administration is Happening NowBy Melissa Hall, SVP, Global Tax, AssurantSeeing is believing, but did you know that if you don't believe it, you won't see it? There will be significant changes to tax compliance and controversy administration over the next ten years; the evolution is happening now, right in front of our eyes. Revenue authorities will engage with taxpayers differently in the digital age. There are already several levels of digital maturity amongst revenue authorities that present risks and challenges companies should recognize now and position for in the future. At the lowest level, "E-filing," taxpayers file tax returns electronically using standardized forms. Other types of electronic engagement include providing revenue authorities digital feeds of source data such as trial balances and invoices or handling entire audits electronically, in real time and across multiple businesses and jurisdictions.Nearly 30 countries have already implemented some form of digital tax reporting requirements, with many of the early movers being developing nations. Brazil implemented the Public Digital Bookkeeping System in 2008 and has since required companies to provide tax information electronically. Mexico requires companies to integrate systems with the government and provide VAT activity in real-time. Italy and the UK have rolled out IN MY OPINIONRevenue authorities will engage with taxpayers differently in the digital age
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