Tax Administration Consulting: Making technology-enabled compliance work
Public interest in tax is no longer restricted to tax laws alone. Society demands that tax administrations are fit for purpose and operate fairly, effectively and efficiently. To meet society’s expectations, governments and tax administrations need to have a clear vision and strategy on tax administration operations and effectiveness. This vision and strategy must be based on a deep understanding of the tax environment and in-depth knowledge in a wide range of areas, including technology.
Tax Administrations around the globe are asking the following questions:
- How can we increase the level of voluntary compliance by adopting enhanced compliance risk management strategies as cooperative compliance and taxpayer services?
- Can we indeed make our processes more efficient by implementing technology? If yes, what possibilities are out there and how do we make it work in practice?
- How am I going to deal with tax data and tax systems that were introduced in the pre-digital era?
- How do we collectively manage enhanced transparency requirements, tax law simplification and tax reforms, legal barriers, cyber security and confidentiality issues, capacity, resource and budget constraints?
- What can I learn from tax administrations around the globe? What works and what does not?
- How can I measure performance in line with my strategy and goalsetting? Which KPIs do I need and how to measure them?
- What do I need to do to improve risk based auditing, distribute my audit capacity more effectively and optimize audit processes?
- Will I be able to retain or hire sufficient qualified people given the growing wage and age gap with the private sector? Can we and how to train our current staff in digital transformation?
- How to manage change management effectively? What are the capabilities I need to ensure continuous change? Where can I find budget for the digital transformation?
- How do I improve communication and our reputation with taxpayers and other stakeholders like politicians and NGOs?
How PwC can help
- Enhancing audit capabilities and fighting fraud: We design and implement technology-enabled, risk-based and taxpayer-centric audit methodologies. This includes taxpayer portals, fraud and data analytics, continuous auditing of taxpayers and change-management programs for the organization and its people.
- Cooperative compliance modelling: We design and implement sustainable, tailor-made cooperative compliance models that yield measurable benefits for both tax administrations and taxpayers.
- Certified tax assurance program: We help to introduce third-party verification programs (‘Tax Assurance’) of taxpayers’ Tax Control Frameworks (TCF). This gives comfort to taxpayers, tax administrations and other stakeholders on the quality of the TCF (‘Justified Trust’).
- Blockchain pilots: We can assist in introducing Blockchain pilots. For example, a sustainable ecotourism tax based on Blockchain or a pilot Blockchain VAT system. This offers a scaled approach to understand how Blockchain technology could add value in achieving your goals.
- Performance-measurement modelling: Performance measurement is an important element of change management. We enable organizations to measure the performance of their processes, technology and people.
Why PwC?
Our Tax Administration Consulting practice supports tax administrations, intra- and intergovernmental organizations, development banks and government agencies in designing, optimizing and implementing sustainable and operationally functioning, technologically advanced tax compliance infrastructures.
Our experience
- We know the tax landscape and its challenges. Positioned between the business community on the one side and tax policymakers, political decision makers and tax administrations on the other, we have gained a deep understanding of the tax environment, the business environment and the skills that are required to build a sustainable tax compliance infrastructure.
- Operating at the forefront of cooperative compliance modelling, we develop services that enable businesses to realize the full potential of this game-changing concept.
- We work in strategic partnerships with other leading industry operators as well as with renowned academic institutions. This enables us to provide subject matter expertise from the world of governance, tax law consulting, technology, and independent academic research.
- We have extensive experience in advising, supporting, training and working with governments and tax administrations around the world.
- We work closely with leading international financial institutions, development agencies, and non-governmental organizations, which also includes contributing to publications and seminars.
- Our global, multidisciplinary and multilingual team includes former tax officials who are familiar with the inner workings and cultures at tax administrations.
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Partner, Global Sustainability Tax, Legal and Workforce Leader, PwC United Kingdom
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