Transforming tax operations: now, next and beyond

Darren Beardsley, Principal, Tax Technology and Transformation Leader in the EY Financial Services Organization, identifies the three ways that the tax operating model is a core performance component to any enterprise and notes that the value it provides benefits the entire firm. Financial firms that have successfully transformed their business are those that included tax at the decision-making table. He also shares insights on how tax organizations have been highly resilient despite the significant disruption of the global public health pandemic and suggests ways to address ongoing challenges in managing talent, digital workplaces and cost pressures.

We examine how workflows in tax operations have been challenged by the global public health pandemic. While some firms experienced significant backlogs and disruptions, others continued to operate by virtue of having already embraced the #FutureOfWork mentality. Leading practices include remote work, digital applications, intelligent automation, and data analytics that support the highest levels of customer service all while avoiding disruption to tax operations.

Mike Johnson, Partner, Indirect Tax Leader in the EY Financial Services Organization, outlines the key issues affecting indirect tax operating models stemming from the global public health pandemic and identifies the key characteristics of organizations that have successfully managed challenges to date. By assessing current shortfalls and tax planning for a future state, organizations can build efficient and cost-effective operating models that anticipate the impending tax implications at local, state, federal and global levels.

We discuss the regulatory burden from tax form validation and how the pandemic has caused financial institutions to reconsider how they handle paper forms. The optimal response automates onboarding and tax form validation from the start of onboarding, and the most effective implementations also integrate with other systems and records to enable straight-through processing. Learn more about the risks financial firms face if they don’t shift soon to an advanced customer form validation process.

Ian Bradley, Partner, Customer Tax Operations and Reporting Services Leader in the EY Financial Services Organization, observes how the disruptions of COVID-19 have impacted operational tax throughout the full compliance lifecycle. Organizations have generally been risk-averse in changing legacy processes in operational tax, but these attitudes are changing given recent experiences and cost pressures. Click here to learn more.

A successful tax department requires an end-to-end, integrated operation and workflow. By delivering a single view of an investor or customer through a consolidated command console, financial institutions can improve customer service while boosting efficiency of tax operations. The high-automation potential makes it an ideal place for COOs to not only achieve better governance, speed and efficiency, but can also offer savings to a firm’s bottom line.