Page 3 of 5: The Evolving Landscape from the Client Perspective
Page 3 of 5
The Evolving Landscape from the Client Perspective
Alongside the introduction of anti-abuse laws, clients' needs and expectations have significantly evolved. Continuing with our analogy, today's clients have transformed into their own "doctors," establishing in-house indirect tax functions to manage their tax obligations more effectively.
With the rise of tax industry networks and social media, tax knowledge is now disseminated and shared more widely than ever. As a result, both the services offered and the capabilities of external advisers must adapt to meet these new demands. Client needs have evolved due to several factors, including:
- Globalization: Businesses are now competing on a global scale, necessitating more sophisticated tax strategies.
- Advancements in Tax Technology: The integration of technology into tax functions allows for more efficient processes and data management.
- High-Profile Scandals: Incidents like the global credit crisis and the Enron debacle have heightened awareness and demand for accountability in financial practices.
- Increased Scrutiny from Tax Authorities: Regulatory requirements, such as the standard audit file for tax purposes, have intensified demands for transparency and compliance.
- Rapidly Changing Global Tax Landscape: Evolving legislation and regulations, including initiatives like Country-by-Country Reporting, the OECD's Base Erosion and Profit Shifting (BEPS) project, and new reporting standards, are reshaping tax norms and performance metrics.
- Automatic Exchange of Information in Tax Matters: This initiative has increased the flow of tax-related information among jurisdictions, raising compliance standards.
These shifts have prompted discussions about accountability, pushing both external advisers and in-house indirect tax functions to adopt a more proactive approach in their operations and strategies.