# The rise of the tax technologist Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-21 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: The Rise of the Tax Technologist: Navigating the Digital Meta Description: Discover how tax technologists bridge the gap between data and technology to ensure compliance and add value to businesses in an ever-evolving tax environment. URL: https://financedigest.com/the-rise-of-the-tax-technologisthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/graphicstock-top-view-of-wo-1736814114533-compressed.jpg) # **The rise of the tax technologist** ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/russell-gammon-e1682072704391-450x602-1736814114390-compressed.jpg) _By_ **_Russell Gammon,_** _Chief Solutions Officer at Tax Systems_ The new era of the digitalised tax industry is well on its way to fruition; Making Tax Digital (MTD) for VAT is in place, with Income Tax & Corporation Tax initiatives to follow. For an industry that has previously been cautious in embracing technology, the required digital transformation could be a major challenge. To [stay compliant with strict MTD regulations](https://www.financedigest.com/german-regulator-stays-vigilant-as-meta-changes-vr-headset-rules.html "German regulator stays vigilant as Meta changes VR headset rules"), and maintain an accurate picture of their tax situation, businesses must have their data ‘in order’. This means understanding it, knowing where the commonalities need to exist, and having seamless data flows between departments which have historically often operated autonomously. While [technology experts have become more common in the tax industry](https://www.financedigest.com/five-industries-benefiting-from-multi-carrier-sim-technology.html "Five Industries Benefiting from Multi-Carrier SIM Technology") in recent years, there is a growing call for the hiring of experts with additional tax data skills to help navigate this new digital territory – a “Tax Technologist”. This is a senior data and technology expert with a wider remit than the tax data professional, therefore connecting two crucial parts of a tax department to add [value to the business](https://www.financedigest.com/three-ways-data-unlocks-business-value-for-financial-organisations.html "Three Ways Data Unlocks Business Value for Financial Organisations "). Their overarching [objective is to ensure that key stakeholders in the tax department have full visibility of the data they need](https://www.financedigest.com/why-coding-needs-to-be-re-evaluated-for-sustainability-objectives.html "Why coding needs to be re-evaluated for sustainability objectives"), and that this data is always correct. With a combination of collaborative [skills and technical](https://www.financedigest.com/banks-and-insurers-right-to-prioritise-technical-skills-in-operational-risk-but-must-not-overlook-training-in-nurturing-talent.html "Banks and insurers right to prioritise technical skills in operational risk but must not overlook training in nurturing talent  ") know-how, this new role will be critical in fusing the team and other business stakeholders to add value to the business, whatever its size or sector. By using [software to automate](https://www.financedigest.com/guide-to-the-most-affordable-marketing-automation-software.html "Guide To The Most Affordable Marketing Automation Software") and digitise tax-related tasks, tax technologists can help organisations reduce errors and improve accuracy, eliminating data silos and ensuring that systems, together with all related processes, are integrated and streamlined. ## **Meeting tax objectives in 2023** Just a few [years back](https://www.financedigest.com/why-well-look-back-on-2022-as-a-defining-year-for-fintech.html "Why we’ll look back on 2022 as a defining year for fintech"), tax technology wouldn’t even have registered on a CFO’s radar. Today it ranks high on the agenda and [finance directors are scrambling to keep abreast of the demands to ensure compliance and increase business](https://www.financedigest.com/finance-management-for-small-business.html "Finance management for small business") efficiency. With the huge numbers involved in enterprise tax filings, [businesses are starting to take a more proactive and strategic approach](https://www.financedigest.com/why-businesses-need-to-shift-their-e-invoicing-approach-from-local-and-tactical-to-scalable-and-strategic.html "Why businesses need to shift their e-invoicing approach – from local and tactical to scalable and strategic") to managing their tax. New government initiatives are also [driving tech](https://www.financedigest.com/the-future-of-energy-tech-and-data-are-driving-change-fast.html "The Future of Energy: Tech and Data are Driving Change, Fast") investment, with speed, efficiency, and accuracy becoming key priorities. These include the MTD programme focusing on digital data to make more accurate [tax calculations and the incoming global Base Erosion Profit](https://www.financedigest.com/spain-readies-new-tax-on-electric-utilities-profits.html "Spain readies new tax on electric utilities’ profits") Shifting 2.0 (more commonly referred to now as Pillar 2) initiative, which is designed to harmonise corporation tax on a global level. [Businesses have become more alert to the importance](https://www.financedigest.com/software-to-display-your-businesss-important-information.html "Software to Display Your Business’s Important Information") of getting tax right the first time and on time – with strict penalties imposed for inaccurate or late filing. All this combined has led [board executives](https://www.financedigest.com/fiat-republic-the-specialist-baas-platform-that-bridges-web3-and-banks-announces-the-appointment-of-two-industry-experts-as-non-executive-directors-to-the-board-of-its-dutch-subsidiary.html "Fiat Republic, the specialist BaaS platform that bridges web3 and banks, announces the appointment of two industry experts as Non-Executive Directors to the board of its Dutch subsidiary.") to realise that the role of the Tax Technologist is instrumental in ensuring compliance and transparency to future-proof their organisation in the evolving tax landscape. ## **Benefits of a tax technologist** There are some clear efficiency gains by hiring a tax technologist. The Tax Technologist will be tasked with getting to grips with the [key frustrations and challenges confronting tax teams and ensuring that senior tax professionals can achieve some concrete](https://www.financedigest.com/truck-mounted-concrete-mixer-market-size-top-key-players-latest-trends-regional-insights-and-global-industry-dynamics-by-2022.html "Truck Mounted Concrete Mixer Market Size, Top Key Players, Latest Trends, Regional Insights and Global Industry Dynamics By 2022") goals. For instance, they could help cut the time taken to produce a [corporate tax](https://www.financedigest.com/irish-corporate-tax-boom-breaks-more-records-in-november.html "Irish corporate tax boom breaks more records in November") return by as much as 50%. The Tax Technologist will hold responsibility for implementing new tax technologies, enhancing key processes and procedures and [assuring the security of data](https://www.financedigest.com/cyber-security-data-re-assurance.html "Cyber Security: Data ‘Re’-Assurance"). This consultative nature will initiate frequent conversations between them and the InfoSec and IT management teams. With their combination of strong IT and tax transformation skills, the Tax Technologist offers a holistic vision of how to bridge the gap between business, [technology and innovation](https://www.financedigest.com/cloud-professional-services-market-to-be-driven-by-technological-innovation-tmr.html "Cloud Professional Services Market to be Driven by Technological Innovation | TMR"). ## **Key considerations for tech-first tax approach** Undoubtedly, organisations will need to ensure they are equipped with the right toolkit to ensure the [success of the future](https://www.financedigest.com/digital-democratisation-through-low-code-the-future-of-finance-success.html "Digital democratisation through low-code – the future of finance success") of tax. But the right collaboration of tax and technology experts with finance decision-makers will enable organisations to better plan and forecast its [business goals](https://www.financedigest.com/business-goals-vs-business-purpose-and-how-to-combine-them-for-success.html "Business Goals vs Business Purpose and how to combine them for success"), with a deeper understanding of the tax impact of any decisions taken. In making some key considerations, business [leaders](https://www.financedigest.com/how-business-leaders-can-adapt-or-replace-covid-related-perks-to-the-post-pandemic-world-while-keeping-employees-on-side.html "How business leaders can adapt or replace Covid related perks to the post-pandemic world while keeping employees on-side") can optimise their business environment for the Tax Technologist: - **Keep up with** [evolving tech – The right tools are vital so that businesses](https://www.financedigest.com/how-banks-will-evolve-to-support-small-business-owners.html "How banks will evolve to support small business owners") can embrace change, upgrade systems and build operational efficiency, despite tighter budgets and increasing workloads. - **Shifting to the** [cloud can be a breeze – By introducing flexible cloud-based or hybrid](https://www.financedigest.com/how-to-manage-identity-in-a-hybrid-cloud-environment.html "How to manage identity in a hybrid cloud environment") on-premise tax-specific solutions, companies reduce the burden on internal IT teams and only pay for what’s required. This [allows tax](https://www.financedigest.com/guidance-for-transfer-of-nil-rate-inheritance-tax-allowance.html "Guidance for transfer of nil-rate Inheritance Tax allowance ") technologists to focus on ensuring compliance and minimising risk. - **The importance of [clean data](https://www.financedigest.com/optable-announces-new-data-clean-room-capabilities.html "Optable Announces New Data Clean Room Capabilities") –** Organisations shouldn’t underestimate the importance of data quality, with the need for clean, consistent data across multiple siloes. Many [businesses have over fifteen different tax-related systems in place when they only need](https://www.financedigest.com/3-reasons-your-business-needs-customer-reviews.html "3 reasons your business needs customer reviews") five cloud-based, interconnected and best of breed. - **Recruiting / skilling-up –** One way or the other, organisations of all sizes can bring in the skills for the Tax Technologist role. These data experts may be found in creating new roles or they may already exist within the finance/tax [team](https://www.financedigest.com/battling-the-evolving-fraud-threat-the-role-of-the-credit-team.html "Battling the evolving fraud threat: The role of the credit team") and could be skilled-up for the role. In fact, the [Chartered Institute of Taxation](https://www.tax.org.uk/ditt) has launched specialist qualifications designed to get people up to speed with this field. **Conclusion** The pressure to automate more processes means that organisations of every size and industry are under pressure to unlock new potentials of [technology solutions](https://www.financedigest.com/grain-and-cereal-crop-market-novel-technological-solutions-will-create-lucrative-growth-opportunities.html "Grain And Cereal Crop Market : Novel Technological Solutions Will Create Lucrative Growth Opportunities"), achieving new efficiencies, and performing confidently and compliantly in the new digital tax environment. Whilst adopting technology will address the legislative changes by providing automacy to functions, only the [companies that fully embrace the new technology](https://www.financedigest.com/impact-com-appoints-a-raft-of-new-business-development-representatives-as-the-technology-companys-client-roster-grows-by-more-than-50.html "impact.com appoints a raft of new Business Development Representatives as the technology company’s client roster grows by more than 50%") will successfully reap the benefits. Businesses that are ready and willing for change, and appoint a tax technologist, will mark a cultural shift in how they see the importance of both tax and technology, and how it can impact the [entire business](https://www.financedigest.com/asset-management-it-solution-market-asset-management-grow-crucial-for-various-organizations-to-evaluate-entire-business.html "Asset Management IT Solution Market – Asset Management Grow Crucial for Various Organizations to Evaluate Entire Business") for the better. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---