Digital evolution in Tax and Legal
Tracking this digital evolution closely, Deloitte Tax and Legal is continuously adjusting its services to meet the changing needs of modern organisations.
Transparency: the new normal
As expected, digital evolution is also having an impact on the relationship between companies and tax authorities. Total transparency is becoming the norm. Expect more technology-driven tax audits in such areas as transfer pricing. Moreover, new requirements will be imposed, resulting in the need for additional compliance and documentation. This burden will be balanced by the benefits to companies of digitisation and the resulting standardisation. The expected unification of the European VAT return is a good illustration of this.
Until now, many companies have used a mainly manual process for reporting their tax details. However, paper tax returns are set to disappear over time. In particular, there is a likelihood that the tax authorities will extract the information they need directly from company systems, as is already the case in a number of countries.
Adapting services for today and tomorrow
All of this is affecting the way fiscal and legal services are provided. Deloitte Tax and Legal has anticipated these changes by adjusting its service offering to the needs of today, while preparing for those of tomorrow. For instance, we have invested in digitised and standardized tools, along with expertise in compliance, transfer pricing and international tax. We have also developed specialised software and other applications to manage the digitisation process, including the anticipated evolution towards more standardisation, increased transparency, electronic tax inspection, etc. Deloitte Tax and Legal can now provide comprehensive advice to companies operating internationally in regards to tax, transfer pricing, and compliance matters, including e-filing. Via a central point of contact our clients benefit from Deloitte’s Europe-wide services. Additionally, to address the increasing delocalisation of clients’ decision-making centres outside Belgium, we are engaging in more crossborder consultancy work. As business and its supporting services take on a more international dimension encompassing multiple tax jurisdictions, clients are demanding greater tax certainty. With its global network of local expertise to draw upon, Deloitte Tax and Legal is ideally positioned to serve this need.
As a result of digital evolution, companies’ decision-making centres and production units no longer need a physical presence in their actual sales markets. Consequently, traditional B2C and B2B models are transforming and require appropriate tax and legal support.
Piet Vandendriessche, Managing Partner Tax & Legal, Deloitte Belgium