The Business at OECD (BIAC) Tax Committee has launched a set of Principles for the Digitization of Tax Affairs in light of the increasing automation and digitization of tax administration systems and concerns around related data governance. Business recognizes that there is a need to collaborate effectively with tax administrations on the digital transformation agenda for more efficient and effective tax administration.
Business at OECD (BIAC) Tax Committee Chair, Alan McLean, commented: "In recent years, we have seen an increasing number of initiatives to automate and digitize tax reporting on the part of both business and governments. As tax affairs are managed increasingly in a digital format, this new set of Principles is intended to provide a guide of the key issues that we believe underpin effective and efficient systems, including the importance of data privacy and security, harmonization and standardization, proportionate reporting and technology neutrality."
Where reporting processes are being re-designed in a digital format, it is crucial that a holistic approach is taken from design to implementation. In this regard, the Business at OECD (BIAC) Tax Committee believes that active consultation with business is critical to ensure that data reporting requirements can be satisfied in practice and that the relevant data governance is in place.
As the digital transformation of tax is consistently evolving, it is important to note that the Principles for the Digitization of Tax Affairs should be considered as a living document, with updates anticipated in due course. Business at OECD (BIAC) will continue to engage with the OECD on initiatives related to the digitalization of tax systems going forward.
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