8DECEMBER 2022CFO TECH OUTLOOKIN MY OPINIONBy Eli Villaluz, Tax Director, Compliance, EcobatMultinationals, as well as domestic organizations are now faced with new emerging trends of governmental taxing authorities constantly finding ways of increasing its tax revenue base. Moreover, the global tax system has continued to evolve and migrate over to digitization versus legacy analog systems and hard copy tax forms. Along this trend is the continued globalization of commerce, which has encouraged the migration of businesses in all industry facets towards digital transformation. Jeff Bezos, founder of Amazon once said "In today's era of volatility, there is no other way but to re-invent. The only sustainable advantage you can have over others is agility, that's it. Because nothing else is sustainable, everything else you create, somebody else will replicate." ­ Jeff Bezos. More and more organizations have and continue to invest more dollars into transforming their operational enterprise resource planning (ERP) capabilities into digitizing its commerce footprint. Data shows that the global spending trends on digital transformation from 2017-2025 have more than tripled from that of pre-2017 spending and that it is projected that in 2022 alone digital transformation (DX) is estimated to reach 1.8 trillion U.S. dollars. The global shift toward digital transformation and cloud applications has presented new frontiers and opportunities for organizations to re-invent and get ahead of competitive market forces. From customer relationship management (CRM) systems to the financial accounting life-cycle of accounts receivable, accounts payable, inventory cost management, and financial data analytics, organizations need to pay attention and make capital expenditures (CapEx) in upgrading its business application development.Investing in new tax technology is part of that digital transformation journey. Whether in the U.S. or internationally, the tax landscape presents ever-changing tax policies and tax reform. For instance, in just the past five years, the Tax Cuts and Jobs Act (TCJA) was passed in 2017, and the more recent amendments under the Coronavirus Aid, Relief and Economic Security (CARES Act) for changes in relevant tax policies. On the global side, in 2021 more than 130 countries including the U.S., representing approximately 90% of global GDP, joined together in a statement to establish a new global framework for international tax reform.This has brought about the ever-increasing need to implement tax technology in organizations that want to and should stay ahead of the market and ready itself for global and domestic tax reform and the trend toward digitization of taxes. Ideally, an organization should implement some iteration, if not all of the following ecosystem of tax digital solutions:Eli VillaluzEMERGING TRENDS IN GLOBAL TAX AND THE NEED FOR IMPLEMENTATION OF TAX TECHNOLOGY © Statista 2022
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