Corporate Tax Under the Radar Due to Real-Time Reporting

Today, the global tax authorities are increasingly counting on technology. It’s resulting in new challenges for various multinational organizations. It has brought about a change in conventional tax collection methods.

Equipped with e-reporting and e-invoicing tools that enable collecting transactional data in real-time, several jurisdictions comprising Poland, Brazil, Hungary, Mexico, Spain, Italy, and many others have added online tax regimes. And instead of pushing data from the organizations to the tax authorities, today, it’s getting pulled directly by the authorities, at times even when there is a commercial transaction.

Paul Haarman says that tax reporting moves from push to pull

Currently, it’s just the start! Advanced AI applications and analytics are used to scrutinize enterprises, detect red flags automatically, and surface proof that can be useful for deploying higher assessments. Paul Haarman points out that currently; Brazil has executed potent tools for data and analytics for mining the transactional data and cross-checking it from taxpayers for monitoring red flags.

And to function successfully in such an ambiance, the corporations should be serious about their transparency and embrace the processes and technology needed to provide the same in real-time. According to the latest statistics, the data mismatches in the screening process today account for close to 90% of the audits.

The corporate tax departments are under extreme pressure – Views by Paul Haarman

The initiative, as mentioned above, marks massive progress for enhancing effectiveness, innovation, and precision in the government tax authorities. But it also develops challenging compliance issues for the corporations that do business in various jurisdictions.

For instance, besides getting noted for being an early innovator in the domain of real-time reporting, Brazil also possesses the most complicated tax system in the world. According to the latest estimates, a generic business spends close to 1,500 hours on Brazil’s tax compliance. It gets compared to an approximately global average of 234 hours.

And a massive part of this challenge arrives from getting the systems to capture essential details automatically for complying with real-time reporting during the point of sale. According to the practical world view, the data needed to update these real-time reporting information domains gets sourced from various parts of an organization, requiring the finance and tax team to work in co-operation with other technology teams to choreograph this process.

Last but not least, Paul Haarman opines that several corporate tax departments are required to evolve provided they wish to match up with the government’s rapid pace of technology adoption. The in-house system, quarterly reporting, and siloed data are a thing of the past.

Today, corporations need to move beyond that and have access to the transaction-level information and the updated hyper-local jurisdiction tax data in real-time all through various departments. Hence, in the end, it will be all about combating innovation with another innovation.

Also, gradually as the tax collection becomes more increasingly sophisticated, it is essential for the corporations to opt-in for a double down approach on solutions. It will enable them to calculate and analyze sales and the value-added tax automatically in real-time.

Tax Return & Payment in Thailand:

Thai and unfamiliar organizations carrying on business in Thailand are needed to record their government forms (Form CIT 50) within one hundred and fifty (150) days from the end date of their bookkeeping periods. Duty installment should be submitted along with the government forms. Any organization arranging reserves addressing benefits out of Thailand is likewise needed to pay the charge on the aggregate so arranged inside seven days from the removal date (Form CIT 54).

Notwithstanding the yearly duty installment, any organization subject to CIT on net benefits is likewise needed to make charge prepayment (Form CIT 51). An organization is obliged to assess its yearly net benefit just as its duty risk and pay half of the assessed charge sum within two months after the finish of the initial half-year of its bookkeeping period. The prepaid assessment is noteworthy against its yearly duty risk.

With respect to pay paid to unfamiliar organizations not carrying on business in Thailand, the unfamiliar organization is likely to charge at a level rate in which the payer will retain the charge at source at the hour of installment. The payer should document the return (Form CIT 54) and make the installment to the Revenue Department within seven days of the next month in which the installment is made.