Tax compliance is shifting from a periodic “close-and-file” cycle to a continuous, data-intensive operating discipline. The pressure is coming from three directions at once: expanding regulatory scope, geopolitical and trade uncertainty, and reinvention initiatives that change where value is created (and therefore where tax risk sits).
What the data signals
Recent global executive survey findings point to a structural change in the compliance burden:
- ~90% of respondents said the breadth of compliance responsibilities has increased over the last three years.
- 85% said compliance requirements have become more complex in the last three years.
- 71% expect to undertake digital transformation initiatives in the next three years that require compliance support, and 41% need compliance support related to new business models.
- 64% of CEOs in a separate CEO survey cited the regulatory environment as the #1 barrier to reinvention – a useful indicator that compliance can either slow strategy or enable it.
Why compliance is being “reinvented”
The reinvention goal isn’t just “lower cost.” It’s to make compliance:
- Faster – so approvals, structuring, pricing, and reporting don’t delay launches
- Safer – with auditable data lineage and consistent controls
- Smarter – turning compliance data into business insight (profitability, footprint, cash, risk)
The new playbook: 4 shifts that separate “compliance pioneers” from everyone else
1) From siloed filings to connected ecosystems
Instead of each tax stream running its own process (corporate tax, VAT/GST, transfer pricing, customs), leaders build one connected data foundation and reuse it across compliance and reporting.
2) From manual work to automation + AI
AI doesn’t remove the need for controls – but it can compress cycle time and reduce rework by:
- automating classification/extraction from documents
- accelerating reconciliations and anomaly detection
- improving “first-time-right” reporting through rules and validation
3) From periodic reporting to near-real-time readiness
Regulatory expectations are trending toward more frequent, more granular, more digital reporting. That pushes tax functions to modernize data and build “always-ready” processes rather than heroic quarter-ends.
4) From compliance as cost center to compliance as decision support
The highest-performing models use compliance data to guide decisions on:
- footprint and supply-chain changes
- product launches and pricing models
- governance and risk appetite
- reinvention initiatives and new revenue streams
A practical 60–90 day start
Days 1–20: Build the “compliance truth”
- map obligations and pain points (cycle time, rework, audit issues, manual touchpoints)
- identify the 2–3 datasets that drive most outcomes (entity, transaction, product/customer, intercompany)
Days 21–50: Create the minimum viable “trusted data + controls” layer
- standard definitions + ownership (who owns tax-relevant data and quality)
- automated validation checks + audit trails
- role-based access and retention rules for sensitive datasets
Days 51–90: Prove it with one end-to-end stream
Pick one area (e.g., VAT/GST reporting, corporate tax provision, or transfer pricing data pack) and redesign it for:
- fewer manual steps
- faster close-to-report cycle time
- clearer evidence and governance packs
