We are now in a financial era where governments around the world are adopting progressive technologies. These technological advancements mainly focus on digital collection and analysis of tax data. A lot of government bodies are going digital at a rapid pace and companies have no choice but to match this pace of change or face repercussions. Along with, businesses are also experiencing benefits as they get to deploy novel tax technologies. These include reduced risk, enhanced data integrity and lower costs. It has been observed that extracting valuable insights enables business owners to make tax function for a strategic contribution to their business. Businesses should take note that if they are not experiencing innovative tax developments, they soon will.
Why is 'Death of Retail' Greatly Exaggerated?Many people have thought that the rapid rise in online sales means the slow demise of brick and mortar retail. However, the numbers don’t support that conclusion. It has also been reflected in the strong performance of retail in the equities market where retail has outperformed many other sectors in the current and past one year. A famous brand recently reported the highest quarterly sales growth in more than a decade. There are two main reasons for the death of retail to occur:
- The revival of small retailers - There is a sudden resurgence in smaller retailers due to easier market entry. Point of purchase technologies are becoming simpler and less expensive and social media can sometimes serve as a lower cost advertising alternative compared to digital and print ads.
- A symbiotic relationship between retail and sales - The reality is that there seems to be a relationship between retail and sales which causes online sales to cannibalize brick and mortar.
Land Tax: A Burden for AllState budgets are essentially tied to programs related to the education, health and general welfare of people. Fiscal turmoil is causing some states to face the real prospect of having rating agencies downgrade their bonds, which would impede their ability to spend on crucial infrastructure projects that return value to citizens. Also, states are opportunistically using the changing form of retail to capture greater and greater revenue from sales, use and VAT-like taxes, from both retailers and consumers. This complexity has real-world consequences. Noncompliance with some arcane areas of the indirect tax law is high among small merchants, in large part because of the high cost of compliance mixed with a tradition of light enforcement
Key Takeaways from the Whitepaper "How Retail Disruption is Changing the Mandate for Transaction Tax Compliance":
- Businesses and authorities should be aware of the constant changes and advances happening in the financial industry
- As and when retail businesses evolve, the role of their tax departments must also change for better progress
- The importance of budget balancing at the state level has increased to a whole new level
- Nature of tax nexus is changing as a lot more companies have innovated omnichannel approaches to retail