Big data: Helping businesses with indirect tax obligations

[SINGAPORE] With indirect tax an increasingly favoured source of tax revenue in many jurisdictions, the reporting obligations for companies which have to pay such taxes - especially when they have to do so in different countries - have increased.

Coupled with the fact that many tax authorities, such as Singapore's Inland Revenue Authority of Singapore (IRAS), now use data analytics to help them scrutinise tax returns, a situation arises where companies need all the help they can get to stay on top of things.

"Tax reporting begins and ends with data - but the variety of indirect tax data required by different jurisdictions and the sheer quantity of relevant data now generated by large organisations can present logistical issues for its effective collection, storage and analysis," said Phil Robinson, EY's global director of Indirect Tax.