| | February 20218Even though conversations around Fintech and its advantages have been doing the rounds for a while now, it's only during the last few months, that these have increased. Fueled by the need for digital transformation of sectors, hyper-automation particularly in the tax-technology space has been one of the buzzwords of the year. In tandem with Prime Minister Narendra Modi's appeal for reforms in the Indian taxation system, we are now at the cusp of a revolution that will be defined by technology.Hyper-automation, which will drive tax technology, at its very core brings together multiple components of automation technologies and tools that enables greater automation of work. Through this, taxpayers can benefit from Faceless e-Assessment Schemes (FAS), faceless appeals, and the taxpayers' charter that will result in increased transparency, efficiency, and accountability.Driving the process of hyper-automation, digital twins can be used across processes such as Order to Cash, Procure to Pay, Record to report, and Machine to Machine to name a few. What this seemingly futuristic technology does is creates opportunities for decision modelling which are based on AI derived inputs, machine learning tools, and stream analytics.The Need for a Digital Twin in Tax ProcessesRecently, there has been an emergence of procurement to payment, vendor invoice, and audit reconciliation, and credit assessment tools for banks and NBFCs, along with GST compliance platforms. With hyper-automation having taken over the GST accounting system, and continued developments taking place at a rapid pace, soon, this automation and digital transformation will make its presence felt across all processes in the domain. And by creating this layer across the organization, the Digital Twin of the Organization (DTO) will showcase an overview of the wear and tear in the processes that require automation. In the long run, this will go a long way in limiting penalties while auditing.An important factor to keep in mind about digital twins in the tax space, is that the sooner these are implemented or By Niraj Hutheesing, Founder & Managing Director, Cygnet InfotechNiraj Hutheesing, has chartered the overall growth with a vision of creating a leading Technology brand where quality, innovation and personalized services outdo low cost, make-shift solutions. IN MY OPINIONTax Technology OUTLOOK FOR 2021Niraj HutheesingFounder & Managing Director
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