By Shruti Menon Seeboo
The Finance and Tax Academy is organising a landmark annual event on tax tomorrow, marking an exclusive collaboration with the International Bureau of Fiscal Documentation (IBFD). The conference, to be held at the Maritim Resort & Spa Mauritius, will bring together a distinguished gathering of industry stakeholders for an in-depth discussion on this year’s crucial theme: “Global Tax Developments: Challenges and Opportunities.”
As a keynote speaker, trainer and for his inaugural visit to the island, we had the distinct pleasure of sitting down with Prof. Dr. Victor van Kommer, Director of Capacity Building and Tailored Services and Member of the Executive Board at IBFD. He shared his invaluable insights on the constantly evolving international tax landscape and its specific implications for the local economy. This interview delves into his expertise and the key takeaways from this pivotal event. Excerpts:
- What do you see as the single most significant global tax development impacting jurisdictions like ours right now, and what is its most pressing challenge?
The introduction of Pillar 2, and already implemented by proximally 50 countries, a major game changer. Finally, in the corporate income tax system we are heading to international harmonisation. I am in favour, and this is in the tax environment s real revolution. - What is your hope for what attendees will take away from the discussions, particularly regarding the theme of challenges and opportunities?
I like your last wording. Opportunities. We are living now in a turbulent era, with less political stability but at the same time we are in the middle of a digital transformation. We have to say goodbye to old habits and to be open for new challenges. We don’t know exactly which one will be finally the winner, but we have to be agile and flexible. With an open eye for opportunities. Also the tax landscape will change, or is already happening. Thus for the attendees I hope that we can give some energy. Change is not tread on itself. - From your experience, what is the biggest challenge for tax administrations in a world where global tax rules are changing so rapidly?
There are several challenges.
1. Can tax administration recruit the right skills?
2. By the introduction of AI (what certainly helps in routine processes with big chunks of data), users and managers will focus on efficiency, thus maybe less staff, but how to become a thought tax leader, when maybe the junior roles will be skipped?
3. Finally, taxation is more then rules and data, tax is related to political accountability, transparency, role of the state, correlation with economy, social behaviour, psychology, philosophy. This inheritance, part of the social contract, is under pressure. Are we only consumers, or do we want to be something more? Citizens. That’s the cornerstone under taxation and defines the role of the tax administration. - Your work focuses on “Capacity Building and Tailored Services” at IBFD. Could you explain what this entails and how it helps countries build more effective and equitable tax systems?
We help many countries in the world with bringing their staff at a higher level and we do this through our learning and documentation platforms, data collections, research capabilities, training and only for the public sector advice. We focus, in our independent role, on the needs of the country and that is not implementing a blueprint, or one size fit all approach. In many countries we worked in several projects for years and it great to see that all this work has helped these countries in professionalising their staff towards their taxpayers, their advisors, but also to speak out during international meetings and conferences. - How do you see the rise of digital services and data analytics changing the role of the tax professional in the next five years?
It is already changing. Rules, processes and data becoming integrated. I have studied tax law, now I would combine it with data analytics and digital transformation. Certain jobs will even disappear, already happening in the accounting sector, tax will follow soon. - What is the most crucial skill you believe the next generation of tax professionals will need to succeed in this new environment?
What I try to learn students is to understand context. Search engines, AI will give all the answers, but you need the understanding of context to make the right interpretations and connections. Think in a the bigger picture, think holistically. Otherwise you are lost in a dead-end street with some incorrect algorithms and related data. We need critical thinkers and not followers.
