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The internal flows of companies in the financial-banking industry can be affected by the rapid pace of legislative novelties
The internal flows of the companies in the financial-banking industry may be affected by the rapid pace of the legislative novelties, the growth of the number of fiscal reports, digitization of the fiscal administrations, and the intensification of the exchange of information between the Romanian fiscal authorities and those of other countries, said the specialists present at the Tax Forum, organized by EY Romania.
The review of operating models, including financial and fiscal functions, as well as the accelerated implementation of technology – so-called digitisation – is shifting from desideratum to obligation. This was the conclusion of the tax Forum dedicated exclusively to the financial and banking sector "Taxation in the financial and banking sector: A photo at the minute and projections for the future", organized by EY Romania.
Gratiela Constantin, manager with the Department for Fiscal Assistance in the domain of Financial Services, EY Romania said that, in order to face the new and even more numerous obligations of report and transparency, the financial-banking companies must revise their fiscal function.
It has shown that, from the perspective of fulfilling the FATCA and CRS reporting obligations, automation, along with reviewing and updating internal tax procedures according to the particularities of the legislation, as well as implementing “training” programs for employees of financial institutions involved in the process of data collection and analysis of accounts – there are some significant aspects that financial and banking institutions should have in mind priority view.
‘The fact that the fiscal authorities invest massively and use new technologies to impose similar amendments in the fiscal function – automation is already not only ‘nice to have’ but a ‘must’. Moreover, the pressure to offer to the taxation authorities a huge volume of data, in real time. They lead to the obligation of transformation of the fiscal function’ said Gratiela Constantin.
At the same time, Andra Casu argues that “digitalization is the key, tax reporting and compliance are becoming increasingly challenging, while the tax departments, in fact, should deal with those elements that bring added value, in other words on creating added value for financial-banking companies.”
EY is one of the biggest companies of professional services at global level, with 312,250 employees in over 700 offices in 150 countries and income of approximately 40 billion dollars in the fiscal year closing on 30th June 2021. EY has over 800 employees in Romania and the Republic of Moldova uses integrated services of audit, fiscal, judicial assistance, strategy and transactions, consultancy to multinational la local companies. EY has offices in Bucuresti, Cluj-Napoca, Timisoara, Iasi and Kishinev.