Alex Baulf, Senior Director of Indirect Tax at Avalara explains how e-invoicing is switching up the VAT gap game.

This latest difference recorded for 2019, equating to a total VAT revenue loss of 10.3% across the EU, is known as the VAT gap. A major concern for governments across the continent, it is typically caused by a combination of fraud and tax evasion, corporate insolvency, corporate bankruptcy, maladministration and legal tax optimisation, among other activities. But it is not a case of total doom and gloom. Indeed, a key headline from the latest VAT Gap Report is that the gap has been reducing between 2015 and 2019. Yet there is no avoiding the fact that €134 billion is still a mammoth loss.

To put it into real-world terms, such a sum could be used to pay for 250 state-of-the-art hospitals or 2,500 kilometres of high-speed railway. The VAT gap is still a major concern, particularly in view of the huge investment needs EU member states must address in the coming years.

Mandatory e-invoicing

So, how can the VAT gap be tackled effectively? There is a strong case to be made for mandatory e-invoicing (also known as electronic invoicing) - not just within the EU but worldwide. As its name would suggest, e-invoicing entails the exchange of an invoice document between supplier and buyer in an integrated electronic format.

It is essentially a more watertight way of enforcing tax laws and maximising VAT collection activities compared to traditional methods of ensuring VAT compliance that typically rely on the periodic reporting of aggregated summary data and rare tax audits.

Leveraging technology and standardised datasets instead allow governments to benefit from streamlined, accurate reporting and a reliable audit trail that can be used to identify fraudulent transactions with ease. In this sense, it is a modernised, drastically enhanced way of improving the transparency of VAT payments and recovery.

The legislation landscape

It should come as little surprise, therefore, that many European countries have already established, or are in the process of establishing, legislation that governs the use of e-invoicing and promotes its use due to unlocking such benefits.

Italy and Hungary stand as prime examples, both having successfully introduced compulsory e-invoicing already. Meanwhile, many other European nations including Germany, France and Poland have outlined their intention to instate mandatory e-invoicing in the coming years.

Interestingly, the European Commission itself is considering the creation of a harmonised framework for standardised e-invoicing that will ensure transparency across EU borders, as well as exploring the possibility of a gradual introduction of obligatory e-invoicing across its member states come 2023.

Such commitments are not limited to EU efforts either. Equally, looking beyond the continent, Saudi Arabia began its rollout of e-invoicing mandate in December 2021, set to be followed by Egypt in January 2022 and Vietnam in July 2022. The business case for companies

Governments aren’t the only party that stands to benefit from mandatory e-invoicing.

Indeed, the benefits for them are clear, yet there is a strong business case to be made for organisations adopting such modernised mechanisms as well. Indeed, there are a variety of benefits that can be realised by companies. Compared to physical processes, digital e-invoicing can be handled and archived in a streamlined manner, saving not only time but equally costs relating to printing and postage. Further, compared to PDF invoicing, e-invoicing could save companies as much as 70% in processing costs.

There’s also a reduced risk of human error, removing the need for manual data entry that is typically required for PDF or paper invoices. This not only prevents administrative issues that are a significant contributor to the current VAT gap, but will save potentially awkward conversations and improve business relations.

As a third example, e-invoicing can additionally improve security thanks to the integration of encryption technology, digital signatures and secure networks, making it not only the fastest but equally the safest way to send and receive invoices.

Embracing the transition

With many countries in the process of adopting mandatory e-invoicing legislation – if not already adopted - it is clear that this form of invoicing could become the norm globally as an effective tool in tackling the VAT gap.

It is therefore imperative that organisations start thinking about making the transition proactively in order to be well prepared for regulatory changes around the corner. Further, businesses trading across territories will need to think strategically and seek to implement an e-invoicing solution that is scalable across countries and regions, as opposed to purchasing multiple individual local solutions as and when new mandates appear.

In the same way that organisations are continuing to increasingly harness technologies to digitise their operations, e-invoicing can provide a stream of benefits to both company and country alike. Early and willing adopters will not only help reduce the tax gap, but will also experience more streamlined tax and business processes, and greater business agility to meet changing requirements as the e-invoicing trend continues to spread in the future.

The value of the pound fell against the dollar and euro over the weekend, as news emerged that UK ministers were planning new legislation to undercut key provisions of the EU withdrawal agreement, giving rise to fears that the UK will face an end-of-year “no deal” Brexit.

The Financial Times first reported that the “Internal Market Bill” would undermine the legal force of areas of the agreement in areas including customs in Northern Ireland and state aid for businesses, risking a potential collapse of trade talks with the EU. Downing Street later described the measures as a standby plan in case talks fall through.

Political backlash followed as Michelle O’Neill, Northern Ireland’s Deputy First Minister, described any threat of backtracking on the Northern Ireland Protocol as a "treacherous betrayal which would inflict irreversible harm on the all-Ireland economy and the Good Friday Agreement". Scottish First Minister Nicola Sturgeon also stated that the legislation would “significantly increase” odds of a no-deal Brexit.

The pound was down 0.6% against the dollar by 10am on Monday for a total slide of 1% against the dollar in the past 5 days. The pound also slid 0.5% against the euro for a total of 0.7% in the same period.

The value of the pound is now equivalent to $1.319, or €1.1145.

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The eighth round of Brexit talks is set to begin on Tuesday, aimed at forming a deal that will allow companies in the UK and EU to trade without being hindered by customs checks or taxes.

The news follows Prime Minister Boris Johnson’s imposition of a 15 October deadline for securing a Brexit deal, recommending that both sides “move on” if no such agreement is reached by that date. The proposed deadline would come far ahead of the slated end of the transition period on 31 December 2020.

Below Felicia Meyerowitz Singh, Co-founder & CEO at Akoni Hub, talks Finance Monthly through the implementation of PSD2 legislation this weekend, with an overview of open banking, what it means for financial services, and what opportunities are in store for banking customers.

It’s been a long time coming but we are entering an era of greater access and better financial services that will finally put the needs of customers first.

The catalyst of achieving this much needed and long overdue result is the culmination of big debate, endless lobbying and necessary government legislation.

For years banks have sat on the most valuable asset to any business: the infinite transactional and financial data of customers that essentially define individual’s tastes, preferences, budgets and - crucially - their requirements for building and planning their lives.

High street banks - reluctant to share their oligarchy of power, held on tightly to this data - unwilling to share it with others - or use it to enrich their consumer experience and put them at the heart of their business model.

With open banking, this power will be wrestled from the big incumbents and data will be available to third parties, SMEs and new digital players. This will lead to a better future for financial services, one that increases competition and creates a greater consumer experience. More businesses will finally have a shot at delivering services that are tailored and relevant to individual customers.

Open Banking will also strengthen the role and influence of FinTech companies that have the agility and open APIs to make data sharing possible and to disrupt the status quo. We have already seen new banks like Starling Bank taking the lead, by creating partnerships with other FinTechs to create a customer rich ‘Amazon of Banking’ experience.

Together with multiple significant other sources of data being made available with consent and through API format, this will finally deliver financial products in a simple and meaningful manner, with automated prompts as companies or market products change, resulting in data innovation and improved financial outcomes, as well as removing the hassle for enterprises, saving time and money.

Key to this is delivering analytics in an easily understandable form without overwhelming businesses - leveraging the rapidly advancing data science technologies, machine learning and AI, as well as outstanding design and user experience is part of the market change we are moving towards. While the UK and EU lead the way, there are early sprigs of global growth for international solutions.

Incumbents are not resting on their laurels. Many banks and financial institutions that make up the global sector are making impressive strides to capitalise on open banking, while also exploring valuable collaborations with new innovators that can help them harness the immense value of their data.

A great example is BBVA, which has embraced the digital movement and has set itself apart from other global offerings and is putting the client front and centre. The Spanish bank has nurtured the development of impressive FinTech firms – such as the digital ID startup Covault- while also making some canny acquisitions to keep it at the forefront of innovation that resonates with a new generation of consumers and keeps them agile and technology focused. This includes the purchase of digital bank Simple.

Open banking also presents some challenges. Exposing large quantities of personal consumer data could increase the risk of cyber-attacks, hacking and identify-theft. The possible reluctance of customers to share their personal data could also derail the initiative. Educating consumers and gaining their trust around data sharing will therefore be crucial to the success of this initiative. So too the need for businesses to share information within a secure platform and for online payment providers to be scrutinised by the rigorous laws in place.

If all goes well, the developments of open banking – and the opportunities they bring to consumers– cannot be overstated. Banks will get another chance at creating better value-added services, while SMEs will finally have the access they need to deliver what their customers truly want and ultimately transform their consumer experience. Additionally, corporates are also now included in the scope of Open banking, increasing pressure on banks to deliver improved services to the neglected business market.

We only hope that customers will see the value of it all to willingly share their data and banks will leverage their relationships of trust to deliver solutions of value to their commercial client base. With their consent, the blueprint for a better future of finance can be mapped out for generations to come.

The VAT House is a respected and trusted EU VAT specialist based in Belgium. It is internationally known and works for large multinational companies, smaller companies that are expanding their businesses on a global scale, as well as accounting firms. Frank Borger, Partner and lecturer on VAT at several major institutions, tells us about The VAT House’s beginnings, principal services and priorities towards their clients.

What is the history behind The VAT House?

Established in 1997, The VAT House has a rich history of advising and supporting large companies and SME’s across Belgium and other European countries. We also assist accounting firms with VAT questions of their clients, large non-profit organisations, and government bodies.

It’s a tough task for businesses to remain up-to-date with domestic VAT laws, European VAT directives and jurisprudence, and the domestic VAT laws in other countries. Managing VAT issues and bringing businesses into line with all the different VAT obligations requires a high level of experience and knowledge.

The VAT House’s mission is to help our clients with this difficult task. It has now 5 partners, which all have a deep knowledge of VAT and an experience of 25-30 years on both national and international level.

What are the principal services the company provides and its priorities towards clients?

We have a wide and comprehensive range of services: advice on VAT, negotiations with national and European VAT authorities, performing VAT audits, supervising the implementation of ERP packages for VAT, e.g. helping to determine VAT codes, organising internal VAT training courses for companies and organisations. We are experienced in almost every business sector.

Additionally, we can assist our clients in VAT compliance matters (e.g. VAT registration in Belgium and/or other countries, filing VAT returns in Belgium and/or other countries, filing Intrastat returns, filing VAT refund applications).

Our daily goal is providing our clients with practical solutions at an outstanding price/quality level.

Have there been any recent updates or changes to VAT rules in Belgium and the EU?

VAT rules are constantly changing. An important trigger is the so-called VAT gap, which is the overall difference between the expected VAT revenue and the amount actually collected. The VAT Gap measures the effectiveness of VAT enforcement and compliance measures in each EU Member State. It estimates revenue loss due to fraud and evasion, tax avoidance, bankruptcies, financial insolvencies as well as miscalculations. For the EU28 the VAT gap is 12.8 % and amounts €152 billion, of which cross-border fraud is estimated on €50 billion. These figures are a strong motivator for governments to take policy measures to improve VAT compliance and enforcement. The European Commission has recently come up with proposals for a far-reaching reform of the EU VAT system. The proposed VAT reform would also make the system more modern, robust and simpler to use for companies and businesses alike.

In the meantime, it is expected that every EU Member State will take internal action to reduce the VAT gap. Businesses must be aware of that and keep an eye on their VAT position.

What are the key issues that your clients face in relation to managing VAT?

One of the main hurdles is definitely the complexity of VAT. As a consumption, tax VAT sits on the skin of the economy. As we know, commercial transactions have become more and more international and complex due to globalisation. VAT rules are moreover not necessary adapted at the same speed as economic life evolves. In that context our clients are happy that they can rely on our knowledge and can trust on our assistance.

What are your recommendations for effective management of VAT?

Always keep ahead of problems. In our practice, clients often call for help when transactions occur. In some cases, it is easy to apply the correct VAT solution. But in some cases, it isn’t and it disturbs the commercial relation between trade partners and the tax position of the company can be influenced.

What upcoming VAT changes should companies operating in Belgium and the EU be aware of?

One should keep up-to-date with the progression of Brexit talks, as well as the major VAT reform that has been proposed by the European Commission.

Contact details:

Email: tvh@vat-house.com

Website: www.vat-house.com

The maxim that ‘failing to prepare is preparing to fail’ is particularly true when it comes to time-critical communication. Companies that take the time to formulate an effective rapid response framework can save both thousands of pounds and potential reputational risk.
Nino Sheikh-Thompkins, from Paragon Customer Communications, outlines how expert guidance can turn a potentially damaging situation into an opportunity to forge a better relationship with customers.

Be prepared to expect the unexpected

The advent of new legislation has generated an increased focus on how companies communicate with their customers. An integral part of this is rapid response communication – when a security breach, for instance, occurs or when there is a sizeable change in interest rates could have a far-reaching effect on a business.

Legislation focused on regulatory reform, such as the MIFID II – due to come into force in January – and the General Data Protection Regulation, which becomes law in May 2018, require businesses to have a clear strategy in place to ensure customers can be reached swiftly and effectively.

Regardless of statutory changes, there are a variety reasons why a business may need to communicate swiftly with customers. These include communicating unforeseen events such as price increases or sudden interest rate rises, to help clients better understand how they will be affected.

This is particularly pertinent in the financial sector, where engaged and informed customers are an important part of a well-functioning market; and to achieve this, people need access to appropriate information so they can make empowered decisions.

While some organisations may already have a rapid response plan in place which can be invoked as necessary, many others may have little or no experience of writing and distributing time-critical alerts.

Formulating a suitable, effective and detailed rapid response strategy may seem like a gargantuan task; however, extensive pressure will be put on resources to meet required deadlines if acting reactively. Without forward planning, the costs of delivery are likely to be increased by thousands of pounds – and up to around £120,000 in some cases.

The risk of using an ineffective or inappropriate method of communication is high, leading to further delays as a second wave of messages is sent and resulting in annoyance and confusion for the customer.

When time is of the essence

There are many options currently available, and new technology that can be employed to provide a rapid response alert in response to unforeseen circumstances is constantly being developed.

Choosing the most appropriate channel is a key factor in ensuring that seamless communication is achieved. Some organisations will have clients who have already expressed a preference on what form of message they prefer to receive, and this needs to be taken into account.

These include:
• SMS messages;
• Email communication;
• Printed letters distributed in the mail;
• A combination of all of the above.

Needless to say, in the event of a security breach, time is of the essence. The creation of pre-prepared, multi-channel templates, ready to be issued to customers with a tailored message, will save valuable time to comply with the 72-hour response deadline.

Is it achievable?

Many businesses may find their existing channels will not be adequate to deliver all aspects of an effective rapid response communication. A robust system will not only dispatch messages, but accurately trace their progress to ensure all customers have been reached within the right timeframe.

Working with a communications specialist will ensure both legal requirements and customer expectations are met. Leading experts will be able to manage any concerns surrounding accuracy, traceability and time frames. In fact, options exist for messages to be automatically deployed to a certain audience in the event that specific conditions are met – particularly pertinent in relation to the MIFID II 10% threshold rule.

An experienced rapid response provider will help organisations plan what action is required, create a choice of templates which can be swiftly edited as required, then trigger the delivery of the message, tracking, reporting and archiving as necessary. This will reduce the impact on the customer and preserve the integrity of the organisation, regardless of the scenario.

In summary, businesses assessing their existing provision should ask themselves:

• Can my current communication provider handle the multi-channel scale of my entire customer base?
• Do I know how best to communicate to each of my clients, balancing their preferences with regulatory requirements?
• Can the progress of each communication be traced, to ensure it is delivered within the necessary timeframe?

If the answer to any or all of these is ‘no’, it’s time to consult a communications expert to help plan, create and deliver an effective rapid response communications framework.

Website: http://www.paragon-europe.com/en-gb/content/paragon-customer-communications

To hear about taxation in Cyprus, this month Finance Monthly reached out to Panicos G. Loizou, a Board Member at KPMG in Cyprus. After obtaining an Honors degree in Economics from the University of Salford, he trained with a big eight practice in Manchester and became a member of the English Institute of Chartered Accountants and subsequently a Fellow member. Panicos has also attended a crash management Course at Wharton School, University of Pennsylvania, Philadelphia. He is a member of the Institute of Taxation by examinations, and a member of STEP and was recently elected as a member of the Council of STEP, taking full responsibility in January.

What are currently the hottest topics being discussed in relation to tax in Cyprus?

The implementation of standards and regulations about exchange of information like CRS and Country by Country reporting, increased the taxpayers’ desire for a last time tax amnesty, aligned with many other jurisdictions. Instead, the Cyprus House of Representatives introduced new legislation which incorporates special arrangements for the settlement of overdue taxes. The legislation has induced a number of tax payers to come forward and declare income and assets not previously reported in their tax returns.

What amendments have been made to the tax regulation recently?

Apart from the aforementioned legislation referring to the settlement of overdue taxes, recent amendments include mainly provisions relating to transfer pricing, as well as amending the tax residency definitions for individuals and non-domiciled individuals. These amendments have already arose increased interest by wealthy individuals and families, who are taking necessary steps in order to comply with the provisions of the new legislation. In this way, they will become Cyprus tax residents and at the same time they would be registered with the Tax Authorities for the Non-Dom status.

It is important to pay attention for the revised definition, meaning that the foreign national who is physically present in Cyprus for more than 183 days within a calendar year, will be considered as a Cyprus tax resident and he/she will be subject to taxation in Cyprus on his/her worldwide income. The definition has been amended to also provide that, an individual who does not stay in any other country, for one or more periods exceeding in aggregate 183 days in the same tax year and is not tax resident in any other country for the same year, is deemed as a resident in the Republic in that tax year, if all of the following conditions are met: (i) the individual stays in the Republic for at least 60 days in the tax year, (ii) exercises any business in the Republic and/or is employed in the Republic and/or holds an office with a Cyprus tax resident person at any time during the tax year, and (iii) maintains (by owning or leasing) a permanent residence in the Republic.

Do you believe there is potential for further significant legislative development in the tax field in Cyprus?

Yes, indeed, as the Cyprus Government is already fostering the efforts to prepare the new legislation concerning the audiovisual industry. Just to be on the same line, the forms of audiovisual communication include television advertising, sponsorship, teleshopping, product placement, on-demand audiovisual media services and radio broadcasting, which aim the provision of programs in order to inform, entertain or educate the general public. Bound by certain criteria, there would be a number of tax incentives such as “Cash Rebate”, “Tax Credit”, tax reduction for infrastructure and equipment investments and VAT return over eligible expenditure. Moreover, special attention is given by the Authorities to the benefits in kind provisions.

In terms of tax structures, what are the advantages for foreign companies wanting to establish a business operation in Cyprus?

Corporate tax of Cyprus tax resident companies is currently imposed at the rate of 12,5% for each year of assessment on the taxable income, derived from sources both within and outside Cyprus. In arriving at the taxable income, deductions on such income and exemptions must be taken into account. All relevant expenses incurred wholly and exclusively for the production of that income are deductible expenses whereas dividends, capital gains or profit from the sale of shares and other securities constitute tax exempt income. Expenses that directly or indirectly relate to tax exempt income are not tax deductible.

What actions has Cyprus taken towards remaining competitive as a financial centre?

In the current fluent, economic and political environment, Cyprus takes all appropriate measures to remain competitive as a financial centre. That includes, considering the measures adopted by other competitive countries and undertaking measures in order to attract business and investments through the implementation of tax incentives.

Website: https://home.kpmg.com/cy/en/home.html

Late payments are an even bigger challenge for those medium-sized companies, with 94% of businesses employing over 50 people reporting that the issue is causing cashflow problems for them. This is according to new figures from Ultimate Finance.

In partnership with BDRC Continental, Ultimate Finance conducted research into the impact of late payments on the SME sector.

Other stats to be revealed by the research include:

• Overall, 81% of SMEs state late payments are an issue for them
• 51% of SMEs believe their business would run smoother if they had fewer late payments
• 82% of SMEs have up to £25k in late payments
• This rises for medium-sized companies which have an average of over £30k in late payments

Late payments within the sector are an increasingly public issue, with the main political parties vowing to stamp out the problem with legislation such as late payment reporting.

Ultimate Finance however, say that this sort of legislation can be incredibly divisive, and recognise that businesses of all sizes have their own cashflow issues. The company is now calling for the business community to come together and find its own solution.

Anthony Persse, Director of Strategy at Ultimate Finance commented: “We know that late payments can have a huge impact on small businesses. It is without a doubt, one of the biggest challenges faced by UK companies. However, there is a deep misconception that it is an exclusively small business issue which is simply untrue.

“This is leading to rules such as late payment reporting, which is creating an ‘us and them’ situation, when we should be seeking a workable long term solution. This is not just a case of the bigger boys picking on the smaller guys; cashflow and supply chain management affects every organisation, and should be tackled by the community coming together to support one another.”

The impact of government intervention has also been questioned by SMEs themselves. In research by BACS, 38% of small business owners questioned were unconvinced legislation would be helpful.

Ultimate Finance, which works with thousands of SMEs across the UK, believes that the business community needs to look at the way cashflow challenges affect companies of every size, and create an initiative or code of conduct that supports businesses holistically.

“We have taken a look at the numbers,” Persse says. “Many SMEs have significant late payment debt and it’s clear that something must be done. But current methods to help aren’t doing the job; just look at the bank referral scheme which is being evaluated for effectiveness.

“The issue is that politicians keep coming up with one-size fits all ideas and trying to dictate to businesses. Both SMEs and corporates are full of intelligent people who understand the challenges better than anyone.

They should be the ones to create the solution, with support from government and the wider industry – not the other way around.”

(Source: Ultimate Finance)

Next up we spoke to Alok Chugh - Partner with EY’s Middle East practice, which is based in Kuwait. He leads the EY Kuwait tax practice and Government and Public Sector tax practice for EY Middle East. Alok has lived and worked in Kuwait for over 23 years and has been involved in a number of consulting assignments (including cross-border planning, application of double tax treaties and the efficient handling of tax and commercial affairs) for project due diligence, business paper preparation or review, and structuring operational activities).

Could you tell us a bit about the hottest topics being discussed in Kuwait in relation to tax at the moment? 

At the moment, there are some very important and bold regulatory changes in Kuwait. Some of the hottest topics for discussions are:

• Value Added Tax: All the 6 countries in the Gulf Cooperation Council (GCC) have signed the Master framework Agreement for implementation of Value Added Tax (VAT) in the GCC. Based on our understanding from discussions with the government officials, the 5% GCC VAT shall be applicable on goods and services by 2018.
• Tax Registration Number and update forms: Recently, the Ministry of Finance has set up a Tax Development Follow-Up Unit (TDFU) within the Department of Inspection and Tax Claims (DIT). The TDFU is setup as a set towards the e-filing module. The TDFU has issued new registration forms that needs to be submitted by all the taxpayers. The department shall use the information in the forms to create their centralized database of taxpayers. Further, all the taxpayers are issued a Tax Registration Number (TRN), which is mandatory to be mentioned on all the correspondence with the DIT.
• New Tax Card Further, the TDFU has started issuing Tax Cards to every company valid for each year and should be renewed on a yearly basis valid for another one year. Tax Cards are compulsory and is now mandate for every company to enter into a contract in Kuwait.
• Business Profit Tax: Kuwait is looking to introduce the New Business Profit Taxes. Based on our understanding, all Kuwaiti and foreign companies operating in Kuwait may be subject to 10% business profit tax under the proposed Business Profit Tax (BPT) law. The BPT is yet to be approved by the Kuwait Parliament. However, considering the recent developments in the GCC relating to the introduction of Value Added Tax (VAT), it is our current understanding that BPT is not likely to be approved before 2019.

What do you anticipate for the sector in 2017? Do you believe that there is potential for any significant legislative developments in the next twelve months? In what ways would these affect Ernst & Young? 

The VAT law is expected to be implemented by January 2018. Accordingly, the businesses have only 10 months to prepare for the VAT implementation and ensure the contracts have been amended to that effect and the IT systems are updated to ensure compliance with the laws. It affects EY in the way that we, as consultants need to be ready with our teams of professionals, for pre and post implementation phase of VAT. Considering the integrated model that we operate in, as a global firm, it gives us an edge in the market. In this respect, we have already mobilized our team of experts in the indirect taxes from around the world and we are already assisting many of our clients with the first phase of VAT impact assessment, assisting them in reviewing their contracts and IT system as part of VAT readiness.

Have there been any recent regulatory changes or interesting developments?

The Kuwaiti authorities are working on implementation of the economic diversification strategy. This task has become quite pressing, taking into account the current financial position of Kuwait. A number of fiscal and regulatory reforms being implemented aim at reducing the economic burdens of doing business in Kuwait. The two new regimes: Kuwait Direct Investment Promotion Law and Institutionalized Public – Private Partnerships may contribute to this process both in terms of attracting foreign investment in to the country and for diversification of economy.

You joined Ernst & Young in 1994 - how would you evaluate your role and its impact thus far?

Within a couple of years of my joining the firm, I realized the business prospect for our practice to grow and for my career professionally. With the support of the management, I was able to grow to an Executive quickly and then eventually, I became a Partner in 2008. Over the years, our tax practice has grown to a strong team of 46 professionals, with a market size of 65%- 70% of the tax practice in the country.

When you first joined EY, what were your goals in driving change within the company? How have these evolved in the past 23 years?

As I mentioned, when I joined EY, I realized the potential in the market for our practice. I was certain that we would go through changes in the way our clients would require our support and the manner in which we would serve our clients.

I have learnt and experienced that it is important for any organization to continue to learn and adapt itself to the change in the market. As they say, “to improve is to change, to be perfect is to change often”. Given that we are part of the professional world, we need to anticipate the changes outside the organization and be prepared internally ahead of those changes.