On October 23rd, industry leaders and TAINA representatives convened at the London Operational Taxes for Investment Firms conference to dissect the latest regulatory trends and challenges affecting funds and custodians.
According to Taina, the gathering spotlighted two critical discussions: the transition towards online tax solutions and the upcoming introduction of CRS 2. These panels underscored the pivotal role of technology at the juncture of emerging tax regulations.
During the panel titled “Technology and Tax: The Impending Shift Towards Online Solutions,” experts including Mark Huyan from State Street, Maarten Van Der Hoeven from abrdn, Emma Young from the Ashmore Group, and Rich Kent from TAINA Technology shared insights on the transformative potential of technology in tax compliance.
They highlighted how automation could minimise manual errors and bolster efficiency, enabling tax compliance teams to allocate more time to high-value tasks. Automated data validation, onboarding, and real-time data quality checks were pinpointed as crucial for maintaining accurate and current data, thereby simplifying adaptation to new regulations and enhancing both compliance and operational efficiency.
The “Introduction of CRS 2” panel, led by David Smith of HMRC and Paul Worlock of NatWest, outlined the expanded data requirements under the new Common Reporting Standard set to be implemented in January 2026.
The revised CRS 2 framework mandates more detailed data capture, including distinctions between new and pre-existing accounts, verification of valid client self-certifications, identification of joint accounts and their holders, and categorization of account types. These changes highlight the importance of meticulous data management, which can be facilitated by technological solutions ensuring consistent and automated validation.
Both panels consistently emphasised that data quality is fundamental to the success of tax compliance. High-quality data reduces errors and enables dependable reporting, crucial under the new complex standards like CRS 2. By employing technology to continuously validate and monitor data, firms can proactively manage quality issues, thus enhancing compliance results and mitigating regulatory risks.
The discussions also recognised that adopting technology and automation in tax compliance is no longer optional but essential. Automation empowers firms to efficiently manage intricate reporting, scale operations, and cut costs, thus securing a competitive advantage in the stringent regulatory environment.
Moreover, the rapid adaptation to regulatory changes and new laws such as CRS 2 ensures immediate compliance and sustained organisational resilience. By automating the management of compliance data, firms can redirect resources towards strategic initiatives, transforming compliance from a mere operational necessity to a significant driver of business value.
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