Christian Janisch BERLIN_WMV_720x405 KPMG
Thursday, October 10, 2013 Transcript by TransPerfect
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CHRISTIAN JANISCH: So, no, I donít think the system has kept up with the changes and
that is in two regards.
For one, globalization is too fast for tax authorities and the tax system to adapt.
And the other point, really, is technology.
Technology is moving so fast that it is virtually impossible for the tax world to keep up to
pace with that.
So thereís a bit of a disconnect between the development of business models in technology
and the tax world.
I think weíre lacking behind, at least, 4 or 5 years.
Well, I think tax directors today need to keep up with a few changes.
One, of course, if the transparency; tax is very much in the media spotlight.
So we all have got to learn how to deal with communications a lot more than we did in the
past.
Simplify things and not be too technical.
That is very important and everyone in the tax world has got to learn that.
I think the other piece is really keeping up with the fact that taxes is moving from
income taxes more to, sort of, action-based taxes.
And that means weíve got to understand processes a lot more than aggregated tax world that
we had before.
So this is changing definitely what is asked from us and the skill set of the people that
we are looking for needs to change with it, as well.
I believe it is a question to be discussed very controversially whether really the tax,
as it is, the tax system as it is fit for purpose to deal with the digital world.
If I discuss with my colleagues there are some that say it is; it just needs smaller
amendments to the existing server systems.
Others say it needs a completely new design.
And, as we heard today on stage from Nichola [INDISCERNIBLE 00:01:51] people out there
with ideas on how that might look like.
I think itís a debate still to be had.
I donít know whether that where that will exactly lead us, but I think itís a very
interesting question; probably one of the most challenging ones for tax experts these
days.
We, again, need to make sure that we donít become too technical about it, but it is a
very complicated question to answer and I think weíll only get to a solution if we
discuss properly and analyze properly.
Well itís difficult to say whether it is a concept of new normal at the moment because
it is, again, in constant flux and change.
I think thereís a lot of things we need to adapt to.
As I said, much more process focused, much more technology focused, globalized to an
extent weíve never seen before.
And all these things are here to stay so thatís the new normal, but, again, it is changing
again and fast.
The pace of technology is not slowing down at all so the new normal might as well be
a constant change.
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