In the past few years, several economic reforms took place in the country. Every tax law is an economic tool in the hands of the government. That law empowers the government to levy and collect taxes from its subjects. The law primarily gains that power from the Constitution - Article 265.
Without finance professionals, there is no GST in the country. We can brag about our skills very proudly. Technological advancement and the sweeping changes in taxation are chocking the assessee with new challenges.
There is a huge cleavage between tax law and its awareness in public. The government is endeavouring to impart the tax knowledge to its subjects but due to the esoteric nature of these laws, impeding the object of the government. Lack of awareness in public making them victims of penalties and prosecutions. The delinquent public shall also end up paying high legal costs as well.
We, the finance professionals, are interpreting these laws and assisting the people with accurate tax liabilities. We are also the trailblazers who bridge the gap between reform and the business community. However, the public is unable to utilize the services of financial professionals before committing delinquency.
It is an opportunity for the professionals to come with a model to serve the businesses, especially small and medium businesses, with a BPO model to cater to their bookkeeping and tax return preparation needs. This BPO model reduces the tax litigations and leads to honest payments of taxes. Moreover, it reduces the costs of penalties, prosecutions, and legal fees. It also boosts the taxpayers' peace of mind, as they rely completely on the finance professionals for all their requirements in accounting and taxation matters.
The professionals should develop a system to capture the taxpayers' taxation aspects at the root level of the transaction itself. It is better to serve clients of similar trade or industry. The study of business process is the mantra of this model.
After studying the business process, the professional shall advise the taxpayer about the ideal model that the taxpayer should follow while operating his/her business or service. On honoring this code, the taxpayer elevates himself/herself from the struggler to a performer. The freed-up space from litigations elevates the taxpayer to a new height of pinnacle of success. So, it is always advisable for a taxpayer to rely on an expert's services in the arena of accountancy and taxation.
The business process study gives great insights into the business for a professional. Such study endows new skills to handle from setting up the business to appeal matters of Income Tax. The professional can handle the affairs of the taxpayer with passion and ease. A professional shall always stick to a model that boosts his/her satisfaction. The model that derives success always delivers satisfaction.
Post lockdown 2020, we are witnessing many changes to the way businesses are conducting. During that period, people across the globe suffered to stay at home. That bane has turned into a boon for many now. We are witnessing many novel entrepreneurs in 2021.
A great social transformation has taken place now. People prefer to think more individually than to converge their thoughts with herd psychology.
All these changes are manifesting a new phenomenon in the business and services arena. The mode of trade and service is replacing by new ideas of business. We should constantly monitor our progress to check that replacement is good or bad for our mode of trade/service.
This generation may not be interested in shopping in the bustle. It's more grievance than astonishment to the offline wholesalers and retailers. People with old-fashioned ideas may be ill-qualified to gain anything in the digital age.
The faceless assessment in the income tax law itself will bring a huge change in the consulting arena. The business of consulting in finance and taxation will rise to the top position shortly. This belief is not a hunch but study-based research.
The rough diamonds are emerging as start-up entrepreneurs now. Don't get lost in the change. Be a change.
The author is a member of ICAI, ICSI and ICMAI. He is also a law graduate from Osmania University.