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08 September 2025

EY Global Tax Controversy Flash Newsletter (Issue 85) | Navigating the complexities of tax compliance: A call to action

In the evolving landscape of tax compliance, businesses face increasing pressures to balance regulatory obligations with cost management. In his recent article, "Invest now or pay more later: the evolving relationship between tax compliance, audit and controversy," Steve Foster, a partner at EY LLP, draws on over 30 years of experience to highlight the current challenges corporate taxpayers are navigating. The 2024 EY Tax and Finance Operate survey reveals that budget constraints are a significant barrier to achieving a modern tax function. Overly tight budget control can inadvertently result in less rigor, mistakes and a decline in the quality of compliance despite best efforts. As tax authorities become more sophisticated in their use of AI and data analytics, the risks associated with noncompliance are heightened. Foster emphasizes the importance of investing in robust compliance processes and cultivating collaboration between finance and tax teams to manage reputational risk as well as the overall cost for the organization. This article serves as a key reminder for organizations to prioritize compliance as a strategic imperative.

Additional information and links to past newsletters can be found in the attached PDF.

Attachment

Flash Newsletter attachment (Issue 85)

Document ID: 2025-5020

 
 

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