Vol. 2 No. 2 (2022): African Journal of Artificial Intelligence and Sustainable Development
Articles

Robotic Process Automation (RPA) in Tax Compliance: Enhancing Efficiency in Preparing and Filing Tax Returns

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  • Piyushkumar Patel
Piyushkumar Patel
Accounting Consultant at Steelbro International Co., Inc, USA
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Published 21-12-2022

Keywords

  • Robotic Process Automation (RPA),
  • tax compliance
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

How to Cite

[1]
Piyushkumar Patel, “Robotic Process Automation (RPA) in Tax Compliance: Enhancing Efficiency in Preparing and Filing Tax Returns”, African J. of Artificial Int. and Sust. Dev., vol. 2, no. 2, pp. 441–466, Dec. 2022, Accessed: Dec. 28, 2024. [Online]. Available: https://africansciencegroup.com/index.php/AJAISD/article/view/227

Abstract

Robotic Process Automation (RPA) is transforming tax compliance by streamlining the preparation and filing of tax returns, enhancing both efficiency and accuracy. Tax compliance processes often involve repetitive, time-intensive tasks such as data collection, validation, and reporting, which are prone to human error and inefficiencies. RPA leverages software bots to automate these tasks, freeing tax professionals to focus on strategic activities like tax planning and risk management. By integrating RPA, organizations can reduce manual errors, ensure consistency in calculations, and meet tight deadlines without compromising compliance standards. RPA also enables seamless integration with existing accounting and tax software, extracting and processing data from various sources, including spreadsheets, ERP systems, and external tax authorities’ portals. This automation accelerates processes such as VAT reconciliation, income tax filings, and regulatory submissions, ensuring organizations stay compliant with evolving tax laws. Moreover, RPA’s scalability makes it a valuable tool during peak tax seasons, when the workload increases significantly. The technology’s ability to generate audit trails and maintain accurate records further enhances transparency and simplifies audits, reducing risks associated with non-compliance. As businesses navigate an increasingly complex tax landscape, RPA not only delivers cost savings but also ensures agility and resilience by adapting quickly to regulatory changes. The shift towards RPA in tax compliance highlights a broader trend of digital transformation, where automation augments human expertise, enabling more efficient operations and informed decision-making. For companies seeking to optimize their tax functions, RPA serves as a cornerstone of modern tax compliance strategies, balancing efficiency, accuracy, and compliance in a highly dynamic regulatory environment.

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