Internship Report On The Impact of Digitalization on TAX Compliance in Finance Operations: A Study of SGS Bangladesh Limited

Abstract

This report is a reflection of the results and the knowledge which I was able to gain during my internship at SGS Bangladesh Ltd. in the finance department; to investigate on the impact of digitalization on tax compliance in finance operations. My internship had the aim to research in which manner digital transformation enabled better accuracy, efficiency and timing of all duties regarding taxes (mainly concerning VATs and tax compliance). During my internship I was performing different jobs like sales and purchase data upload & receive, parameter setup in VAT management software for managing customer & supplier information, online challan verification of VAT and tax challans, etc. I also gained hands-on experience in preparing Over the Counter (OTC) challans for VAT as well as taxes using computerized system. Besides, it was my responsibility for the documentation and monthly filing of TDS returns (both local and export). The report gives another closer examination of the benefits that SGS Bangladesh Ltd. has due to automation and electronic systems like the VAT management software and the E-TDS of efficient filling that occurs automatically without human intervention and helps to minimize the risk of human error. The report gives another closer examination of the benefits that SGS Bangladesh Ltd. has due to automation and electronic systems like the VAT management software and the E-TDS of efficient filling that occurs automatically without human intervention and helps to minimize the risk of human error. The findings prove that digitalization has played a great role in lessening the workload on employees, minimizing the mistakes during tax filling and sending both VAT and tax returns on time. Another important element of tax compliance and operational transparency, as observed in the current corporate world is the role digital tools can assume when combined with other Internet-based tools and methods, as identified in this report. Overall, the internship is one invaluable observational moment and practice of real-life learning for me, to bridge the gap between the textbook theory and reality through the application of other fields like the taxation field, finance operations, and its use in digital applications through corporate finance.