The tech advantage: Building resilience amid tax policy shifts

New presidential administration, new priorities

Shifting tax policies will increasingly demand more tech-centric solutions. The expiration of 2017 Tax Cuts and Jobs Act provisions, along with anticipated responses to OECD’s global tax measures, may lead to significant shifts in U.S. tax policies and trade tariffs. The Inflation Reduction Act (IRA) credits and other policies are also under review due to concerns about cost and effectiveness. A proactive response is essential for reading the road ahead. This is where tech-driven innovation comes in: Savvy tax teams are leveraging the latest technology to gain a tactical edge — helping them uncover insights, identify opportunities and mitigate risks while remaining nimble and prepared to tackle new challenges.

2025: A year for strategic, tech-driven action

To navigate policy shifts effectively and meet evolving needs, a robust data and technology strategy is vital. Focus on these three areas for strategic advantage:

1. Data is your north star. A resilient tax function treats data as a strategic powerhouse, unlocking new pathways for process transformation and technological innovation. High-quality data isn’t just about the numbers — it serves as the foundation for making more precise predictions and gaining valuable insights, essential for effective business strategy and risk mitigation. By shifting data validation to the beginning of the process (closer to the underlying ERP and ledgers), companies can detect source data issues early and continuously improve data quality and processes. Automating controls and analytics streamlines these processes, saving time on data validation and reconciliations, tracking changes, improving accuracy, and creating a clear audit trail. Armed with clean and reliable data, tax teams can use historical data and predictive analytics to stay ahead of policy changes, model impacts in real-time and adapt swiftly to evolving scenarios.

Data emerges as the ultimate differentiator, enabling organizations to remain competitive and adaptable. For example, companies benefiting from IRA credits, or planning to, must be prepared to respond to changes in tax legislation and shifts in business strategies. A multi-year analysis of filing data against potential changes and related calculation impacts can help tax teams anticipate these effects. This proactive analysis kick starts strategic planning, compliance with new regulations and better tax outcomes, allowing organizations to fully leverage these credits over the long term.

2. Tax-savvy strategies bring a competitive edge. Companies must weave tax considerations into global strategies and proactively anticipate supply chain adjustments to manage growth, profitability and risk effectively.

Multinational corporations face challenges like tariffs and potential retaliatory measures that could disrupt supply chains and increase costs. By adopting a tax-forward approach, these companies can effectively manage financial risks and safeguard their reputation amid restructuring and transfer pricing changes. Automating customs and duties analysis can help with evaluating different scenarios and assessing potential costs and risks in an unpredictable tariff environment, while also identifying cost-saving opportunities such as credits and incentives. This strategic approach positions tax as a key partner in advancing strategic goals, driving financial efficiency and helping achieve organizational resilience and success.

3. Emerging tech sparks new potential. Early adopters of advanced tech, like AI, can better handle disruption by spotting patterns and trends in large datasets that traditional methods might miss. To fully benefit from AI, your data strategy must consider where your historical data resides and how to access it across various systems. Without proper planning, you may not be able to effectively leverage AI in your planning and reporting.

Remaining agile through strategic technology adoption is crucial for navigating global tax landscape effectively. For instance, President Trump’s executive order opposing the OECD’s two-pillar framework highlights concerns about disproportionate impacts on US companies. Despite opposition, US multinationals must comply with regulations in jurisdictions that have implemented Pillar Two-inspired minimum taxes, including significant reporting obligations. Tech-enabled approaches, like PwC’s Pillar Two Engine, can help assess impacts and align strategies with business objectives. Data-driven insights and AI-powered analytics can further enhance compliance and adaptability to rapidly changing tax laws.

As we move through 2025, I encourage you to focus on these three areas to confidently navigate the complexities of the evolving tax regulatory landscape. By embracing tech-driven innovation, forward-thinking tax teams can keep up with the pace of change, uncover new opportunities, and will be better positioned to navigate evolving challenges with confidence and agility.