Tax 4.0 - From Back Office to Boardroom

Abhinav Sogani is a seasoned tax professional with extensive experience in navigating the complexities of international taxation and corporate finance. As the Vice President and Global Head of Taxes at Tata Consumer Products Limited (TCPL), he oversees the tax strategy, compliance, and planning for a multi-billion dollar FMCG portfolio that includes iconic brands like Tata Tea, Tetley, and Eight O'Clock Coffee.

Taxation in India was seen as a back-office function, compliance-heavy, techni­cal, and, to many, “boring” with lit­tle glamour. The role of the tax team was confined to filing returns, collat­ing data, and providing information to consultants for litigation.

Fast forward to today, and the tax function has undergone a re­markable transformation. With the government’s forward-looking ap­proach—seeking industry perspec­tives before drafting regulations and making amendments—tax has be­come one of the most dynamic and exciting areas of corporate practice.

What was once routine is now strate­gic, shaping not just compliance but also business credibility, resilience, and growth.

From Compliance to Core Strategy

When I began my career with a Big Four firm and later moved into in­dustry, tax was still defined by silos “direct” and “indirect.” Over two de­cades, I have seen it rise from compli­ance to the boardroom. Today, a tax head is no longer simply reporting to the CFO; increasingly, tax leaders are sitting next to the CFO as Tax Direc­tors—trusted advisors in strategic decision-making.

While I firmly believe that tax fol­lows business and not the other way around, the reality is stark: missteps in tax can derail business plans, in­vite regulatory penalties, and harm reputation. For this reason, the func­tion needs to be reimagined along three integrated verticals: Litigation, Strategy, and Compliance.

Litigation – Close the Past, Secure the Future

Long-drawn disputes drain manage­ment time and shareholder value. The modern litigation approach is about closure, not just defense:

• Maintaining a defense file with full documentation to ensure continuity despite team changes or data losses.
• Expediting closure of disputes to restrict the interest meter and reduce contingent liabilities— especially critical for listed com­panies and during M&A.
• Leveraging amnesty schemes where appropriate to bring cer­tainty and contain exposures.

Strategy – Thinking Beyond Borders

Tax strategy is now inseparable from business planning. It is about fore­sight and proactive alignment:

Real-time documentation and proper benchmarking of related par­ty transactions.

• Embedding ESG considerations since tax transparency increas­ingly feeds into sustainability scores.
• Using Advance Rulings and APAs for certainty.
• Being selective—not every issue needs to be litigated; some may be better resolved through advo­cacy or representation.
• Policy advocacy and profession­al networking to anticipate chal­lenges.
• Extreme caution on cross-bor­der expansions—analyzing corporate tax PE and VAT PE exposures before entering new jurisdictions.

Balancing Risk and Opportunity

The tax environment is complex and dynamic. Businesses face increas­ing scrutiny from regulators, rising expectations of transparency, and evolving global norms such as BEPS (Base Erosion and Profit Shifting) and Pillar Two (Global minimum taxation). At the same time, tax in­centives and credits—whether for R&D, green energy, or digital infra­structure—present opportunities to enhance competitiveness.

The nuanced role of the tax func­tion lies in striking this balance: safeguarding compliance and rep­utation while leveraging legitimate avenues for optimization. Non-com­pliance today does not just carry fi­nancial costs—it directly translates into reputational risks, with poten­tial consequences for investor con­fidence, customer trust, and even employer branding.

Compliance – A Shared Responsibility

Compliance remains the foundation, but it is no longer just the tax team’s burden. Every function—HR, pro­curement, logistics, finance—plays a role. A minor lapse in process can trigger disproportionate risks.

This makes cross-functional training and awareness essential. Regular, practical workshops en­sure that inadvertent errors do not snowball into exposures. Active dis­cussions with auditors add another safeguard—better to face questions internally than to be challenged by revenue authorities with penalties.

Most importantly, companies must recognize that tax non-com­pliance is a reputational issue. In an era of instant news and stake­holder activism, being perceived as a non-compliant organization can damage credibility far more than the financial penalties themselves.

Tax Technology – The Future of Tax

The future of the tax function is deeply intertwined with technology. With regulators themselves adopt­ing real-time digital tools, business­es must stay a step ahead.

• Automation of compliance via ERP-tax integration and AI-driv­en reconciliations.
• Analytics and dashboards (Pow­er BI, Tableau) for real-time vis­ibility on exposures and cash flows.
• Blockchain for tamper-proof transparency in supply chains and cross-border tax flows.
• Generative AI to draft submis­sions, predict litigation out­comes, and manage voluminous documentation.

This is reshaping professional expectations. The tax leader of to­morrow will be a techno-commercial strategist—a Chartered Accountant with fluency in AI, blockchain, ma­chine learning, and data visualization. The “boring” function of yesterday is now one of the most future-forward professions.

Continuous Learning – A Tax Imperative

If there is one constant in tax, it is change. New regulations, new tech­nologies, and evolving stakeholder expectations make continuous learn­ing non-negotiable. Regular trainings both within tax teams and across business functions are the only way to stay ready for the future.

Conclusion – The Strategic Backbone

Tax has travelled from the back office to the boardroom, transforming into a strategic backbone of business. By combining litigation closure, strategic foresight, risk-balancing, compliance ownership, technology adoption, and continuous learning, tax professionals today are far more than compliance officers.

They are trusted advisors, busi­ness enablers, and future-ready lead­ers—ensuring that organizations don’t just stay compliant, but thrive in a complex, transparent, and rapidly evolving global environment.