Taxation in a
digital age

Many tax authorities still rely on outdated systems that are costly to maintain and limit flexibility. These legacy systems struggle to meet taxpayers’ rising expectations for online services, creating a gap between what the online experience taxpayers expect and what the outdated systems can deliver. Modernising these systems is essential for creating a unified, interoperable tax platform that supports real-time data sharing across services and efficient tax administration. For this reason, many tax administrations are looking into transitioning to agile, sustainable system architectures that can better meet taxpayer needs and preferences for digital services

Taxpayers today no longer rely solely on a fixed monthly salary. Many travel internationally, work remotely, or have flexible salary terms. They may be self-employed, earn income from online platforms like Uber and Airbnb, or run small businesses such as coffee shops. Additionally, many are actively investing in stocks and cryptocurrencies. This diversity in income sources makes it difficult for traditional tax systems to keep up.

Companies today face complex ownership structures, cross-border value chains, and multi-location operations. Economic crime is increasingly transnational, with tax evasion representing a form of cross-border financial misconduct that is more complex to unravel. Global business’s diverse and evolving nature makes it essential for tax systems to become more agile and integrated, ensuring accurate and timely tax administration across jurisdictions. Robust international cooperation and data sharing between tax authorities is key to combating the intricate webs of ownership and illicit financial flows that enable tax evasion schemes

Today, tax reporting is still often a periodic activity. To alleviate this fact, integration with external sources is essential for embedding data capture in everyday taxpayer activities. Creating a digital identity is central, providing accurate, trusted income data from all sources, so taxpayers only need to verify pre-filled information.

Tax authorities face difficulties keeping up with frequent changes in legislation, which can result in outdated tax practices and non-compliance. With the completion of the One Stop Shop, the EU introduced CESOP in 2024, the OECD’s GloBE Rules were introduced in 2021, and new initiatives like BEFIT and VIDA are on the horizon. Additionally, local legislation is evolving, challenging the flexibility of current systems with new green taxes and taxes on personal platform income, such as from Airbnb or Uber.

European tax authorities are burdened by uncollected tax debt. It leads to lost revenue, increased administrative costs, and inefficiencies in public spending. The European Commission and individual countries have been working to improve tax collection processes and reduce tax evasion to mitigate this. Still, according to OECD, the total amount of outstanding arrears at the 2023 fiscal year-end was EUR 2.5 trillion, with EUR 710 billion considered collectable.

SOLON TAX is the result of over 25 years of delivering complex revenue management projects. SOLON TAX embraces the evolving tax legislation, addressing the shortcomings of existing products used by European tax agencies, particularly in effective debt collection

SOLON TAX is ready for accelerated deployment, fully compliant with both national and EU legislation. It is based on pre-configured, highly customisable, and adaptive processes and micro-services to automate the assessment and collection of even the most complex income streams

A modular, microservices-based design and out-of-the-box accelerators enable the stepwise introduction of SOLON TAX into the existing IT landscape, removing the need for a high-risk, big-bang approach to legacy system modernisation.

SOLON TAX features an open API architecture with an extensive range of pre-built APIs, enabling it to support increasingly international data exchange and integrate with any existing IT system infrastructure, UIs, registries, and EU data—whether legacy, new, or a combination.

SOLON TAX is a single-priced licensed product suited for future tax expansion and needs, including unlimited installations and users, with a fixed annual software assurance and support fee. There are no hidden extra costs or usage boundaries.

SOLON TAX is platform-independent and cloud-ready, enabling it to scale and deploy at will. It is prepared to handle vastly increasing tax data volumes and sources of the future, being built entirely on well-known leading open technologies to reduce dependencies on Big Tech and vendor lock-in.