The sharing economy involves peer-to-peer sharing of idle assets or services, typically by means of the internet. Moreover, it is some type of online platform. This is a collective sharing that entails sensitive information data demanding for safety and compliance through enhanced management capabilities.
Regulatory Uncertainty Challenges
It is an emerging field growing rapidly and, with increased demand, facing some challenges and concerns regarding regulatory uncertainty as a lot of online economic transactions take place. Such growth at a fast pace is increasing the complexity of compliance functions in a sharing economy. Such rental services are often regulated by state or local authorities and unlicensed entities are not allowed to offer such services.
There is a lack of government oversight and lawsuits over unfair treatment, but the sharing economy has increased pressures on governments. Governments are working on various economic, social, and legal issues to rectify the emerging distortions.
The need for Compliance Management
Here the need for emerging technologies and digital advancement arises to handle large amounts of complex compliance functions. It would not be possible to handle it without technology.
- An appropriate Compliance Management System (CMS) is advanced enough to manage everything in sharing economies. It is a conceptual approach that helps in taking competitive advantage of the highly flexible economic network and sharing platforms also. It ensures the business-to-business dealing should be easy and safe.
- Governments are under pressure on various economic, social, and legal issues due to emerging business-to-business sharing economies and as a result, there is a lot of distortion going on. Sharing economies are adequately captured for tax and create a continual need for regulatory compliance.
- The main concern is the absence of sharing economy-specific regulation that creates chaos and worsens due to poor visibility of regulatory activities.
- The sharing economy poses challenges for tax administrations. These concerns can be acknowledged and solved with the help of CMS before any charges levied by the government on an organization. Tax breaks lead to heavy penalties, especially in the more strictly regulated sectors.
- CMS helps to grab the opportunities present in tax compliance, offered by governments for enhancing tax compliance.
Compliance activities will continue to rise over the period and emphasize the use of technology than adding headcount. Better to be ready from now with an appropriate Compliance Management System for your organization.
BA Fintech ( a joint venture between Boston Financial Advisory Group and Avanze Group) has an excellent product known as COMPLIANCE iNBOX (CiB). It is a Compliance Management software that integrates and streamlines the approach to compliance management. It promises timely and accurate compliance without the typical cost and hassles associated with the activity. Its Dashboard provides a comprehensive view of the status of various compliances and audit activities across an entire business on a single screen. It generates dynamic reports which present information in the form of charts, tables, and data grids which greatly simplify the decision-making process for Promoters and senior personnel and lets them focus on the core business.
Why not give us a call & find more about us? We are here to help you.
Also, we provide free training & support regarding the use of COMPLIANCE iNBOX.
For any assistance, contact us!
We are just a call away!
USA: +1 6099377291
Bangalore: +91 80 2572 4800
Pune: +91 7420061235
Visit our website for more details.