In this episode of Tax Leaders Unplugged, host Stevi Frooninckx interviews Sara Mendiola, the Tax Technology Manager at LyondellBasell, to explore the critical decision-making process of buying versus building tax technology solutions. Sara shares her unique professional journey, insights on evolving tax technology, and a real-world project involving the standardization of audit files across different jurisdictions. The conversation dives deep into considerations for choosing the right strategy, such as skill sets, resources, stakeholder involvement, and total cost of ownership. They also discuss the importance of executive sponsorship, documentation, and change management strategies. Additionally, Sara emphasizes the innovation potential through hackathons, highlights the benefits of embracing failure, and advises tax professionals on advocating for tech transformation. This episode provides invaluable insights for tax and IT teams aiming to optimize their tax solutions and navigate the complexities of technological integration.

In this episode, we cover:

02:17 The Evolution of Tax Technology

03:28 Importance of Processes in Tax Technology

06:42 Buy vs Build: Analyzing Tax Technology Solutions

09:07 Case Study: Implementing Standard Audit File for Tax

15:11 Pros and Cons of Building Tax Technology In-House

20:18 Cost Considerations in Tool Replacement

20:43 Employee and Customer Experience

21:03 Time and Compliance Constraints

21:28 Vendor Solutions and Tax Expertise

22:14 Internal vs. IT Team Development

24:02 Examples of Build vs. Buy Decisions

26:25 Change Management in Implementation

30:34 Next-Generation Technologies and AI

36:16 Hackathons and Innovation Challenges

40:12 Key Takeaways and Final Advice