Philipp Rath: “We need IT technicians rather than auditors”

It is a “huge concern” for him to collect the currently seven different transfers of employer contributions every month in one fell swoop and thus relieve the burden on payroll accounting. Rath would like to have the Vienna subway tax completely eliminated, as it is “completely irrelevant” due to the manageable volume – and if the city of Vienna doesn’t have enough money, the tax should at least be integrated into the municipal tax.

A thorn in Rath’s side, who has been working as a tax advisor since 1994 and subsequently also as an auditor, is what he believes is an insufficient allowance for calculating employer contributions in Austria. If the total monthly wage amount (contribution basis) is currently less than 1,460 euros, it will be reduced by 1,095 euros, meaning that taxes only have to be paid on the difference. “The limit has been there for ages and has never been adjusted to inflation,” criticizes Rath.

The expert also spoke to the union and the Chamber of Commerce regarding collective agreements. In total there are more than 800 KVs in the country, usually several in one company, which also affects payroll. He advocates a framework KV for all employees. “But the union can’t do it.” Instead, use text modules. These should now be created and incorporated for the next negotiations.

According to Rath, sustainability reporting is becoming an ever greater challenge, as it would tie up two to three employees, and not just in larger companies. The exam itself is also becoming more and more of a specialist area and people are spending longer on it than desired. In France, for example, there are special, certified sustainability auditors. “You have to do this regularly,” says Rath, explaining this approach. Alternative service providers such as Quality Austria or TÜV would also be in favor of this approach.

New priorities

In general, the focus for tax and auditors would shift. “Almost all invoices are already processed digitally,” explains Rath. When the older generation in his industry retires, traditional auditing will die out. “Then there is more time for balance sheet analysis, for example with regard to valuations or risk weighting.” In Germany, machine-readable digital invoices are about to be introduced; then invoices no longer even have to be scanned, but could be moved directly to e-banking. “If this is also implemented in Austria, we will need IT technicians rather than auditors,” says Rath.

The costs for customers of tax consultants and auditors would remain stable or only fall slightly despite the increased use of digital technologies. “Labor costs have increased by a quarter since 2020 and the software licenses also cost something.”