Tax has lately become a high priority and is on more business agendas than ever before. Governments are seeking higher revenue collections, while companies are changing their business models to save costs and invest in new growth opportunities.
Due to the multiple challenges faced in the current economic environment, businesses are under extreme pressure to be more transparent about their tax affairs. Traditionally, the tax professional was expected to deliver solutions to complex business transactions and arrangements. Nowadays, they are also expected to manage tax risk and to align the organisation’s tax commitments with its overall goals. This requires companies to have an effective tax model and control framework in place.
If they are to remain competitive, companies must be able to identify and account for all risks in the business and mitigate these risks with effective tax controls. This will create more opportunities and help the organisation meet its objectives.
A tax function’s ability to deliver value depends on how well it is able to adjust to ever-evolving regulatory changes. A major concern is supplying the resources to address the increased requirements. The effectiveness of the tax function will furthermore be determined by its fit with the organisational structure.
With this in mind, CFOs and leaders of tax functions are exploring new ways of avoiding the missteps of other companies, or are launching well-defined remediation programmes to improve the effectiveness of their tax operations. In addition, companies are expanding the responsibilities of tax professionals and leveraging enabling technologies to improve performance and collaboration.