NEW YORK, NY, USA, 25 May 2021—Deloitte today announced the launch of its Tax Transformation Trends survey, which involved more than 300 tax and finance executives globally. Tax Operations in Focus, the first report in a three-part series, reveals tax leaders are increasingly being sought out for strategic counsel as companies accelerate business model transformation. In this report, Deloitte discusses with leaders the fast-moving trends that are driving businesses to shift where and how the tax function adds value, understand their future vision, and how they plan to get there.
Long before COVID-19 struck, businesses in many sectors were trying to accelerate business model and operational transformation initiatives, as mega trends such as digital disruption and climate change presented new risks and opportunities. However, the pandemic intensified the pressure to transform, testing corporate resilience more than ever. “While governments have big decisions to make about how they address mountainous deficits, how they build more sustainable economies, and the future of globalization, companies are positioning themselves to thrive in the recovery by embedding new ways of working and identifying new growth opportunities”, says Andy Gwyther, Deloitte Global Operate Leader, Tax & Legal.
The tax function sits at the interface between companies and governments as these decisions play out, and its strategic insight will be more in demand than ever before. For instance, as companies change their business models for the digital era, rethink their supply chains, or invest in green initiatives, failing to understand the tax implications- in areas where the rules are still nascent and evolving- may leave value on the table, or worse still, undermine the success of the new strategy.
All of this creates a new business teaming and collaboration imperative for company tax functions. “The C-suite can no longer afford for their tax teams to be consumed by routine compliance and reporting activities”, says Phil Mills, Deloitte Global Tax & Legal Leader. “To truly deliver value to the business, the tax function needs to rethink its resourcing model and transform its technology infrastructure to create capacity and control costs. The good news is that tax and business leaders have more options at their disposal to achieve this”.
This research is the first of a three-part tax leader series from Deloitte, engaging tax and finance executives at multinational companies to understand their strategies for tax operations, talent and technology. Deloitte surveyed 304 senior leaders, including more than 100 heads of tax and CFOs in companies across Europe, North America and Asia-Pacific, to understand their future vision for the tax function and how they plan to get there. In addition, Deloitte conducted 15 in-depth qualitative interviews with tax leaders in the consumer goods, energy, financial services, medical technology, and telecoms sectors, among others. To dive deeper into these findings, you can view the full report.