For most companies, 2020 was a year of turmoil. The global economic slowdown caused by the pandemic has left no country or business untouched. Tax leaders already face disruption with the emergence of new business and operating models, and the varied challenges posed by rapidly changing compliance obligations and evolving international tax policy. However, the pandemic isn't the last disruption tax leaders will face. A turbulent future demands agility and flexibility to enable tax to adapt quickly to disruptive business circumstances. The tumultuous events of 2020 has caused organisations to reassess the resilience of their strategy and created momentum to transform and prepare for the future of tax.
There are steps that tax leaders can take to reset and transform how they operate post-crisis to address current challenges, embed resilience for future challenges and accelerate change in the tax function.
There are three important questions resilient tax leaders must address to build greater resilience into their own tax function and position for the future:
One of the effects of the crisis will be a widening divide between leader organisations and the rest. The critical task for a resilient tax leader is to focus ruthlessly on what really matters to business performance and assess how the tax department can facilitate and enable it.