Tax & Legal - helping our clients operate on a global scale
Tax & Legal has had another strong year. Despite the impact of COVID-19, we grew our revenue by 11%. We did experience a slow-down after the pandemic hit, especially within mergers and acquisitions (M&A). However, it did not affect us as much as we expected, and we saw an increased demand for other services such as research and development incentives, supply chain transformations, and governmental aid package utilisation.
The growth was primarily driven by a combination of new service offerings such as SAP S/4HANA, tax technology and global complexities such as transfer pricing and outsourcing of compliance services. We also managed to win a few large contracts that involve handling all of our clients’ global compliance obligations.
The pandemic did put pressure on our leadership skills, because learning to lead and support our people from the distance was a challenge at first. However, it was a challenge that we as a team managed to overcome.
An increased demand for global services
The past year we have also seen an increase in the demand for legal services. This is partly driven by the fact that Deloitte provides legal services in an increasing number of countries, while many clients see the advantage of having the same tax and legal service provider – especially in restructurings and M&As. Within the latter, we have also experienced growth, which to a large extent is due to the fact that we have assisted a number of Danish multinational clients with foreign acquisitions.
"We are proud to have been awarded the Transfer Pricing Award, which is a testament to our ability to work globally and with the brightest talents in the industry"
We are proud to have been awarded Transfer Pricing Firm of the Year at the 2020 ITR European Tax Awards. Finally, we continue to see the benefits of the global integration within Deloitte. The formation of Deloitte North & South Europe has enhanced our cross-border collaboration and thus given us additional benefits in how we serve our international clients as well as a higher degree of mobility within Deloitte.
Talents and transformations will drive future success
Over the previous years, Tax & Legal has managed to attract, retain and promote talents through a strong talent pipeline and a focus on diversity – in all forms and aspects. More than 50% of our fantastic Tax & Legal colleagues are female, and diversity will continue to be a key focus area in our talent development.
Looking ahead, we expect that COVID-19 will have a short-term effect on the coming year. However, we expect to see an increasing demand for our services in the long term – partly due to the many business transformations we expect among our clients.