Perspectives

Unlocking new value with tax innovation

Driving tax function effectiveness with technology and talent

Deloitte's latest Global tax management survey took stock of the global tax risks today’s leaders face and the priorities they’ve set. The first two articles in our four-part series spotlighting key insights from the survey results explain the different ways tax leaders define value and the critical role tax innovation plays in delivering it.

Varying definitions of value in global tax

Many CFOs of multinational organizations are looking for their heads of tax to be trusted advisers by delivering greater value to the business. And while many tax executives embrace the opportunity, they’re finding that delivering value can be easier said than done.

Our latest Global tax management survey shows that after meeting many recent demands to cut costs, respond to technology advancements, and streamline processes and tax internal controls, more continues to be asked of tax leaders. This is even more true today, as existing pressures are likely to be exacerbated by market disruption from the COVID-19 global pandemic and the potential economic impacts that arise from it.

Value may mean different things to different businesses. For tax leaders to deliver real value to their broader organization, they first need to collaborate with the CFO and other key stakeholders to define an aligned vision of “value” in this context.

Realizing value from the tax group could mean:

  • Enhancing tax risk management
  • Reducing the costs of tax and tax management
  • Anticipating what’s ahead

Download the POV (PDF) to learn more.

Turning that value vision into reality through tax innovation

As organizations across the globe embrace new technologies, tax leaders are taking note—and action. More than half of respondents to the Global tax management survey have increased their focus on digital and tax technology in the past two years. Using technology to increase tax function effectiveness by streamlining operations and tax internal controls, reducing costs, and delivering value, is another trend that will likely accelerate during the COVID-19 pandemic.

Tax leaders are facing unprecedented external forces, even as they’re often asked to “do more with less” in their organizations. While exponential advances in technology are challenging enough, add to that the ever-shifting regulatory requirements, an overload of data, and the transformation of their businesses and/or business infrastructures, and it’s clear that many tax leaders are looking for ways to respond. The call to do more with less has been further amplified as the implications of the global pandemic and subsequent economic impacts continue to unfold.

Increasingly, those leaders are finding solutions by employing new technologies that fuel tax innovation. And while these mounting pressures—both those anticipated and unforeseen—require quick movement to address critical needs, there is a significant opportunity to consider and invest in technologies that can help the tax department flex and scale to face current and future uncertainties.

Let’s take a closer look at the interrelated drivers behind the increased focus on tax innovation technologies and how tax leaders can leverage them to bring new value to the business.

Download the POV (PDF) to learn more.

Talent’s role in tax function effectiveness

While leaders of global tax organizations address the pressing challenges of ever-shifting regulatory requirements, fast-paced changes in technology, and data overload, they are also tasked with addressing the human side of the equation—that is, a looming shortage of qualified tax talent. At the same time, disruption and economic impacts from the global pandemic are likely to heighten the challenges of tax talent management.

According to the Global tax management survey, many tax leaders already understand the importance of a strong team: “Getting the right talent and resources in place” now ranks on a similar level to more long-held priorities, such as improving process efficiency and driving value and insight. But a decreasing pool of available talent, combined with changing skill set requirements for tax professionals, is making it more difficult for global tax leaders to effectively build the teams they need.

Let’s explore the future of tax talent—and how tax leaders can respond to the changes by appropriately sourcing and developing the tax skills they will need in the years to come.

Download the POV (PDF) to learn more.

Tax operations that fuel tax innovation

Facing heightened expectations from their CFOs to do more with less—and to become more agile to fit new realities resulting from the COVID-19 global pandemic, including the likelihood of continued remote work for many professionals—tax leaders in multinational businesses are refocusing their operating models as they modernize their organizations to meet the future.

Tax leaders who took our Global tax management survey are looking to gain control through greater visibility, transparency, and governance globally. To do this, the majority of survey respondents revealed they are evolving their tax operating models with the organization’s approach to technology, talent, data, processes, and tax internal controls and governance in mind.

Tax leaders are changing how they deliver services in different ways, with many looking for support from a broader ecosystem. Some are keeping operations in-house, building capabilities in flexible and scalable technology solutions while leveraging global business or shared services centers. Others are outsourcing some of their core tax obligations, freeing their teams to focus on strategy and planning. Still others are starting to deploy an “operate” model, in which all or a portion of the tax function is operated by a third-party service provider.

There is no “one-size-fits-all” solution to resourcing tax compliance and reporting. Get a glimpse into the resourcing options available and the factors that might lead to different solutions as organizations consider the right blend of resources for their tax function.

Download the POV (PDF) to learn more.

Want more global tax management insights?

With variable regulatory requirements, rapid changes in technology, data overload, and a looming shortage of talent, how is the tax function pursuing progress and managing pitfalls?
Explore the full Global tax management survey results.