Global tax compliance and reporting - insights and trends : service centers

Insights

Global tax compliance and reporting - insights and trends : service centers

Welcome to Deloitte’s recent market research survey into the tax compliance and reporting landscape, a comprehensive, independently conducted research study that surveyed a representative sample of the largest multinational businesses across the globe, encompassing structured interviews with over 250 global tax decision makers. This was conducted in 2010 and again at the end of 2012.

This page covers service centers and looks at our research studies past and present – as well as key insights gleaned from our direct marketplace experience – highlighting the most important findings, reflecting on developments and extrapolating our thinking on future direction.

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Executive summary – service centers

In the past, we have seen skepticism about the benefits offered by providers’ central service centers, fearing a loss of local knowledge and expertise. Today this has changed, with 44% of companies stating that a providers’ central service center would make a model more attractive.

New ways of working

There was evidence in 2010  that, as part of the in‑house management of global tax compliance and reporting, businesses were beginning to make use of their own shared service centers. 28% of respondents stated that some compliance and reporting work was carried out in their own centers.

However, when asked whether they felt providers using service centers or using local teams worked better, 75% of tax directors expressed a preference for local teams. These concerns largely stemmed from a perception that ‘on the ground’ tax expertise was essential to the process.

An appetite for change

In the past, we have seen skepticism about the benefits offered by providers’ central service centers, fearing a loss of local knowledge and expertise. Today this has changed, with 44% of companies stating that a providers’ central service center would make a model more attractive.

They cited benefits consistent with a desire to simplify compliance, such as a single point of contact, speed and efficiency. Moreover, increased expertise and knowledge were also cited as benefits of using external service centers. Only 26% stated that a central service center would make a solution less attractive, with some concerns over loss of local knowledge remaining.

Global tax compliance and reporting market research 2012

Attractiveness of central service centers as part of an outsourced offering

Q. If a central service center was offered by a provider as part of a global compliance and reporting proposal, would this make the bid more or less attractive to you? What are your reasons for this?

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Click below to access specific sections of the 2012 research report:

Resourcing

Commercial objectives

Technology

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