In 1817, The Works of Benjamin Franklin were published. They memorably state: “In this world, nothing can be said to be certain, except death and taxes.” Two hundred years later, taxes are better described as inconstant and volatile than certain, and in-house tax departments are facing unprecedented challenges.
Intense public scrutiny of multinationals’ tax affairs has been followed by a mounting compliance burden. Tax returns now demand far more extensive information about cross-border transactions than do financial statements. Meanwhile, the tax law is becoming ever more complex, with reams of new anti-avoidance legislation coming online. What’s more, many in-house tax departments have seen their budgets frozen or cut. A frequent appeal is to deliver more with less.
To assist, KPMG has developed a framework that supports our clients as they begin to examine their own tax functions and identify ways to answer to the challenges the changing tax function is presenting. KPMG’s framework supports clients in knowing where they are along their journey.
In a series of articles, we will be exploring the above areas by providing our insights into the challenges and opportunities facing the tax function. We will also share examples of how companies are using our framework to transform their tax operations.
Our articles will explore a number of topics that organisations are facing as they consider their tax transformation journey.
External pressures and internal expectations mean tax functions are rethinking their approach to delivering tax services. Focusing on processes, people, technology and governance can help to create greater success.
As tax functions strive for efficiency and to add more value to the business, engaging the right tax technology is essential. However, the key to success is understanding what’s on offer and creating a tailored approach for each unique business.
With cost pressures, technology advances, changing regulations, and the need to better leverage tax data through analytics, a co-sourced or outsourced service approach could offer solutions.
KPMG continues to evolve its capabilities and introduce new technologies to remain in step with trends and maximise the value we provide our clients through our tax offerings.
If you would like to learn more about how KPMG can help you, please contact KPMG’s Tax Technology Solution Architect, Carolyn Harvey.