For many companies, the primary concern right now is how to limit the financial damage caused by COVID-19. Because of this, many companies are cutting back the financial resources for optimizing internal processes. But it is exactly dramatic situations like the current one that are putting companies’ current business models to the test. This is also true for the tax function.
Now is the time for tax managers to consider the robustness of their current processes and review tax control frameworks to make sure tax risks are properly mitigated. It is also a time when the tax managers of both SMEs and multinationals would like to be confident of the fundamentals in order to be able to focus on adapting to new circumstances and unexpected topics crucial for the company’s survival. This is where having automated and digital processes and a clear structure of responsibility is very helpful.
Different technological tools and skills are required to manage the tax function in order to use resources optimally. Organizations may need to develop or rethink a strategy for their tax function and to design a target operating model that is robust enough to deliver and execute their tax strategy efficiently through the corona crisis and beyond.
In particular, a well-designed tax operating model helps a company manage its internal processes, creating transparency on taxes, thereby enabling proactive detection and management of risks and opportunities.