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Global Tax Benchmarking Industry views

Global Tax Benchmarking Industry views

Global tax benchmarking

KPMG International conducts an ongoing survey of tax leaders around the world. The survey considers a range of responsibilities including department composition, budget structure and other data points designed to help tax leaders assess their departments today and evolve for the future. Below are some of the highlights of the survey from respondents in the consumer goods industry.

Structure

Central tax departments most often fall within the:

Consumer chart 1

Most Chief Tax Officers (CTOs) or Tax Leaders report to:

Consumer chart 2

Slightly more tax departments in consumer goods are responsible for global reporting and significantly less for domestic reporting as compared to global averages (i.e. 61% global reporting and 74% domestic reporting):

Consumer chart 3

43% of tax departments in consumer goods use a shared service center (SSC). Of these departments, 83% have increased their utilization, the highest of all sectors.

Consumer chart 4

Responsible tax

Just over half of the tax departments in the consumer goods sector have a code of conduct to frame their risk tolerance and tax decisions.

Consumer chart 5

Public disclosure of tax information:

Consumer chart 6

19% of the companies who don't currently disclose, plan to do so in the future.

Wish list

Additional personnel and tax technology topped the list for tax leaders when asked where they would invest if they had an additional budget.

Consumer chart 7

Tax leaders ranked the following process improvement priorities as important over the next 5 years:

Consumer chart 8

Technology

  

Consumer chart 9

Department performance

Performance is often measured by the impact the tax department has on the business across a range of metrics, with these five most often topping the list of importance:

Consumer chart 10

Business impact

Less than half of the tax departments in the consumer goods sector have oversight from a board member (or board-level individual) as tax continues to rise in importance on the board agenda.

Consumer chart 11

Tax departments are often consulted on the overall business strategy for the organization with 70% of respondents seeing an increase in involvement over the last 2 years.

Consumer chart 12

Less than half of the companies in the consumer goods sector, have a tax strategy or overarching tax governance policy that covers risk.

Consumer chart 13

Assessing today and preparing for the future

As a seasoned tax leader, you make key decisions every day to evolve your tax department in order to keep pace with unprecedented pressures, disruptive technological advancements, heightened compliance obligations and more -- all while continually demonstrating value within your organization and beyond.

Benchmarking against comparable tax departments can be a powerful tool for reflecting upon the department you have today, and thinking about how you will transform it for tomorrow.

The KPMG Global Tax Department Benchmarking Survey is an ongoing initiative that is establishing a meaningful benchmark of data for tax leaders around the world. The future of tax is here.

To respond to the survey, please email tax@kpmg.com.

Source and notes

Global Tax Benchmarking Survey, KPMG International, 2019

*Notes:

  • Percentages might not add up to 100% due to rounding
  • Data as of 7 May 2019

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