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Global Tax Benchmarking Industry views

Global Tax Benchmarking Industry views

KPMG International conducts an ongoing survey of tax leaders around the world, which considers ranges of responsibilities, department composition, budget structures and other data points to help tax leaders assess their departments today, and consider how to evolve them for the future. Below are some of the highlights of the survey by respondents from the energy, power and utilities sector.

Structure

Central tax departments most often fall within the:

ENR chart 1

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

ENR chart 2

Just under half of tax departments in energy, power and utilities are responsible for global reporting while a high proportion are responsible for domestic reporting compared to global averages (i.e. 61% global reporting and 74% domestic reporting).

ENR chart 3

Only 40% of tax departments use a shared service center (SSC), of these 64% have increased utilization.

ENR chart 4

Responsible tax

Most tax departments have a code of conduct to frame their risk tolerance and tax decisions.

ENR chart 5

Public disclosures of tax information:

ENR chart 6

31% 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.

Geopolitical chart 7

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

ENR chart 8

Technology

  

ENR 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:

Geopoliticalchart 10

Business impact

Most tax departments have oversight from a board member (or board-level individual) as tax continues to rise in importance on the board agenda.

Geopoliticalchart 11

Today, tax departments are often consulted on the overall business strategy for the organization. More than half (67%) of the respondents have seen an increase in involvement in the last 2 years.

ENR chart 12

Most companies have a tax strategy or overarching tax governance policy document that covers tax risks, which is reviewed annually.

ENR 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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