The challenge therefore is how the tax department can manage the increasing compliance burden while addressing the demand for value-added input. In this context, it is interesting that respondents are generally satisfied with current levels of tax department resources and investments: administrative budgets are the same over the past year for 68 percent of respondents and 79 percent say budgets are sufficient. And as noted, 74 percent of respondents say the level of investment in technology and process improvement for their tax department is “about right.”
The satisfaction suggests that they may not fully appreciate what the future challenges could include — in particular, tax investigations and disputes and the developing tax authority approach to taxpayer compliance will test their ability to manage compliance in the coming years.
As they struggle to cope, leading companies know that a transformational approach can show the way. KPMG’s research notes the following steps as crucial elements as a blueprint for change:
By taking a proactive approach and building a strong case for an effective tax framework, companies can gain confidence that their tax affairs are well managed and support the overall business goals.