Based on KPMG International’s survey of tax executives, tax departments of multinational companies in the Energy & Natural Resources (ENR) sector are:
- gaining interest and guidance from boards and corporate leadership in the development of tax department strategies that align with the company’s overall business strategy, in part due to rising regulation of the sector globally
- centralizing the management and structure of resources in global or business-wide headquarters tax departments to improve accountability, control and standardize approaches
- well advanced in their efforts to standardize tax department roles and processes and putting priority on investments in improving their tax and finance function processes and controls in order to meet more extensive tax, financial and non-financial reporting demands
- less likely than their peers in other industries to use outsourcing, co-sourcing and shared service centers to carry out or support tax department activities, partly due to highly specific and complex ENR tax regimes
- putting more emphasis on compliance-related activities than on improving connectivity with other parts of the business and other, more strategic pursuits
- in need of further investments in improving processes and technology to keep pace with rising tax compliance audit demands while freeing tax department time to engage in more strategic pursuits that influence the bottom line.