5 ways tax professionals can combat today’s biggest challenges

Regulatory requirements and the ongoing talent shortage are placing tax departments under tremendous strain.

Here are the five biggest challenges corporate tax professionals face today and strategies to help tackle them effectively.

Keep regulators at bay

Complying with the many new BEPS Pillar 2.0 global minimum tax disclosure rules around the world means data needs to be gathered more frequently, from more areas of the business, in more granular detail, and more quickly.

Solution: effective data management. Storing data in a centralised platform enables you to review data in real time.

Mitigate tax risk

Many companies are ill-equipped to meet new demands — both due to tightening budgets and decentralised tax data.

Solution: automation and quality control are highly effective measures for reducing this risk.

Create a stronger partnership with finance

Disconnected systems, processes, and technology platforms are obstacles to ensuring accurate financial reporting and minimising tax liabilities.

Solution: tax and finance teams can strengthen their working relationship by collaborating on talent, data and technology, legislative and regulatory updates, and budget constraints.

Address the growing importance of ESG

Firms face pressure to disclose more tax information while governments worldwide incorporate environmental, social, and governance (ESG) considerations into tax regulations.

Solution: proactive integration of ESG principles into tax strategies, linking organisations with broader sustainability goals and complying with emerging ESG-related tax regulations.

Develop a technology roadmap

Many tax professionals say their departments’ technological maturity is low or moderate, limiting their ability to deliver analysis, risk management, and effective business planning.

Solution: a clear roadmap that includes automated data management, robotic process automation, analytic process automation, and artificial intelligence.

If these challenges resonate with you, download the full report: Entering a new era: The future of Corporate Tax Management.