Of the 19 percent of respondents who expect changes to their tax
department’s structure in the near future, 50 percent of them say
that better alignment with the business and/or the finance function
is among the primary reasons. However, better integration is
still a lower priority in driving upcoming structural projects than
improving controls, reducing costs, and improving/creating
efficiencies.
Blueprint for change
The survey shows that tax directors are getting better at
articulating and gaining formal approval for the tax strategy. But
the current regulatory and economic environment highlights the
importance of continually adapting the strategy to respond to
changing circumstances. We recommend that a common purpose
is agreed upon and maintained between the tax department and
corporate leadership to align strategic goals and objectives.
As case study #1 shows, developing a broader set of performance
measures can help quantify and communicate the full value the
tax department brings to the company. We recommend defining
one view of performance, shared by the tax department and
corporate leadership. This includes clarifying what requirements
are needed and how to measure performance.
As the tax department obtains greater clarity over these areas,
the right mix of skills and team structure are essential to the
execution.