Tax departments are making good progress in adopting company-wide tax strategies. Survey results show that boards and corporate leadership are taking more interest in, and responsibility for, tax matters, and getting more involved in guiding tax strategy.
• Respondents report a relatively high degree of focus on setting measurable performance indicators. Compliance-related indicators are by far the most prevalent. In line with this, accurate and timely tax return compliance remains the most important activity for tax departments, topping their strategic priorities and occupying more of their time than other activities. Respondents say that, in aggregate, more than half of their tax departments’ time is spent on compliance, reporting and managing tax audits.
There is a clear trend toward centralizing resources within a global or company-wide tax department that directs or manages the global tax function. The number of respondents who report having employees with tax responsibilities for particular regions or multiple countries rose significantly since 2009. The majority of these employees report directly to the headquarters tax department.