Smaller companies gaining more ground
Notably, respondents from smaller companies (with annual revenue less than USD500 million) report slightly better progress on areas related to tax governance and operations. In comparison to larger companies, respondents from smaller companies are more likely to have:
• a board-approved tax strategy;
• board guidance on the strategy; and
• key performance indicators (KPI) to benchmark against each of the named categories.
This suggests that boards and tax teams of smaller companies can communicate more effectively and act more quickly. Their larger counterparts can have a harder time gaining consensus and resources needed. Given the matters at stake, it is just as or even more important for tax departments of large companies to ensure clarity of accountabilities.