2023 State of the Corporate Tax DepartmentGain insights from our survey of global corporate tax professionals on how to automate work processes, increase efficiency, and reduce the risk of audits

Survey results from prominent companies around the world have revealed that corporate tax professionals are having difficulty in several primary areas:

1. Adapting to operational and regulatory changes. Many businesses anticipate significant changes in the next two years, with over two-thirds expecting to offer new products or services, restructure, or engage in M&A activity. Most of the companies polled anticipate expanding into new jurisdictions. Additionally, many individuals anticipate significant changes to regulatory requirements, such as digitised indirect tax filing and real-time remittance requirements — all of which will stress current processes and technology.

2. Consistent lack of resources. Nearly half of the businesses polled still feel under resourced in their tax functions or departments. They are attempting to rectify this by implementing resourcing and recruiting strategies to increase automation and efficiencies, recruit more tax professionals, and utilise third-party resources.

3. Managing tax risk. Over 60% of businesses experienced tax audits in the past year, with one-third having six or more. Additionally, 40% incurred penalties, and one-third of those had values of over $50,000. Under-resourced businesses were more likely to be audited and incur high-value penalties, and only half of all businesses have a perceived likelihood of avoiding penalties.

Key findings from surveyed companies:

• 77% of respondents said their departments have automated half or less of their work processes.
• 70% of respondents said their top four primary goals for corporate tax departments for the coming year are related to operational improvements, such as improving efficiency and processes.
• 61% of surveyed businesses incurred tax audits in the past year, while 72% of businesses with under-resourced tax departments also did so.
• 47% of businesses feel their tax department is under resourced, leading to increased risk of audits and penalties.

How will the 2023 State of the Corporate Tax Department report benefit your organisation?

This report offers several benefits to global tax departments:

• Data offers readers the opportunity to stay educated on the trends, preferences, and difficulties associated with the corporate tax profession.
• Leaders can use survey findings to make informed decisions concerning investment, strategy, and technology.
• Creating benchmarks and comparisons enables readers to gauge how their situation compares to that of other organisations.
• You can gain knowledge from your colleagues: stimulate the generation of new ideas and the adoption of novel approaches by considering the actions of your peers.

Download your free version of the 2023 State of the Corporate Tax Department report for an in-depth analysis of the industry's current state. By delivering a comprehensive overview of the challenges facing corporate tax departments, the report ultimately provides valuable data for those looking to improve their own departments.

Report methodology

The 2023 State of the Corporate Tax Department report results from a survey of global corporate tax professionals conducted between June and July 2023. It included responses from individuals of varying corporate sizes.