5 traits of highly effective corporate tax departments

Findings from leading global companies indicate the top five areas that corporate tax experts should concentrate on to enhance their effectiveness.

  • Traits of Highly Effective Corporate Tax Departments

    Survey results from prominent global companies worldwide have revealed the 5 areas corporate tax professionals need to focus on to become highly effective.


    Last year, 72% of businesses with under-resourced tax departments faced tax audits and 47% paid more than $50,000 in penalties. Under-resourced departments also fear the consequences of an overwhelming workload, not only for their department but for the organizations they serve.


    Effective tax departments take a proactive approach to technology and are always seeking ways to incorporate new tools and solutions. Their systems, departments, and data are all integrated, allowing them to find efficiencies that less effective tax departments cannot achieve. Still, almost half (47%) of all companies say they don't have the resources to invest in the technology they want and need.


    Automation of routine tax processes (e.g., tax provision, tax compliance, e-invoicing) streamlines workflows, processes filings, and payments faster, improves compliance, and makes more valuable use of employees' time. When done properly, these efficiencies can transform a lagging department—but only one in ten companies has done so.


    The most effective tax departments have budget allocations that allow them to hire enough people with the right skills to meet the organization's tax and compliance needs. That's one reason why almost half (49%) of under-resourced tax departments cite the recruitment of qualified talent as a top priority in the next year or two.


    Effective tax departments are confident they have the resources and talent they need to meet challenges, which leads to higher professionalism and job satisfaction. More than four out of five tax departments are confident they can meet their company's tax needs, but under-resourced departments are almost ten-percent less likely to express confidence in their abilities.

    To find out more about how top corporate tax departments distinguish themselves, download the 2023 State of the Corporate Tax Department report.

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