2023 State of the Corporate Tax Department

Survey results from prominent companies worldwide have revealed that corporate tax professionals are having difficulty in several primary areas. Notably:

1. Adapting to operational and regulatory changes. This will stress current processes and technology. 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 digitized indirect tax filing and real-time remittance requirements.
2. Consistent lack of resources. Nearly half of businesses 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 utilize 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 in 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 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 organization?

The report offers several benefits to global tax departments:

• Stay educated on the trends, preferences, and difficulties associated with the corporate tax profession with this data.
• Leaders: use the survey findings to make informed decisions concerning investment, strategy, and technology.
• Create benchmarks and comparisons to enable readers to gauge how their situation compares to other organizations.
• 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 is the result of a survey of global corporate tax professionals conducted between June and July of 2023. It included responses from individuals of varying corporate sizes.