Whilst the tax world has evolved fast in the past decade or so, operating model of tax functions, especially in large companies, has not kept pace in many cases. This issue is a rather consistent one, with about 90% survey respondents submitting that they are exploring changes in their current operating model.
Resultantly, in last 12-18 months, we have seen several large corporates wanting to re-look at the operating model for tax function. They are looking at creating Tax SSCs and CoEs, either standalone or together with finance function. Special attention is being given to tax finance transformation and ERP implementation projects.
These operating model changes are fundamentally changing how tax function is working and delivering value to business. Tax directors, who can manage to create a business case of inclusion of tax in these change events, may reap medium to long term benefits.