2 minute read 10 May 2019
Women tying shoes

How ready is your tax operating model?

By

Frederic (Rick) Gelfond

EY Americas Insurance Tax and Finance Operate Leader

Tax technical and operating model transformation leader for largest insurance industry clients. Creative thinker. Team-first player. Husband. Very proud dad. Loves to hit the beach with family.

2 minute read 10 May 2019

A number of macro trends are challenging current tax operating strategies. In response, enterprises must strengthen their tax function.

Optimizing tax operations in financial services organizations

Now is the time for organizations to ask themselves: does our tax operating model still fit?

You can download the full brochure here.

Data and technology

  • Do our accounting, finance and tax departments share data in the most efficient, effective way possible?
  • Are we leveraging leading-edge technology and data management innovations to facilitate collaboration, mitigate risk, and develop actionable analytics?

Established framework

Do we have a tax function that is cohesive and effectively executes domestically and worldwide?

Talent

Are we positioned to attract and retain the right talent and skills?

People and organization

Do we have our resources adding optimal value in the right locations at the lowest cost?

Process and policy

Are we reducing redundancies and continuously driving to innovate and improve?

Global service delivery

Have we built a global infrastructure that delivers best-in-class and best-in-cost tax services to the organization?

Digital transformation

In an increasingly digital working world, it’s critical that tax departments consider the opportunities that new technologies — particularly automation — provide to unlock value, manage risk, improve efficiency and provide value-added insights. Innovative tactics and tools to consider include:

  • Digitization of operations
  • Intelligent automation, including robotics
  • Artificial intelligence
  • Service centers
  • Centers of excellence

If your organization has invested in any or all of these, ask yourself if you are truly maximizing your investments. If not, it is time to map out your optimal path to digital transformation. In either case, it is critical to determine what to keep in-house and what to outsource to a provider with a robust technology platform.

How financial services firms can evaluate their tax operating model

Setting the strategic direction for your tax operations involves a four-step process.

How financial services firms can evaluate tax operating model

Summary

Is your tax operating model positioned to meet both today’s realities and tomorrow’s challenges? Now is the time for organizations to ask themselves this question and ascertain which tax capabilities should be retained internally, which might benefit from a hybrid solution and which can be outsourced.

About this article

By

Frederic (Rick) Gelfond

EY Americas Insurance Tax and Finance Operate Leader

Tax technical and operating model transformation leader for largest insurance industry clients. Creative thinker. Team-first player. Husband. Very proud dad. Loves to hit the beach with family.