To operate optimally in the future, tax functions must prioritize cost, value and risk when investing in talent and technology.
After tax functions set clear priorities for the future, says David Helmer, EY Global Tax and Finance Operate Leader, “Then it’s important for them to look at the activities in the function and break them down between best in class, things where you want a lot of control, that are very valuable, maybe tax planning, tax controversy, and then activities where you want to be best in cost and deliver it in the most efficient manner.”
Next, Helmer says, look at what you want to build internally as an organization and what you want to outsource to a third party. “And in most cases, it’s some mix,” he adds.
According to our survey, 53% of respondents said they weren’t confident in their tax function operating model. Additionally, 84% were taking action to target their operating model deficiencies, says Chee Weng Lee, EY Asia-Pacific Tax and Finance Operate Leader.
(Also read our updated 2020 TFO survey.)
One such effort is being undertaken collaboratively by AIG and EY.
“We’re working together to deliver tax services around the globe. It’s a unique partnership,” says Olivia McTavish, EY Insurance Sector Account Leader. “We are working to improve the technology processes within AIG and to improve our own internal processes and deliver value back to AIG to focus them on where they need to be and get to.”
Watch more in our video series on the future of tax