Corporate tax departments are now measured primarily on how well they manage risk, according to PwC’s ‘tax function of the future’ survey of over 100 tax departments. This suggests that companies are recognising the potential reputational and wider risks that tax can pose to a business.
Corporate tax departments are now measured primarily on how well they manage risk, according to PwC’s ‘tax function of the future’ survey of over 100 tax departments. This suggests that companies are recognising the potential reputational and wider risks that tax can pose to a business. However, the survey shows that only 58% of companies have their tax strategies signed off at board or senior level.
Mark Schofield, tax partner at PwC, said: ‘The costs of poor risk management can easily outweigh incremental changes in the effective tax rate. Public and political scrutiny on tax behaviour, resulting reforms to tax rules, and changing attitudes of tax authorities and governments are among the issues contributing to a higher risk environment.’
Schofield added: ‘Tax today is attracting a different type of person than, say, 20 years ago. You can’t get away with just having an analytical mind. Making sure your stakeholders understand what the business is doing on tax, and why, demands sound communication skills, especially given the complex nature of both the tax system and business models today.’
Corporate tax departments are now measured primarily on how well they manage risk, according to PwC’s ‘tax function of the future’ survey of over 100 tax departments. This suggests that companies are recognising the potential reputational and wider risks that tax can pose to a business.
Corporate tax departments are now measured primarily on how well they manage risk, according to PwC’s ‘tax function of the future’ survey of over 100 tax departments. This suggests that companies are recognising the potential reputational and wider risks that tax can pose to a business. However, the survey shows that only 58% of companies have their tax strategies signed off at board or senior level.
Mark Schofield, tax partner at PwC, said: ‘The costs of poor risk management can easily outweigh incremental changes in the effective tax rate. Public and political scrutiny on tax behaviour, resulting reforms to tax rules, and changing attitudes of tax authorities and governments are among the issues contributing to a higher risk environment.’
Schofield added: ‘Tax today is attracting a different type of person than, say, 20 years ago. You can’t get away with just having an analytical mind. Making sure your stakeholders understand what the business is doing on tax, and why, demands sound communication skills, especially given the complex nature of both the tax system and business models today.’
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