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      The tax landscape is evolving. How can tax leaders rise to meet the challenges of uncertainty, complexity, and innovation?

      The global tax environment is more dynamic than ever. Jurisdictions are introducing new measures to safeguard revenues and accelerate climate-focused investment, while generative AI and a shortage of skilled tax professionals are reshaping how tax functions operate.

      Our latest publication, Navigating the Forces of Change in Tax, unpacks these shifts and offers strategic guidance to help leaders respond with agility and foresight. It focuses on three critical areas where tax leaders can create value and outlines practical steps gain a competitive advantage.

      Tax functions are operating under intense pressure as regulatory frameworks evolve and global events introduce new layers of complexity. According to the KPMG 2024 CEO Outlook, 79% of respondents anticipate trade regulations will negatively impact their organisations, while over half are concerned about the growing burden of regulatory compliance.

      Generative AI is poised to reshape tax practices by automating compliance, improving data analysis, and enabling more informed, strategic decision-making. According to the KPMG 2024 CTO Outlook, 29% of tax functions have already adopted Gen AI, with another 26% actively exploring its potential, signalling a clear shift toward intelligent automation and innovation in tax.

      As demand for expertise in emerging technologies grows, tax leaders must prioritise developing agile, skilled teams capable of navigating today’s complex tax landscape. The KPMG Global Tax Function Benchmarking Survey highlights that 44% of respondents view talent acquisition and retention as the most significant disruptor to corporate tax functions.

      While these challenges persist, business leaders have a significant opportunity to reimagine their operating models and enhance their strategic role within the business. By aligning transformation with other business functions, tax leaders can unlock greater value, enhance agility, and strengthen their influence in navigating future uncertainty. To build a future-ready tax function, leaders should consider the following strategic actions:

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      Reappraising the operating model

      Redesigning the target operating model with a focus on governance, process optimisation, people capabilities, service delivery models, technology enhancements, and performance insights.

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      Developing a business case and managing stakeholders effectively

      Creating objectives and key results (OKRs) to measure and communicate the success of transformation efforts.

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      Refining tax governance

      Implementing responsible tax policies that align with ESG (environmental, social, and governance) principles to enhance company reputation and help reduce audit risks.

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      Building a robust risk governance framework

      Identifying geopolitical risks and preparing for various future scenarios.

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      Positioning performance in terms of value delivered

      Highlighting the tax function’s dual roles as a compliance function and strategic business partner through key performance indicators (KPIs).

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      Experimenting and iterating

      Taking an agile approach to tax transformation by experimenting with discrete operational areas and building on successes.

      Download

      Navigating the forces of change in tax

      Equip your tax function to thrive in an unpredictable future. Discover in-depth insights and strategic recommendations.

      Download

      Our tax insights

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      Our people

      David Linke
      David Linke

      Global Head of Tax & Legal

      KPMG International

      Carol Newham
      Carol Newham

      Partner, Business Taxes Lead

      KPMG in the UK

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      Read enough? Get in touch with our team and find out why organisations across the UK trust us to make the difference.

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