The global tax landscape and the banking and capital markets industry are both in a state of rapid and constant change primarily as a result of a more global and technologically-advanced world. These changes directly impact the function and expectation of a tax department. Is your business equipped to handle the challenges of 2020? If not, does your tax department know what it needs to do in order to optimise its function in 2020?
Our report identifies the following three steps to help tax departments take action now and be prepared for the year 2020 and beyond:
Our report identifies six priorities banking and capital market organisations should consider:
We know the business and operating model for banking and capital markets companies has changed and will continue to change – both as a need in response to the unintended and unforeseen aftermath of the financial crisis and also out of desire to embrace the innovation enabled by technology. In all aspects the tax department has to reflect and embrace the evolution of the business, while also incorporating tax specific developments. As similar drivers lead to change to both the business and the tax landscape more directly, the tax function may feel the impact of change with double the force.
The needs and role of the tax function today are vastly different than what they will be in 2020. We expect the tax function to shift from a primarily-labor intensive reporting and compliance function to a key enabler of a company’s strategy. Each company will have its own process, transformation roadmap, and future state but we believe common themes will exist.