By 2020, how an asset management firm deals with tax risk will be viewed as a competitive advantage or disadvantage. Investors will expect robust and efficient tax infrastructure and will have minimal tolerance of tax uncertainty or tax adjustments. As a result, tax will be a key operational and business activity, requiring specialist resources, a new approach and integration into front, back and middle office activities. So what will be the drivers for this new global tax world? And how will investment firms transform to meet these challenges as the industry becomes an even more significant part of the financial services sector?
To help asset managers plan for the future, our report sets out issues addressed by the CEO of a fictional firm that give an indication of the challenges the industry faces in putting the management of tax risk at the heart of all strategic business change. In the last section of the report we set out a vision of what the tax landscape should look like in 2020 to adequately address the new tax environment.