A roadmap for tax executives: Unlocking tax value through key levers

In today’s environment of constant regulatory change, evolving trade policies, and economic uncertainty, standing still is not an option. The rules keep shifting—tariffs rise, regulations evolve, incentives emerge and disappear—and uncertainty becomes the norm. The FY2025 reconciliation “One, Big, Beautiful Bill” (OBBB) approved on May 22 by the House, with its many tax provisions, is the latest signal of just how quickly the landscape can change. Yet within this complexity lies opportunity.

As tax executives, we are uniquely positioned to turn such volatility into a catalyst for resilience, agility and growth. Specifically, three core value levers can help us navigate this new reality: financial, operational, and technical. Each is powerful on its own. Together, tax executives can use these levers to drive smarter risk management, optimize tax positions, and create meaningful business value. 

Volatility demands financial agility, and financial value is perhaps the most direct and tangible area where tax executives can make an immediate impact. The proposed legislation currently advancing through Congress underscores this need, with the bill featuring a number of new or expanded business tax proposals that could directly affect planning and cash flow. Agility in financial planning—paired with a proactive tax strategy—can help organizations absorb regulatory shocks and maintain resilience. Here’s how:

• Dynamic Effective Tax Rate (ETR) oversight: As tax policies shift, previously effective tax strategies can become obsolete overnight. To stay ahead, tax executives should deploy an agile approach to ETR oversight—using scenario planning and real-time data analytics to respond quickly to economic shifts. 

• Tariff and trade optimization: As tariffs fluctuate and trade agreements evolve, tax executives can deliver significant value by minimizing exposure and managing cross-border transactions with precision. This starts with tariff engineering—clarifying product classification to take advantage of lower duty rates—and extends to strategically leveraging treaties and trade agreements to further optimize cost impacts and resulting cash flow. Tax executives should proactively collaborate with cross-functional teams as they explore strategic localization of supply chains and integrate tariff impacts into broader pricing and operational strategies.

• Strategic use of credits, incentives and refunds: Many governments offer credits and incentives to promote targeted investment. Tax credits, incentives, and refunds are essential tools to offset rising costs. Tax executives should look for opportunities to align available R&D credits, clean energy tax breaks and jurisdiction-specific incentives with business goals. Strong compliance processes help confirm that eligible refunds and exemptions are claimed, enhancing post-tax cash flow.

Operational value sets the pace for how efficiently tax functions can adapt to regulatory change—an essential capability in today’s fast-moving global landscape. By streamlining processes, centralizing data and building adaptive compliance frameworks, tax executives can boost speed, quality, and confidence in execution. Here’s how:

• Tax process automation: Automation is a game-changer in managing the complexities of tax compliance, particularly across multiple jurisdictions. Integrating AI and machine learning into tax planning, reporting, and compliance helps reduce manual errors, lowers the risk of penalties and boosts accuracy. Tax executives that invest in automating workflows can help increase speed and scalability, helping their teams manage complex, high-volume tasks more efficiently and accurately.

• Centralized tax data management: Reliable, real-time data is key to fast decision-making. Centralizing tax data across geographies improves visibility and responsiveness, while cloud platforms and system integration strengthen collaboration and support effective tax risk management. Connecting tax systems with finance, procurement and supply chain functions enables a unified, enterprise-wide tax view.

• Compliance and regulatory readiness: When trying to stay ahead of regulatory shifts, technology and automation simply aren’t enough. Tax executives should prioritize building responsive compliance frameworks to help teams act quickly and consistently. Dedicated resources, with support from advisors, can track legislative developments. Internal playbooks then guide the implementation of new requirements with minimal disruption. 

Technical value focuses on aligning tax strategy with evolving regulations and long-term business goals, with an integrated risk lens. In today’s complex and fast-changing environment, tax executives should stay ahead of regulatory shifts, manage risk proactively and embed compliance into the fabric of business operations. Here’s how:

• Navigating regulatory complexity: Anticipating regulatory change is a hallmark of great tax executiveship. Conducting tax policy scenario analyses and maintaining open channels with regulatory bodies, industry groups, and policymakers helps organizations stay ahead. Early awareness enables smarter business decisions and proactive risk management.

• The FY 2025 reconciliation bill: Formally titled the “One, Big, Beautiful Bill,” highlights how quickly major tax proposals can advance. With Senate action possible as early as June, tax executives should assess potential impacts and consider reviewing potential changes to cash tax projections, distributions, cross-border payments and supply chain structures. Early analysis allows businesses to engage with policymakers and plan for implementation. 

• Enhancing dispute readiness: Increased scrutiny from tax authorities makes tax controversy and dispute resolution strategies essential. Proactive tax executives can identify and address potential areas of controversy by using technology to improve documentation and compliance reporting to build clear audit trails, all of which will help reduce the risk of controversy.

• Embedding tax in strategic decisions: Tax executives should be involved early in business planning so that tax considerations are integrated into M&A, supply chain and other key business decisions. Cross-functional integration of tax strategy supports alignment with business goals and enables tax to be built into strategic planning from day one.

In an environment defined by complexity and constant change, tax executives are uniquely positioned to help their organizations move with greater clarity and confidence. By activating the financial, operational and technical levers in a connected and strategic way—and partnering across the organization—the tax function can become a catalyst for resilience, efficiency and growth. 

Here’s a roadmap to guide that journey:

• Build resilient frameworks that anticipate and adapt to regulatory shifts.

• Invest in technology and automation to streamline processes and scale effectively.

• Integrate tax strategy into business planning to inform decisions on M&A, supply chain and expansion. 

• Stay ahead of change by monitoring legislation and engaging in policy developments.

• Evaluate the potential impact of fast-moving legislation to inform cash flow forecasting, incentive use and risk planning.

• Maximize value through incentives, credits and tariff optimization.

When tax is embedded across the enterprise, it doesn’t just react to disruption—it helps lead through it. This is the moment for tax executives to take the lead, turning uncertainty into opportunity and building a more agile, forward-looking enabler for their organizations.