KPMG POISED TO CAPITALIZE ON INCREASED DEMAND FOR OUTSOURCING CORPORATE TAX DEPARTMENTS

2023 Chief Tax Officer Outlook survey finds 83% plan to use outsourcing, co-sourcing or managed services models in the next three years

NEW YORK, Jan. 26, 2023 /PRNewswire/ -- According to the tax, audit and advisory firm's fourth annual KPMG LLP "Chief Tax Officer Outlook," Chief Tax Officers are increasingly turning to outsourcing, co-sourcing and managed services models to help them survive and thrive. Additionally, nearly half (49 percent) have begun to leverage third-party tax technology providers, and over half (52 percent) have plans to address current and future talent retention issues by adopting these models.

"The change that Chief Tax Officers must grapple with is rapid, relentless, and coming from all directions," said Greg Engel (@Greg_Engel_KPMG), Vice Chair – Tax at KPMG LLP. "It makes perfect sense for CTOs to ramp up their interest in outsourcing models given the current economic, regulatory and talent environment. In fact, it's best practice for companies to periodically reassess their need for these models to address changing dynamics in the market and equip themselves with the right resources to compete and succeed."

Outsourcing provides in-house organizations with the advantage of added resources, a reduction in costs over time, increased efficiencies, and the ability to free up talent from executing tedious compliance tasks often involved in running a corporate tax department. KPMG is well positioned to help companies harness these effective models. Recently, the firm announced the expansion of its Tax Reimagined service offering, which leverages its outsized investment in technology to help companies enhance their tax department operating models, with the addition of numerous senior talent.

As part of KPMG's US$5 billion investment in technology, people and innovation to accelerate digital transformation, and more than US$1 billion in tax and legal technology, KPMG is continuously enhancing its global cloud-based platform Digital Gateway, which helps provide these quality service models and differentiated technologies to its vast network of clients.

"Deploying the right technology in a corporate tax department is make-or-break in an ultra-competitive market," said Rema Serafi (@RemaSerafi), National Managing Partner – Tax at KPMG LLP. "This is why working with a service provider that has state-of-the-art tax technology can bring tremendous value to an organization, equipping them with resources they likely would not invest in themselves and allowing them to focus on adding more strategic value to the overall business."

Other salient findings from the report:

• The top three threats to tax organizations' growth over the next three years are ESG, regulatory and geopolitical risk, with ESG ranking first (38 percent).
• Sixty five percent say worldwide tax enforcement activity, audit and controversy are likely to increase significantly in the near future.
• Seventy four percent say the OECD's BEPS initiatives are significantly affecting operating and tax planning.
• Approximately half (49 percent) say they are "fully tax transparent" today, sharing beyond what is required for compliance.
• Less than half (47 percent) say their tax department is currently engaged with the business in exploring ESG related risks and opportunities.

Survey methodology: The KPMG report is conducted together with Forbes and features insights from 300 Chief Tax Officers leading their organizations' tax function at large public and private U.S. companies with revenue of $2 billion or more.   

About KPMG LLP 

KPMG LLP is the U.S. firm of the KPMG global organization of independent professional services firms providing audit, tax and advisory services. The KPMG global organization operates in 143 countries and territories and has more than 265,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. 

KPMG is widely recognized for being a great place to work and build a career. Our people share a sense of purpose in the work we do, and a strong commitment to community service, inclusion and diversity and eradicating childhood illiteracy. Learn more at www.kpmg.com/us. 

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SOURCE KPMG LLP