2023 Chief Tax Officer Outlook survey finds 83% plan to use outsourcing, co-sourcing or managed services models in the next three years
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NEW YORK, January 26, 2023听鈥撎鼳ccording to the tax, audit and advisory firm鈥檚 fourth annual 乐鱼（Leyu）体育官网 LLP 鈥�Chief Tax Officer Outlook,鈥� 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.
鈥淭he change that Chief Tax Officers must grapple with is rapid, relentless, and coming from all directions,鈥� said听听(@Greg_Engel_乐鱼（Leyu）体育官网), Vice Chair 鈥� Tax at 乐鱼（Leyu）体育官网 LLP. 鈥淚t makes perfect sense for CTOs to ramp up their interest in outsourcing models given the current economic, regulatory and talent environment. In fact, it鈥檚 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.鈥�
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. 乐鱼（Leyu）体育官网 is well positioned to help companies harness these effective models. Recently, the firm听听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 乐鱼（Leyu）体育官网's听US$5 billion听investment听in technology, people and innovation to accelerate digital transformation, and more than听US$1 billion听in tax and legal technology, 乐鱼（Leyu）体育官网 is continuously enhancing its global cloud-based platform Digital Gateway, which helps provide these quality service models and differentiated tax technologies to its vast network of clients.
鈥淒eploying the right technology in a corporate tax department is make-or-break in an ultra-competitive market,鈥� said听听(@RemaSerafi), National Managing Partner 鈥� Tax at 乐鱼（Leyu）体育官网 LLP. 鈥淭his 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.鈥�
Other salient findings from the report:
- The top three threats to tax organizations鈥� 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. 听
- Seventy four percent say the OECD鈥檚 BEPS initiatives are significantly affecting operating and tax planning.
- Approximately half (49 percent) say they are 鈥渇ully tax transparent鈥� 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.听
Survey Methodology
The 乐鱼（Leyu）体育官网 report is conducted together with Forbes and features insights from 300 Chief Tax Officers leading their organizations鈥� tax function at large public and private U.S. companies with revenue of $2 billion or more.
About 乐鱼（Leyu）体育官网 LLP
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乐鱼（Leyu）体育官网 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听www.kpmg.com/us.
