Key report findings
81% of businesses report spending more time responding to tax authority queries than in 2023.
Complexity of global tax frameworks and increases in digital mandates are driving heavier workloads and increasing risk exposure.
Most respondents expect to see improvements in the accuracy of AI over the next three years.
However, there are lower expectations when it comes to AI’s impact on strategy or the quality of tax compliance work.
40% of respondents expect to see a shift towards more outsourcing over the next few years.
This reflects both the acceptance of outsourcing’s benefits and caution around overcommitting to a partner or strategy that might not be fit for purpose further down the line.
66% of businesses expect their compliance costs to rise in the coming year.
This is particularly true for smaller businesses with limited resources. To manage complexity, companies should harness technology, invest in integrated data strategies, and foster stronger collaboration with tax authorities.
The bottom line
Tax leaders must act quickly to adopt innovation, leverage technology, and align tax priorities with broader business goals to stay competitive in an increasingly complex environment.
Previous reports
This piece was originally developed by BDO Global. All rights reserved.