Ryan Poll: Tax and Finance Leaders Anticipate Growing Tax Changes and Challenges Amid Internal Disconnect on Strategic Role of Tax

LONDON–(BUSINESS WIRE)–Ryan, a leading global provider of tax software and services, today announced the results of its recent European market survey. Faced with the breakneck and relentless speed of change in the ever-changing European landscape, organizations have the option of either passively trying to keep pace, hampered by time, process and resource restrictions or, conversely, being intentional in their efforts to leapfrog the challenges by embracing change toward creating a tax center of excellence. Those who invest in the latter are infinitely more likely to transform their tax functions into best-practice operations aligned with key business priorities.

Main conclusions

Trends from previous surveys have not only been confirmed once again, but have also been amplified in some cases, according to the latest results. The challenge of alignment between finance and tax frameworks remains an unresolved chasm, threatening to undermine business growth and organizational effectiveness. Additionally, the issue of communication between tax and finance teams reveals an even more surprising gap in perception, with 26% of senior finance executives believing that tax executives are ineffective in communicating with the finance function, while only 1 % of tax executives share this view.

A new idea that has emerged is that digitization is a double-edged sword. While it holds the theoretical promise of automation, the cost, scale, and scope of the in-house tax technology transformation enterprise seem daunting. Due to its cross-functional nature that crosses tax, financial, operational and IT boundaries, the aforementioned lack of alignment contributes to organizations’ inability to effectively undertake large and impactful technology investments, 68% of tax managers and 37% of finance executives who believe outdated error-causing technology will impact the efficiency of their tax functions over the next three years.

While there is agreement on the impact of changes in tax rates and new tax laws on their organisations, the consideration that taxation itself should be part of a company’s strategic planning process remains a broad one. domain of dissonance. Nearly 80% of tax executives believe that transactional tax data is of key strategic importance to an organization; however, only 14% of finance executives agree.

Developing a case for change

“The survey confirms the feedback we hear daily from our customers,” said Ryan President of European and Asia-Pacific Operations Jon C. Sweet. “Tax leaders have a vision of their department’s potential as a profit center and spearheading their organization’s efforts to become data-first at all operational levels. The results of this new survey also remind us to constantly seek creative ways for our clients and present them with a way forward to deal with the changing European tax landscape, with the digital tax transformation playing an important role.

“The perception gap between senior finance and tax executives will only continue to grow if not addressed head-on,” said Scott Fowler, director of client services at Ryan. “By investing in transformation initiatives, organizations can harness the full power of their financial and transactional data and transform the tax function from a reactive cost center into a strategic, results-driven business partner.”

A white paper on the investigation, titled “Building the Case for Change: How to Amplify the Strategic Value of Your Tax Functionanalyzes the results, revealing a roadmap for aligning the efforts of tax and finance leaders to create strategic tax functions to become a profit-driven part of the business. Read the full white paper here.

Other key findings from the study include:

  • Three-quarters of tax professionals are concerned about the impact of changing tax rates or the introduction of new taxes on their organization’s ability to effectively manage tax changes

  • Changing corporate structures were also a top concern for nearly half of tax practitioners (49%), compared to 36% of finance executives.

  • Nearly a quarter (24%) of finance executives said their tax function was not effective at managing costs, compared to just 1.4% of tax executives

  • Among respondents who fully outsource indirect tax, 40% said their ability to optimize tax collection was “very effective,” compared to only 14% among respondents from organizations where indirect tax is not outsourced.

About Ryan

Ryan, an award-winning global tax software and services provider, is the world’s largest firm dedicated exclusively to corporate taxes. The firm provides an integrated suite of international tax services on a multijurisdictional basis, including cost management, compliance, advisory and technology services. Ryan is a 10-time recipient of the Customer Service Institute of America’s (CSIA) International Service Excellence Award for his commitment to world-class customer service. Strong in dynamics myRyan work environment, widely recognized as the most innovative in the tax services industry, Ryan’s multidisciplinary team of more than 3,600 professionals and associates serves more than 18,000 clients in more than 60 countries, including many of the most important Global 5000 companies. For more information about Ryan, visit ryan.com/europe. “Ryan” and “Company” refer to the global organizational network and may refer to one or more of Ryan International’s member companies, each of which is a separate legal entity.

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