- About half of corporate tax departments globally say they are under-resourced for technology, resources, and hiring. You know, they’re just not equipped, man. They need more help, like more technology and more people.
- If these tax departments are under-resourced, they’re more likely to face audits and penalties. They’re just asking for trouble, bro.
- Check this out, two-thirds of companies with over $100 million in revenue are implementing technology to manage their global trade operations. They’re trying to level up, man.
TORONTO, September 14, 2023 – We got some new research from Thomson Reuters, this global content and technology company. They found that tax and trade departments are feeling under-resourced, which is putting their businesses at risk. The 2023 State of Corporate Tax Department report shows that tax departments that lack resources are more likely to get audited and slapped with penalties. And don’t even get me started on the challenges faced by trade professionals. They’re feeling understaffed and dealing with all these data-intensive demands, man. It’s a tough gig, especially with all these new requirements coming in.
“So, here’s the deal,” says Ray Grove, Head of Product, Transactional Compliance at Thomson Reuters. “These tax and trade professionals, they’re under-resourced, and they know it. They’re optimistic about automation and AI helping them out, but they’re facing some barriers, you know. They don’t have enough tech budget or headcount to do what they need to do. And that’s not good, dude. It’s holding them back and increasing the risk and cost of penalties.”
Let’s talk about the risks, man.
So, get this. Half of corporate tax departments admit they’re under-resourced. And these guys are more likely to get audited. In fact, 72% of them faced a tax audit in the previous year. That’s no joke. And they’re not just getting audited, they’re also getting hit with penalties. With an average value of $40,000, these penalties are double the median penalty incurred by all tax departments. That’s some serious cash, bro. And you know what could help reduce these risks? Technology, man. It’s ranked as the most effective way to cut down on the risk, ahead of quality control and hiring more people.
Now, let’s not forget about our trade professionals. One-third of them feel the pinch from being understaffed and lacking budget. It’s tough out there, man. And on top of that, they’re dealing with increased disruption from all sides, like inflation, supply chain issues, international conflicts, and changing regulations. It’s a wild world for these guys.
But hey, there’s hope.
Tax departments want to improve efficiency, man. They want to automate processes and get better software. In fact, 23% of them said their team was most proud of the automation they achieved through new technology. That’s something to celebrate, bro.
And looking ahead, introducing automation is the top priority for tax departments in the next one to two years. They want to increase efficiency and grow their headcount too, but automation is king.
Now, let’s talk trade technology. Big companies, those with over $100 million in revenue, are stepping up their game. They’re investing in cloud-based technology to gain control over their supply chain. It’s all about supply chain security, data protection, compliance, and information sharing. They’re getting serious about this, man.
The future is uncertain, but change is coming.
More than two-thirds of corporate tax professionals expect their companies to go through significant changes in the next two years. They’re looking at shifting product offerings, restructuring, mergers, and expanding into new territories. Things are going to shake up, man.
For global trade, compliance is the name of the game. New regulations are coming in all over the world, and trade professionals need to keep up. Retaliatory tariffs are a major concern, along with the UK’s new Custom Declarations Service and China’s Export Control Law. It’s a challenging world out there, bro.
About Thomson Reuters
Thomson Reuters is a game-changer, man. They bring together content and technology to help people and organizations make the right decisions. They serve professionals from various industries, providing them with specialized software and insights. They’re all about empowering professionals and promoting justice, truth, and transparency, man. And let’s not forget Reuters, their trusted journalism and news. They’re the real deal.
If you need more info, hit up Kirsty Bennett.
Kirsty Bennett is the Director of Customer and Product PR at Thomson Reuters. You can reach her at +44 7786 005 128 or kirsty.bennett@thomsonreuters.com. She’s got all the deets, man.
Notes to editors:
The 2023 State of Corporate Tax Department
Methodology: They surveyed 365 senior tax professionals across different sectors, like Services, Energy & Natural Resources, Finance & Insurance, Pharma, Bio & Health Technology, Media, Telecoms, and other industries. It’s a big study, bro.
The 2023 Corporate Global Trade Survey Report
Methodology: They surveyed 177 global trade professionals from North America, EU, UK, and Latin America. These guys are the big shots, upper-level executives, directors, and managers, dealing with operations, logistics, procurement, supply-chain management, and compliance. And just to set the record straight, most of them come from companies with over $100 million in annual sales revenue. These guys are playing in the big leagues, man.
Future of Professionals Report
Methodology: They surveyed over 1,200 professionals from legal, tax and accounting, and risk professions from different countries. These guys work for corporations, firms, and government agencies, doing all kinds of traditional roles. It’s a broad study, bro.
