A KPMG International study of trends in tax management, The Governance of Tax, argues that over-cautious boards may risk losing value to competitors who look a tax as a source of competitive advantage.
According to KPMG International, leading tax-oriented organizations should mention clearly in a defendable position on how tax and risk are managed; should maintain well-documented, board approved tax strategies; should construct an enterprise resource planning system for providing useful tax information and maintain transparency (read tax information) with internal as well as external stakeholders.
It makes me wonder if there's a potential evolution in the role of tax departments, which are already trying to show they add value to a business's bottom line in a variety of ways. It's one thing to maintain the effective tax rate, it's another to be part of a competitive advantage.
KPMG Global Study Shows Tax Management Can Boost Corporate Value [Big 4]
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