The CTO outlook in the age of tax reform and disruptive technologies
We found that, for the most part, CTO’s have a favorable outlook for their companies’ growth and the growth of the global economy, and they expect the role of the tax function to grow over the next three years. The 2017 tax reform is dealt with at the highest levels, and a majority of companies are going to be making reform-related changes in less than 12 months. CTO’s and the tax function are lagging in terms of using advanced technologies, and they need to focus on technology-drive transformation to keep pace with the rest of the organization.
On the positive side, many of the CTO’s we interviewed for this report agreed that increased spending for technology is in order. While the survey found that a vast majority of companies plan to add to their tax department’s headcount, many companies are still under pressure to keep costs down across the board. Adding talent will help, but many CTO’s believe that they will have to rely on technology such as robotics, data and analytics, and artificial intelligence to keep up pace with ever-changing tax and regulatory requirements. In response to tax reform, one CTO said, “Even though we have lower rates, the new tax law is much more complicated. Basically, Congress kept most of the old rules and layered new rules on top of them. Now it’s like playing a game of three-dimensional chess.”
What's on the minds of Chief Tax Officers
Chief Tax Officer videos
CTOs from different organizations discuss the challenges and transformations facing their tax departments today