What does a good Tax department look like?

KPMG Tax Benchmarking Study 3.0

Listening to the marketplace. Bringing back what we hear.

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Go beyond anecdote. Find out what your Tax peers are really up to.

The Tax operations marketplace is changing fast: new resourcing models, disruptive technology, increased expectations from the board and C-suite. Part of your mandate is knowing how you stack up against best practices and specific peers.

KPMG developed its Tax Function Benchmarking Study to help you and your stakeholders ground comparative assessments in difficult-to-find data. The study provides insights on topics such as:  

Global Resource Model Trends
Technology
Data & Analytics


In return for your participation, you’ll receive a confidential version, tailored to your organization and free of charge. This “participants edition” is designed to help you understand where you stand against Tax functions in companies with comparable revenue in your industry.

Global Resource Model Trends

 

Learn how Tax functions are structured, staffed and funded, including headcount trends, salaries, and experience levels. Get detailed utilization rates for shared service centers (SSCs), global business services (GBS), and Tax centers of excellence (COEs), including breakdowns by types of work performed

  • Shared Service Centers (SSC)
  • Global Business Service (GBS)
  • Centers of Excellence (COE)

Shared Service Centers (SSC)

Shared Service Centers (SSCs) is an entity, group, or facility responsible for the handling and execution of specific operational or transactional tasks from across the organization, such as accounting, human resources, payroll, IT, legal, compliance, or purchasing. SSCs may be in one or more locations globally. They are often used to reduce the cost of processing transactions due to wage arbitrage opportunities available in the SSC location when compared to the home country, and because processing personnel are not needed in every corporate function.

Global Business Service (GBS)

A Global Business Service (GBS) is a more integrated and mature evolution of the shared services model. GBS groups can provide services beyond transactional functions and have wider responsibilities and expertise to deliver higher-value functions, such as consulting and business analytics. Use of a GBS organization may reduce the need for such expertise in the finance function itself.
 

Centers of Excellence (COE)

Centers of Excellence (COEs) are specialist groups with a topical or process focus; for example, transfer pricing, transaction taxes, accounting for income taxes, compliance, etc. They can be virtual (i.e., all COE members are not located in the same primary location), and often have multi-jurisdictional remits in their area of specialization. The use of this term is nuanced and it may be used differently in different organizations.
 

Expected increased use of SSCs and GBS

Expected increased use of COEs







Expected increased use of
SSCs and GBS

Expected increased use of
COEs





Technology

 

Discover patterns of use for emerging Tax technologies that drive efficiency, including intelligent automation, ML, RPA, and workflow tools. Learn more about deployments of tax-specific technology tools (e.g., transfer pricing, audit/controversy, etc.), and satisfaction levels with Tax technology available in the market today.





 

93%

of respondents intend to increase or sustain their use of technology consulting providers.

80%

 of respondents indicate they intend to maintain or increase their use of tax service providers.

79%

 of respondents intend to increase or sustain core tax department headcount.

57%

 of respondents intend to implement or increase use of intelligent automation tools.

 



Global Resource Model Trends

Technology

Data & Analytics

Data & Analytics

 

Learn how Tax functions view increased use of Data & Analytics (D&A) to drive operational efficiencies or Tax savings to the enterprise. See how they leverage enterprise systems for Tax data. Understand maturity considerations in the evolution of D&A use for historical data capture and evaluation, to the current diagnosis, as well as forward-looking predictive analytics and forecasting. 





 

In return for your participation, you’ll receive a confidential version, tailored to your organization and free of charge. This participants edition is designed to help you understand where you stand against Tax functions in companies of comparable revenue size in your industry.

[Survey results infographics here? If more than one, suggest pulling from three bulleted topics above. 

 

 For these three sections – would continue to use the graphics we currently on the old web page – slotting them below each of the respective sections.

https://tax.kpmg.us/articles/2019/tax-benchmarking.html

 

Global Resource Model Trends

Summary: How Tax functions are structured, staffed and funded, including headcount trends, salaries and experience levels. Utilization rates for shared service centers (SSCs), global business services partnerships (GBS), and Tax centers of excellence (COEs), including breakdowns by types of work performed.

Technology

Summary: Patterns of use for emerging Tax technology to drive efficiency, including intelligent automation, ML, RPA, workflow tools. Deployments of challenge specific technology tools (e.g. Transfer Pricing, Audit/Controversy, etc.). Satisfaction levels with Tax technology.

Data & Analytics

Summary: Ways Tax functions view increased use of Data & Analytics (D&A) to drive operational efficiencies or tax savings to the enterprise. Leverage of enterprise systems for Tax data. Maturity considerations, in the evolution from use of D&A for historical data capture and evaluation, to current diagnosis, to forward looking predictive analytics and forecasting. 

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Introduction

 

KPMG has released the KPMG Tax Function Benchmarking Study Insights Report which was developed from the aggregate survey results from senior-level tax professionals from companies in varying sectors and revenue sizes. The ongoing survey provides data and insights into how tax departments are addressing various aspects of their tax operating models.  Download the report here.

 

Key Study Findings

 

Global Resource Model Trends

In addition to the traditional discrete tax department structure, tax functions today are typically housed across more than one distinct organizational structure, including: 

 

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