Our friends at KPMG are back at it again. Subtly spinning self-prepared statistics into a title: Regulatory Demands Are Changing the Role of Corporate Tax Departments – to suit a different purpose. The reported facts in which I’m interested in – paraphrased:
- Tax department priorities changed from tax planning and effective tax rate/tax deferral to compliance and timely financial reporting
- Difficulties in defining ‘tax risk’
- Time pressures are impinging on the ability to devote time to tax planning
KPMG’s spin on this:
One major inference from the data is that tax executives in 2006, finding themselves burdened by the demands of a highly compliance-oriented environment are not spending sufficient time on tax activities that they believe are most desired by their leadership and are of the most value to their organizations.
Classic. So now this becomes a politicking document for less compliance in favour of more tax planning. Except that’s not where management’s attention is really going.
Change the climate, you change the agenda. Big sticks can work then. But then inferred findings also spark off more consulting. Win-win for KPMG. Not so sure about clients.
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