Tax executives see tax reform as biggest challenge
An 85 percent majority of corporate tax executives perceive tax reform as the biggest challenge they’re facing in the months ahead, according to a new survey.
The survey, by Bloomberg BNA, polled more than 250 corporate tax executives at public and private corporations around the country. Most of them perceive the overhaul of the federal tax code as their chief concern as they worry about the impact it will have on their companies. Over half the survey respondents are uneasy about some of the possible reforms, including proposals for a border adjustment tax, territorial tax system and limitations on interest deductions.
Corporate tax executives are also worried about international tax changes, including country-by-country reporting requirements, cited as a challenge by over six out of 10 tax practitioners. Almost three out of 10 of them expect their companies will operate in more international jurisdictions in the year ahead.
Tax executives are also dealing with challenges at their companies, especially the absence of alignment between their accounting systems and their tax compliance or provision processes. Despite the expected tax reform overhaul, 52 percent of the tax managers polled anticipate no change in staffing levels while 40 percent are looking to add more employees. Mergers and acquisitions are on the horizon, with 81 percent of the respondents expecting their companies to pursue such deals in the year ahead.
“As highlighted by the survey’s findings, corporate tax professionals are facing a wealth of challenges as they look to prepare their businesses for what could be seismic changes,” said George Farrah, editorial director of Bloomberg BNA’s Tax & Accounting division, in a statement.