CFOs are grappling with a convergence of challenges, referred to as the “tax trifecta,” which is reshaping corporate tax functions. With the expiration of Tax Cuts and Jobs Act (TCJA) provisions in 2025, the OECD’s global tax deal, and heightened regulatory shifts, 95% of executives find the tax landscape increasingly unpredictable. The looming 2025 “tax cliff” is expected to result in potential tax increases of over $4 trillion, with 71% of executives anticipating significant impacts on their businesses. Additionally, the global minimum tax (Pillar Two) is creating concerns, with 86% of leaders worried about the compliance burden. However, this complexity presents CFOs with an opportunity to reposition tax departments as strategic assets within their organizations.
Technology is emerging as a key solution to these challenges, with 98% of executives planning to invest in AI and generative technology to streamline tax functions. While 95% recognize the importance of leveraging organizational data, only 60% are using data to drive decisions, highlighting room for improvement. As tax departments evolve beyond compliance, leaders are reimagining talent models by prioritizing technology expertise and considering managed services models. By embracing innovation and collaboration across departments, CFOs can turn tax into a driver of trust and long-term success.
