Tax Outlook Through the Years
Since 2015, BDO has surveyed tax executives on their most pressing concerns. As we analyze this year’s Tax Outlook Survey findings, we also look back on how tax trends have changed over the years. Through new administrations, significant tax reform and technology disruption, one thing is clear:
The more things change, the more complex tax planning becomes.
A Look back on Tax Executives’ Priorities
2020
Reimagining Tax in the Disruption Decade
Tax Reform Prompts Digital Transformation, While Downturn Looms
2019
Tax Changes Ignite a Butterfly Effect in Business
2018
Tax Executives Primed for Federal Reforms
2017
Tax Reform Takes Center Stage
2016
Tax Directors Foresee Domestic & Cross-Border Growth
2015
tools and insights
What Is Total Tax Liability and What Does It Mean for Your Business?
2020: Reimagining Tax in the Disruption Decade*
Highlights
Tax executives are taking a more mature approach to total tax liability, with 64% calculating it for their entire business and using the results to inform business decisions.
International trade tensions and tariffs are the top driver of total tax liability.
69% of tax executives are making their largest investments in new technologies.
Tax executives move into the C-suite with three in five stating they were “very involved” in planning for an economic slowdown.
Research commences on a global scale with the launch of BDO’s Global Tax Outlook in October 2020.
*The 2020 Tax Outlook Survey was conducted in fall/winter 2019, prior to the emergence of COVID-19 in the United States, but organizations were still preparing for disruption.
Highlights
While tax executives recognize that strategic tax planning is necessary to manage economic disruption, only 58% say they have a high understanding of their companies’ total tax liability.
55% say they will focus on automating processes in 2019.
The results of the Wayfair decision continue to weigh on tax executives, with 65% reevaluating their companies’ sales and use tax compliance.
Executives respond to international trade tensions and tariffs, with 63% reevaluating supply chain and logistics.
2019: Tax Reform Prompts Digital Transformation, While Downturn Looms
Highlights
Tax reform sparks significant changes, highlighting the importance of understanding a company’s total tax liability.
91% of tax executives say implementing tax code changes will be their primary tax issue.
Businesses face pressure for international tax transparency, with 56% taking proactive steps to respond to the OECD’s BEPS Action Items.
Technology continues to accelerate tax transformation, and 44% of executives indicate that issues like talent and infrastructure are the biggest challenge to tax technology implementation.
2018: Tax Changes Ignite a Butterfly Effect in Business
Highlights
Potential federal tax reforms are top of mind, with 100% of tax executives expecting significant changes under the Trump administration.
40% of tax executives put a lower corporate tax rate at the top of their reform wish list.
BEPS remains top of mind, with 51% citing transfer pricing as their top BEPS-related issue.
82% of tax executives make use of the now-permanent federal R&D tax credit.
2017: Tax Executives Primed for Federal Reforms
Highlights
Tax directors believe the 2016 election will determine the future of tax reform, and 77% of tax executives think tax reform will pass under a Republican president.
63% of tax directors feel the cost of tax compliance has increased since 2015.
Following the OECD’s release of final BEPS recommendations, 48% of respondents say international tax planning is their biggest issue for 2016.
2016: Tax Reform Takes Center Stage
Highlights
Uncertainty about tax legislation and its impact on tax rates, credits and other incentives is tax executives’ most-cited issue (43%).
45% of those looking to expand domestically say income or franchise credits or exemptions are the top reason they’d enter a new market.
2015: Tax Directors Foresee Domestic & Cross-Border Growth
35% of tax directors say avoiding material misstatements is their top financial reporting challenge.
READ THE 2020 U.S. TAX OUTLOOK SURVEY
READ THE 2019 TAX OUTLOOK SURVEY
READ THE 2018 TAX OUTLOOK SURVEY
READ THE 2017 TAX OUTLOOK SURVEY
READ THE 2016 TAX OUTLOOK SURVEY
READ THE 2015 TAX OUTLOOK SURVEY
BDO's Tax Transformation Guide
READ THE 2020 U.S. TAX OUTLOOK SURVEY
READ THE 2020 U.S. TAX OUTLOOK SURVEY
READ THE 2018 U.S. TAX OUTLOOK SURVEY
READ THE 2017 U.S. TAX OUTLOOK SURVEY
READ THE 2016 U.S. TAX OUTLOOK SURVEY