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Against this backdrop, tax and finance functions have a significant opportunity to distinguish themselves as a function of value rather than as a source of cost.
Tax and finance functions are often bogged down with repetitive manual tasks and charged with maintaining compliance — but what if instead they could also capture hundreds of millions of dollars in capital that could be freed up for investment?
A confluence of challenges for tax and finance functions
Yet utility tax and finance functions also face an environment of budgetary pressure, constantly evolving technology and regulatory challenges, as well as talent shortfalls. In 2022, an EY survey gathered insights from 1,650 executives around the world to understand how tax and finance functions of organizations are changing. An analysis specifically of the P&U respondents - representing 74 businesses spread across more than 40 jurisdictions- shows that:
• 78% plan to reduce cost of their tax and finance function and 100% are reallocating cost from routine to strategic activities.
• 43% believe digital tax filing requirements will increase the cost of the tax and finance function and P&U companies estimate to spend $12m over five years
• The inability to hire and retain required talent is cited as the biggest barrier to delivering their tax and finance function's purpose and vision.