CEOs believe that the pressure put on public finances by the pandemic response has increased the urgency for multilateral cooperation on the global tax system .
The KPMG 2021 CEO Outlook draws on the perspectives for the future of 1,325 CEOs across 11 major markets as they look to play a central part in rebuilding the economy and society. We’ve connected regularly with CEOs throughout the pandemic as they manage the impact of COVID-19, they’re optimistic about the economic recovery and continue to put an emphasis on leading with purpose. At the same time, critical societal issues — particularly climate change and inequality — are major challenges.
This year’s survey finds CEOs focused on being plugged-in, people-first and purpose-led to grow their organizations.
KPMG’s survey shows that CEOs are more than willing to lead by example to embrace today’s tough leadership challenges. They intend to deliver on their purpose commitments, making the ESG investments and changes necessary to address inequity and launch the race to net zero. They also look to drive growth and prosperity through digital agility and business model innovation, while ensuring that aggressive technology investments are matched by investment in human capabilities and skills.
In relation to tax
Tax risk saw a rise of 8 percentage points from 2020 in the CEO survey.:
Three out of four (75 percent) CEOs believe that the pressure put on public finances by the pandemic response has increased the urgency for multilateral cooperation on the global tax system. At the same time, 77 percent agree that the proposed global minimum tax regime is of significant concern to their organization’s goals on growth. Meanwhile, they’re more worried about regulatory and tax risks than they were prior to the pandemic. The survey also found that 74 percent of CEOs recognize the strong link between the public’s trust in their businesses and how their tax approach aligns with their organizational values. As businesses aim to build back better, a majority (69 percent) of CEOs are feeling increased pressure to report their tax contributions publicly as part of their broader environmental, social and governance commitments.
agree that the proposed global minimum tax regime is of significant concern to their organization’s goals on growth .
of CEOs recognize the strong link between the public’s trust in their businesses and how their tax approach aligns with their organizational values .
of CEOs are feeling increased pressure to report their tax contributions publicly as part of their broader ESG commitments.
Source: KPMG 2021 CEO Outlook
Taxes have become a key part of the ESG-agenda and we are seeing tax transparency topics brought to the level of the C-suite, boards and audit committees. Investors are pushing for more public transparency on taxes and EU and governments are heading in the same direction. From being something that was only embedded in voluntary standards that could be adhered to, tax transparency is now increasingly being adopted in mandatory rules, that you need to comply with.
KPMG Acor Tax
The KPMG CEO Outlook provides an in-depth 3-year outlook from thousands of global chief executives on enterprise and economic growth.
The KPMG 2021 CEO Outlook asked 1,325 CEOs from among the world’s most influential companies to provide their 3-year outlook on the economic and business landscape, as well the impact that the on-going COVID-19 pandemic will have on their organizations' future. All respondents have annual revenue over US$500M and a third of the companies surveyed have more than US$10B in annual revenue.
The survey was conducted June 29 – August 6 and included leaders from 11 key markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, UK and US) and 11 key industry sectors (asset management, automotive, banking, consumer and retail, energy, infrastructure, insurance, life sciences, manufacturing, technology, and telecommunications).