Navigating the forces of change in tax

Tax policy, artificial intelligence and talent
event 03 Apr, 2025
Navigating the forces of change in tax

In an era marked by geopolitical uncertainty, evolving regulations and rapid technological advancements, tax leaders face unprecedented challenges

The global tax landscape is more dynamic than ever, with jurisdictions implementing measures to protect their tax bases and incentivize climate-friendly investments. Additionally, the rise of generative AI (Gen AI) and the shortage of tax talent are reshaping traditional tax roles and operating models, putting significant stress on tax functions. Navigating the forces of change in tax  explores these complexities, offering strategic imperatives and actionable insights to help tax leaders navigate the forces of change.

The publication highlights three key areas tax leaders should prioritize to create value for their organizations and outlines key steps to help achieve these goals and gain a competitive advantage.

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Navigating the forces of change in tax

Equip your tax function to thrive in an unpredictable future. Discover in-depth insights and strategic recommendations.

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Executive summary - Navigating the forces of change in tax

Tax policy, artificial intelligence and talent
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Key Themes

A Nordic point-of-view of the tax function today  

The current landscape of tax functions in the Nordics is marked by increasing compliance demands and evolving tax policies, which challenge organizations to adapt swiftly and strategically. Embracing technological advancements, particularly Generative AI, emerges as a crucial solution, enabling tax teams to manage compliance efficiently while freeing up resources for strategic initiatives. As tax professionals navigate the complexities of regulatory changes and geopolitical challenges, leveraging AI not only enhances productivity and compliance but also positions organizations to gain a competitive edge in an uncertain future. By focusing on technology, transparency and adaptability, tax functions can transform into strategic partners that drive value and resilience in a rapidly changing environment. 

Ágúst Guðmundsson
Ágúst Guðmundsson

Head of Tax and legal

KPMG in Iceland

"As we navigate the future of tax, it is crucial to focus on the key actions outlined in the report, such as embracing technological advancements, enhancing transparency, and adapting to new regulatory frameworks. Furthermore, we must also remain vigilant about the changing political landscape, which poses significant challenges to taxes and trade tariffs. The evolving geopolitical dynamics can impact tax policies and trade agreements, necessitating a proactive approach to mitigate risks and seize opportunities in this uncertain environment."

Erkki Tiitta
Erkki Tiitta

Tax Partner, Head of Tax Compliance and Transformation

KPMG in Finland

"While navigating the current instability in tax policy, tax functions must remain focused on the transformative power of generative AI. This technology not only reshapes our profession but also fundamentally alters how we work and cultivate talent. Embracing Gen AI allows tax professionals to adapt to new roles, enhance productivity, and ensure compliance, thereby securing a competitive edge in an unpredictable future."

Joanna Mörk
Joanna Mörk

Partner, Tax Transformation

KPMG in Sweden

"What I hear from clients is that tax teams are feeling overwhelmed by the sheer volume of new compliance obligations, without corresponding resource increases. For these organizations, a strategic adoption of technology, like Generative AI, offers a crucial way forward. This approach is vital to effectively manage compliance, liberate time from routine tasks, and reclaim capacity for strategic contributions."

Key actions to help transform the tax function for the future

Despite these challenges, there are significant opportunities for organizations to transform their operating models and enhance their strategic role within the business. By evolving in tandem with other business functions, tax teams can deliver greater value and position themselves for success in an unpredictable future. Some steps to consider when building a tax function ready for the future include:

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Reappraising the operating model

Redesigning the target operating model with a focus on governance, process optimization, people capabilities, service delivery models, technology enhancements, and performance insights.

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Developing a business case and managing stakeholders effectively

Creating objectives and key results (OKRs) to measure and communicate the success of transformation efforts.

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Refining tax governance

Implementing responsible tax policies that align with ESG (environmental, social, and governance) principles to enhance company reputation and help reduce audit risks.

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Building a robust risk governance framework

Identifying geopolitical risks and preparing for various future scenarios.

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Positioning performance in terms of value delivered

Highlighting the tax function’s dual roles as a compliance function and strategic business partner through key performance indicators (KPIs).

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Experimenting and iterating

Taking an agile approach to tax transformation by experimenting with discrete operational areas and building on successes.

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Key contacts

Joanna Mörk
Joanna Mörk

Partner, Tax Transformation

KPMG in Sweden