The
results of TEI’s recent survey on the structure and size of corporate tax
departments. More than 500 Chief Tax
Officers completed the survey, which updates a 2004-2005 study, producing a
report in respect of which the standard of error at the 95% confidence level is
+/- 4.3%.
Major
findings of the study include:
· Performance
Management: The most common measurement used to evaluate
the tax department’s performance was a “lack of surprises” (72%). More than half of survey respondents reported
using as measures: the results of audits (60%), meeting compliance deadlines
(59%), cash taxes (57%), effective tax rates (53%), measurable tax project
objectives (53%), and staying within the department budget (51%).
· Significant
Deficiency/Material Weakness: Fourteen percent (14%) reported that the
company received a significant deficiency or material weakness from its
financial statement auditors with respect to tax in the past 5 years. Among them, a substantial majority (70%) were
able to remediate the deficiency or weakness in 1 year or less.
· Senior Tax Executive: Similar to the
2004-2005 survey, the majority of senior tax executives have the title
“Director of Tax/Corporate Tax Director” (39%) or “Vice President” (39%). Two-thirds (67%) of Senior Tax Executives
report directly to the company’s Chief Financial Officer (64% did so among
respondents in the 2004-2005 survey).