This report updates three key trends affecting tax talent attraction, retention and development in light of the COVID-19 pandemic:
- Demographic Shifts:
- The pandemic is expected to accelerate retirements of senior tax professionals (Heads of Tax and their direct reports).
- Reasons include health concerns, experience with remote work, potential early retirement packages, increased workloads, and financial readiness.
- Technological Impacts:
- Short-term negative impact on tax technology initiatives due to budget cuts.
- Long-term desire for technological solutions will resume, but current slowdown may affect the pipeline of future tax professionals.
- Tax Reforms and Regulatory Changes:
- Increased pressure on all taxing authorities to raise revenues to offset economic costs of COVID-19.
- Expectations of higher income tax rates, new forms of taxation (e.g., Federal BAT), and potential consideration of VAT in the future.
- The CARES Act may exacerbate the situation by allowing companies to delay tax payments.
The report emphasizes that these trends will make it more challenging than ever to attract, retain, and develop tax talent. It suggests that tax departments will face increased pressure to perform while potentially dealing with resource constraints and significant changes in their workforce.
