Exploring the 'tax triple threat': A comprehensive guide on our site amidst this disruption era
Tax Turmoil: Navigating the Triple Threat to Corporate Tax Strategies
Hey there! Let's dive into the whirlwind of tax challenges businesses are currently facing, according to Rema Serafi, vice chair of tax at KPMG. This isn't your typical suite of problems; it's what Serafi calls the "tax trifecta."
The tax trifecta is a perfect storm brewing in the corporate tax world, consisting of:
- Expiring TCJA Provisions: Say goodbye to lower corporate tax rates by 2025, as key aspects of the Tax Cuts and Jobs Act (TCJA) come to an end, potentially reintroducing higher tax rates and altering international tax provisions[^4].
- Global Tax Reforms: Implementation of OECD-led global minimum tax rules (15% floor) and country-specific measures, leading to increased compliance complexity and double-taxation risks[^4].
- Domestic Regulatory Shifts: Policies like the Inflation Reduction Act’s Medicare drug pricing provisions, corporate alternative minimum tax (CAMT), and stock buyback excise taxes[^1][^4].
Over 95% of C-suite leaders agree that this new tax environment is more challenging to predict and plan for than ever before[^4]. But fear not, this turmoil is not all doom and gloom. It's a golden opportunity for tax departments to position themselves as key strategic drivers of organizational success.
Technology's Role
Nearly all executives (98%) plan to invest in artificial intelligence (AI) or Generative AI technology capabilities for their tax functions in the coming year[^4]. This technology is seen as crucial for navigating challenges like the implementation of the OECD's global minimum tax (Pillar Two)[^4].
However, technology is just one piece of the puzzle. The real magic lies in effective data utilization. An overwhelming 95% of executives believe better leveraging data across the organization will help them anticipate future challenges and influence smarter business decisions[^4]. Yet, only 60% regularly use data to drive decision-making[^4].
The New Tax Heroes
The role of tax departments is no longer just about compliance. They're evolving into strategic partners capable of driving organizational trust and value. In fact, 90% of C-suite leaders now view their tax department as a critical player in increasing multistakeholder trust[^4].
The Path Ahead
To tackle the tax trifecta head-on, businesses should consider the following strategies:
- Invest in technology: Prioritize investments in AI and data analytics to enhance predictive capabilities and streamline compliance.
- Collaborate cross-functionally: Break down silos between tax, finance, IT, and other departments to leverage data effectively.
- Upskill your team: Develop a workforce that blends technological proficiency with tax expertise.
- Position tax strategically: Elevate the tax department's role in strategic decision-making and stakeholder trust-building.
- Consider alternative operating models: Explore managed services or co-sourcing arrangements to access specialized skills and technologies.
The tax landscape is undoubtedly complex, but it's filled with opportunities. By embracing these changes and positioning tax departments as strategic assets, businesses can not only weather these current disruptions but also drive their organizations towards greater resilience and success.
As a tax leader, Serafi has witnessed firsthand the transformative power of a strategically positioned tax function. Those ready to lead through this era of disruption will find themselves at the forefront of organizational innovation and growth[^4].
[^1^]: Lifescienceleader.com on regulatory changes and tax complexity (2025)[^2^]: KPMG’s banking/capital markets report on policy shifts (April 2025)[^3^]: AInvest article on tariff-driven relocations (April 2025)[^4^]: CFO.com analysis of TCJA expiration and global tax reforms (2025)
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- In the face of the Tax Trifecta, tax departments can redefine their role as strategic drivers for organizational success.
- An overwhelming majority of C-suite leaders believe that better data utilization will help them anticipate challenges and make smarter decisions.
- A strategic partnership between tax and finance departments can bolster organizational trust and value, as 90% of C-suite leaders now view the tax department as a critical player in increasing multistakeholder trust.
- To navigate the impending tax challenges, businesses should invest in technology, collaborate cross-functionally, upskill their team, position tax strategically, and consider alternative operating models.
- Nearly all executives plan to invest in artificial intelligence technology for their tax functions, recognizing its importance in implementing the OECD's global minimum tax.
- The expiring TCJA provisions, global tax reforms, and domestic regulatory shifts present a challenging yet opportunistic landscape for businesses and tax leaders, offering potential for resilience and growth.
