Tax Accountants Missing the e-Mark
A survey conducted by KPMG of leading Fortune 1000 companies showed that 51% of the companies agree that e-commerce will lead to increased competition over the next three years. Only 24% of respondents, however, indicated that their tax advisors are involved in e-business strategy development.
Greg Smith, KPMG's national partner in charge of Consumer Markets Tax Services claims, "Companies that implement effective tax planning strategies surrounding their e-business efforts will be able to drive improved bottom line results, thereby staying 'ahead of the curve' in today's vastly crowded Internet playing field."
Survey respondents felt that tax should be a key consideration in the areas of sales, procurement, and logistics. The survey also addressed the issues of providing tax services in the arenas of business-to-business and business-to-workforce. Only 18% of survey respondents have looked into revenue-saving aspects of business-to-workforce services, while only 49% have examined business-to-business processes.
Smith regards the B2B processes and B2W services as "unharnessed tax opportunities" that will results in substantial savings when the tax angles are pursued.