Navigating a Complex Regulatory Landscape

The current regulatory environment presents multiple challenges simultaneously. “Companies are trying to figure out what to do. You can’t look at things in just one cylinder. You’ve got to look at tax, law, inflation, and interest rates,” Elon explains.

This interconnected complexity means that tax decisions can’t be made in isolation. “You could save money on a big deduction, but if the interest rates are lower, you might be better off investing that money elsewhere.”

Global Tax Reforms (OECD Pillar Two, BEPS 2.0) have forced companies to shift their focus from planning to compliance and transparency. Companies must invest in data quality, systems integration, and process controls. There is an increasing emphasis on scenario modeling rather than tax optimization.

Areas of highest regulatory scrutiny:

• Transfer pricing (intercompany financing, services, IP).
• Indirect taxes (VAT, sales/use tax audits).
• R&D credits and incentives.
• Pillar Two-related disclosures in financial statements.

One of the most pressing operational challenges Elon identifies is treasury management in the current economic environment. “Over the last few years, we’ve definitely seen a lot of struggles in Treasury with cash flow. It’s been very stressful for Treasury departments, leaders, and CFOs.”

The technical complexity of cash management often surprises organizations: “One of the biggest problems we see is that clients have cash on hand at the company, but they don’t have it in the right legal entity or right place to make simple things like payroll.”

Tremendous ROI From Tax Digitization and Transformation

Tax strategy is evolving from a compliance-focused function to a dynamic, technology-enabled discipline that requires continuous innovation within the constraints of regulatory requirements.

“Many tax solutions still sit outside ERP. Integration of tax tech with ERP is key,” said Elon. “Leading companies are pushing for embedded tax logic.”

Data analytics in tax enable companies to transition from reactive compliance to proactive advisory services. Improved visibility for CFOs and for Boards is enabled by dashboards that link effective tax rate, cash tax, and business metrics.

Elon notes huge ROI from tax transformation efforts, including:

• Indirect tax automation (compliance savings + audit defense).
• Provision process acceleration (close faster, reduce manual errors).
• Data governance improvements that benefit finance beyond tax.

The Talent Shortage Crisis in Tax

A pressing challenge facing the tax profession is a severe talent shortage.

The barrier to entry is high, but the early financial rewards don’t match the investment. “It’s really years eight to ten before you’re making decent money,” he adds. This creates a challenging proposition for young professionals considering tax careers, particularly when other fields offer faster returns on educational investment.

However, the long-term potential is significant. “I know plenty of CPAs and tax advisors who make a lot more than doctors today. They make so much money because the strategies they’re bringing to their companies could save billions.”

Elon notes that the tax profession benefits from younger people. They bring a fresh perspective to problem-solving: “For generations, people would sit down and ask, ‘How do we do this?’—and then follow the same process as the year before. But today, these young professionals look at it and say, ‘Wait, that doesn’t make sense. That’s too slow. I’ve got a better way.’ The new talent is much better than we were when we started. They’re much more tech savvy and have a much different approach,” noted Elon. “It is legal to avoid tax. It’s not legal to evade it. The creativity involved in this process is substantial.”

Looking Ahead: Three Priorities for Tax Leaders