Global Tax Regulation: With constantly evolving tax regulations worldwide, there is an increased risk of tax controversy.

Risk of Disputes: The global tax landscape has become more uncertain, with governments ensuring companies pay their fair share of tax.

Transparency and Compliance: Increased transparency around business taxation, such as country-by-country reporting and enhanced transfer pricing documentation, requires companies to manage their tax affairs transparently to avoid disputes.

Technology and Data Alignment: As tax authorities use advanced analytics and e-audits, companies must align their technology and data with these new capabilities to manage and mitigate the risk of controversy effectively.

Reputation Management: Proper controversy management can protect a company’s reputation by demonstrating a commitment to tax compliance and good corporate governance.

Operational Efficiency: A well-managed tax controversy function can lead to operational efficiencies by identifying and addressing potential issues before they escalate into disputes.

Strategic Risk Management: Tax departments are becoming an integrated part of strategic risk management, helping companies navigate the complex tax environment and manage potential controversies proactively.