Tax Planning Gains Resources: KPMG.

• Position: Brief Article

As companies demand more from their tax departments, Fortune 1000 tax departments are diverting more resources toward tax planning and are increasing spending on technology to handle their growing corporate role.

So says a recent survey conducted by KPMG LLP's Tax Management Solutions practice. The number one driver of the trend toward technological innovation within the tax department, the study concludes, is the potential benefit it offers to companies in the forms of lower effective tax rate (ETR) and elevated bottom-line performance. The survey also found that a 1 percent rise in ETR was accompanied by a 14 percent increase in spending on tax planning, a sign that high-ETR companies are turning to technology and the use of strategic tax planning to strive toward lower ETRs.

"We're seeing tax departments being asked to actively contribute to a company's bottom line, and shift away from their traditionally heavy focus on compliance. The tax...