Agility Helps Tax Leaders Inform Business Strategy in Real Time

May 7, 2025, 8:30 AM UTC

Tax has always been foundational to business execution and traditionally was grounded in reporting and regulatory compliance. But today, in an environment defined by economic volatility and shifting global policy, tax leaders are expected to step beyond traditional roles and drive strategic decisions that affect their company’s growth and profitability.

In my interactions with C-suite leaders, I’ve seen a growing expectation for tax executives to provide foresight and related perspective. What leaders want from tax executives isn’t just to be reactionary—they want evidence of readiness and scenario planning that informs the broader business strategy in real time.

In other words, it’s critical to connect tax strategy to broader business goals and bring the agility needed to adapt when the unexpected arises.

The organizations best positioned for success will be those where tax planning is directly tied to long-term operational targets and investment goals. If your stakeholders aren’t looking to you yet, this is your moment to show them the value your tax team can bring.

Here are the top questions I’m hearing from business leaders—and how tax can meet the moment.

Are we enabling the broader strategy, or inadvertently constraining it? Tax should be a source of strategic clarity. Executives are looking for assurances that tax not only will keep up with evolving regulations but also will actively support business momentum.

With policy shifts on the horizon—such as tariffs, Pillar Two, and other potential US corporate tax changes—the bar has been raised.

What C-suite leaders want from tax professionals isn’t just a reaction; they want evidence of readiness. That means scenario planning that is quantitative, not just qualitative. It means showing leadership cash tax outcomes under alternate futures, and how different alternatives preserve capital flexibility in the face of uncertainty.

To succeed, it’s important to directly and clearly establish connectivity to long-term operational and efficiency targets.

Are we using tax to enhance value creation, or just to reduce cost? Leading companies expect tax to be a lever for growth, not just an expense to manage.

Whether it’s optimizing capital structure through incentives such as research and development and clean energy, enhancing profit margins by mitigating trade costs, or navigating complex international tax issues through global structuring, tax can drive investment capacity.

Take Pillar Two. It isn’t just about making changes to stay compliant. Rather, it should be an opportunity for tax to work with adjacent stakeholders to explore how the organization can enhance efficiency and boost working capital and return on investment.

The C-suite wants to hear this in economic terms: How is tax leadership strengthening efficient utilization of working capital? How is tax efficiency contributing to shareholder returns? What moves is the tax department making that not only reduces friction, but also accelerates reinvestment and long-term innovation?

When we frame tax strategy as a growth driver rather than just a back-office function, it elevates tax’s value and relevance.

Can tax remain flexible in a volatile environment? While clarity of direction and connection of tax to targeted operational and growth targets are increasingly important, being able to pivot as needed is equally relevant given shifting policies, economic disruption, and evolving market dynamics.

Tax has the dual mandate to embed tax early in transactional design—whether M&A, divestitures, or capital deployment—and to confirm that tax structures allow flexibility for course correction, all without stalling progress.

Flexibility matters just as much as precision. Tax teams must demonstrate they are planning accounts for the current environment as well as multiple possible futures. That’s how tax becomes a partner the C-suite values—and why data-driven modeling and optionality are essential parts of the tax toolkit.

When tax teams build in readiness, they transform tax into a source of stability, providing a real advantage amid uncertainty.

Others’ expectations of tax leaders are rising because the stakes are higher. Shareholders and boards are seeking stability and confidence that their organizations are equipped to navigate uncertainty. And this stability and resilience must be achieved while enabling continued growth.

This is our moment to lead. By clarifying existing complexity, anticipating change, staying close to the business objectives, and designing for flexibility, tax leaders can position tax as a safeguard and a strategic driver of growth, adaptability, and sustained outcomes.

This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners.

Author Information

Krishnan Chandrasekhar is US Tax Leader of PwC US responsible for overseeing the growth of the firm’s tax line of service.

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To contact the editors responsible for this story: Rebecca Baker at rbaker@bloombergindustry.com; Melanie Cohen at mcohen@bloombergindustry.com

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