How the tax market has responded to Covid-19

A Dynamic Response: How the Tax Market has Adjusted to Covid-19

Tax has often been described as a ‘recession-resistant’ sector– as long as there is an economy, there will always be the need for tax professionals.Indeed, professional services organisations will always need tax compliance and advice, and this becomes even more important during the global challenge we all face. The world has rapidly changed with the spread of the novel coronavirus (Covid-19). During this unprecedented time, it has been inspiring to see our clients and tax specialists working with high levels of resilience and adaptability.

As in-person meetings and interviews were increasingly discouraged, the tax market has continued to grow through remote teams and virtual video conferences. Although tax functions have inevitably slowed to accommodate for remote working, a combination of empathy and resilience has allowed the industry to successfully step up the challenge.

“In the short term, everything I see tells me that the profession has responded magnificently to the crisis”, comments Andrew Hubbard, editor-in-chief at Tolley Taxation. Indeed, there has been an unusual level of competency in handling both the professional and personal impacts of the crisis. Tax professionals have also worked tirelessly to offer excellent client service throughout this time, something that Joe Scriven, Director of Tax Markets at LexisNexis, believes will result in an enhanced reputation of the tax profession in the long run.

In addition to adapting to an entirely new economic and legislative landscape, professional services companies have had to think carefully about their employees. For instance, they have created resources, including podcasts and articles, to help workers cope with the crisis, and have allowed a greater flexibility in working hours to allow for care responsibilities. In many cases, professional services organisations have assisted expats in relocating to their home countries to spend time with family and service clients remotely. We believe that this change will initiate a new era for the tax recruitment. The current focus on global remote working harnesses the international scope that we have been pioneering since our inception.

On top of the practical challenges imposed by reduced global mobility, the International Centre for Tax and Development outlines a new fiscal politics that is emerging from the pandemic, which threatens to disrupt tax models further. As leading accounting and law firms enter a new territory, they must reassess their tax offering and meet the new demands of their clients 

We are confident that this new challenge will only accelerate the tax industry to a brighter future. Having witnessed the resilience of our peers and colleagues over the past year, it is clear that the professional services sector is learning to adapt and excel in new ways.

As such, while we might be inclined to focus on the negative impacts of the pandemic, we have already witnessed rapid and successful changes in the tax industry, and we are hopeful that this attitude will continue.

If you would like to have a further discussion about the global tax market, please don’t hesitate to contact Oleg Rak, Managing Partner of Mason Rak at oleg.rak@masonrak.com or call +44 786 911 3281.