- Hi, I am Rishabh Chopra, a corporate lawyer turned tax and finance recruiter.
- After working at top law firms like Amarchand Mangaldas and becoming a joint partner at Lakshmikumaran & Sridharan, I noticed a gap in tax hiring in India.
- This inspired me to start the tax recruitment practice at Vahura, a leading governance search and consulting firm.
- Here is what tax professionals can anticipate in the future.
Hiring trends to look out for in 2024
In 2024, there is a rising demand for mid-level as well as senior-level talent in the tax domain. Here are some trends I have observed.
Need for M&A expertise
There is an immense need for senior M&A tax experts with an innovative mindset, across law firms, accounting firms, and the Big 4.
That is a great indicator of growth in terms of complex transactions and tax restructuring.
Tax controversy and dispute resolution
Within corporate houses where the changes in the tax ecosystem can impact the business (for instance the gaming sector or the fintech sector), there is a need for Tax leaders who can,
- Negotiate with tax authorities
- Skilled in dispute resolution
- Drive tax controversy-related aspects
- Also, there is a need for those who can navigate audits.
While some may use the term “tax litigation,” it encompasses more than just litigation. Tax controversy involves many aspects beyond court cases.
Tax is no longer just a support function
Rather than just supporting other groups, tax is becoming a full-fledged function.
There is a trend of Indian law firms looking to expand or even build out tax verticals.
This allows law firms to increase their market share in tax advisory, an area traditionally dominated by the Big 4 and top accounting firms.
Tax professionals can become CFOs
In the past three to four years, we have noticed that in some organizations tax heads were working closely with CEOs and CFOs on various deals, not just being siloed into tax matters.
Organizations are open to promoting a Tax Head to CFO if they add value and bring strong capabilities to the table, get involved in transactions, tax controversies, and financial management.
It is about how attuned the Tax Head is to the organization.
While organizations don’t proactively search for Tax Heads to fill in the shoes of a CFO, organizations are increasingly becoming open to this idea.
Emergence of internal audit roles
Why? There is an importance of how governance and compliance need to be looked at, in an increasingly complex regulatory landscape.
Close to 45% of roles that we handled on the internal audit side were newer roles where they were being hired for the first time.
So it was interesting to see how that is also becoming quite important.
Dubai & GCC emerging market for tax pros
In 2023, GCC tax recruiting formed 8 % of our total recruitments.
Looking at 2024, with tax regulations evolving, and economies growing we anticipate continuous demand for tax professionals with cross-border expertise in the GCC region – Dubai, Saudi Arabia, Kuwait, and Qatar.
The Big 4 firms are winning this game by transitioning talent from their India and Egypt teams to the region.
However, the demand is also prevalent in other consulting firms and corporates.
Essential skills for successful Tax Professionals
Agility
Increasingly, promoters and CFOs are realizing the need for agile tax advisors.
They are looking for candidates who understand the broader tax ecosystem, from advisory to restructuring to litigation.
Having that comprehensive perspective at a senior level is of paramount importance when it comes to hiring for a tax head role.
Digital Proficiency
This is another crucial skill set that Tax Professionals should be cognizant of.
For more mature companies and conglomerates, around 72% of senior roles we handled sought professionals with strong digital proficiency.
If you look at the big accounting and consulting firms, they have tax technology teams focused on professionals who can change the landscape in the coming years by dedicating resources.
Open to innovation
It is not just important to possess digital proficiency, but you must also remain open to innovation and drive innovative practices and strategies within your organizations.
This is especially noticeable in the fintech sector, where financial innovation is key.
Communication skills
You may be a strong communicator on paper, but if you cannot put your point across to the relevant authorities or top management, then it is of no use.
Cultural alignment is another area candidates need to focus on.
Growth path and opportunities for tax professionals
A finance professional will typically become a finance controller, and later become a deputy CFO or a CFO.
For Tax Professionals, you start with Direct Tax or Indirect Tax then slowly grow up that pyramid.
Most of the time, the Head of Tax role is considered the end goal. And then you move from one organization to another.
In the past 3-4 years, we have observed how some of those Tax Heads have been active on the tax side.
Interestingly, they have also been working closely with CEOs and CFOs on various deals, acquiring those skill sets.
If you are a Head of Taxation, my advice is to take on more responsibilities. Get involved in transactional matters, tax controversies, and financial management.
Some organizations are still very happy hiring pure tax advisory professionals who can outsource a lot of work to the Big 4s, but that is no longer challenging for a lot of senior and mid-level folks.
They want to be part of those meaty transactions, and conversations. They want to be seen as more than a support; a strategic advisor, specifically within an in-house space.
So if someone has those skill sets and has the end goal of being the CFO I wouldn’t say all organizations are going to be okay with it but some organizations are open to that.
Here is how tax professionals should make career moves.
Corporate
Growth is not only about titles but about what you can accomplish and contribute in various organizations.
If you hold the position of Tax Head in one organization, you may not have much to do.
However, in another organization, you could be responsible for implementing numerous tax strategies and driving significant changes, from a tax point of view. That is what growth is.
Consulting
In the field of Consulting, it’s not only the Big 4s but many accounting firms are now focusing on hiring the right senior professionals in taxation.
Even some law firms are open to that idea.
However, what’s truly important is building relationships. Many people refer to their network when they want to transition to the Consulting side.
Wrapping up…
Be open to learning new things, and understand where the economy and your sector are heading.
Even if your current role does not require new skills, it is important to understand how the market is evolving and keep tabs on the changing landscape.
That is what 2024 will be all about; embracing continuous learning and upskilling.
Leveraging relationships, be it within your organization or the broader ecosystem, can help you drive meaningful change as an advisor, at consulting, law, accounting, and similar firms.
My word of advice? Make sure building relationships is not transactional. You don’t have to have a conversation about business all the time. Have a normal chat. Don’t only think “What’s in it for me?” In conversations, be authentic, not sales-y.
