Module 4:
Controls & KPI’s

Controls are the backbone of any effective tax function. They give visibility, reduce risk, and provide the foundation for proactive governance. Without controls, compliance work becomes reactive and error-prone, and leadership loses sight of what’s happening across the organisation.

VJ, reflecting on Shell’s transformation, puts it simply: “Our goal was to change the tax function to a transparent, consistent, and continuously improved process.” PwC consultants add that controls are not just compliance tools—they are essential for building trust, confidence, and control in tax governance.

Controls can take many forms, and understanding which ones to prioritise is critical:

• Process controls:
  Ensuring that tasks are completed correctly and on time.

• Data controls:
  Validating accuracy, completeness, and integrity of tax data.

• Compliance controls:
  Monitoring adherence to regulations and reporting obligations.

• Technology-driven controls:
  Automated alerts, system validations, and AI-assisted monitoring.

In practice, combining manual and automated controls provides both reliability and efficiency. Dashboards, automated reconciliations, and alerts help teams quickly spot anomalies before they become problems, ensuring that leadership maintains visibility and can act on issues proactively.

KPIs turn controls into actionable insights. They allow leadership to monitor performance, identify risks early, and measure the impact of improvements. PwC sums it up: “If you can’t measure it, you can’t improve it.”

Common KPIs include:

• Filing accuracy and timeliness
• Number of errors or corrections
• Risk mitigation effectiveness
• Process cycle times
• Adoption and impact of automation
• Audit filings - data availability and knowing you have all the data

VJ highlights an important caution: “Beware of the watermelon KPIs — everything looks green on the surface, but underneath there are still red flags.” In other words, metrics can give a false sense of security if they only reflect completed tasks rather than underlying risk.

To avoid this, KPIs must be risk-driven, not just activity-driven. VJ explains: “Risk always leads. We design KPIs to ensure the highest-risk areas are under control first. If you only measure what’s easy to track, you’ll miss the areas that matter most.”

The best KPIs reflect both compliance and strategic priorities, showing not just whether tasks are done, but whether they add value. By focusing on meaningful, risk-focused metrics, tax teams can identify emerging issues early, demonstrate impact to leadership, and continuously improve performance. A clear audit trail and one source of truth for your data is the first step that helps to gain insight in these KPI´s. 

Effective KPIs need monitoring mechanisms. Real-time dashboards are increasingly replacing periodic reporting, giving teams and leadership instant insight into performance. Aggregating data across jurisdictions enables identification of bottlenecks, training needs, and improvement opportunities.

Dashboards allow leadership to see performance at a glance and focus on decisions rather than chasing data. This approach frees tax teams to act on insights rather than spend time gathering them.

A successful TCF isn’t just about rules or software — it’s about how people, processes, and technology interact. Clear roles (as covered in Module 2) ensure accountability, while technology streamlines execution, and the TCF defines the rules.

Even the best technology or framework will fail without leadership sponsorship and engaged teams. Identifying “cheerleaders” in your team — employees who can champion change — helps navigate resistance and accelerate adoption.

KPIs are not static. As regulations evolve, business structures change, and technology advances, KPIs must adapt. From our conversation with PwC we can say that the best-performing tax teams measure what matters and continuously refines their metrics.

Teams should take ownership of their KPIs and use them to drive improvement, supported by cheerleaders or champions who help embed a culture of control and accountability.

Several challenges emerge when establishing controls and KPIs:

• Over-reliance on spreadsheets can hinder visibility and increase errors.
• Data quality across multiple regions can be inconsistent.
• Resistance to change can slow adoption.

VJ emphasises the human factor: “Even with the right KPIs, you need leadership sponsorship and engaged teams for real impact.” The combination of technology, well-designed KPIs, and committed people is what makes a control framework truly effective.