According to the poll of Fortune 1000 consumer market companies conducted by KPMG’s Consumer Markets Tax practice, 51 percent of respondents said e-commerce will lead to increased competition over the next three years, but only 24 percent said that their tax department is actively involved in e-business strategy development, KPMG said.

Of those who said their tax department is involved in e-business strategy, nearly half (47%) of that group said that their tax department is responsible for implementing tax solutions that support the e-business strategy.

"Tax clearly needs to step up to the forefront in today's e-business age," said Greg Smith, national partner in charge of Consumer Markets Tax Services. "Companies that implement effective tax planning strategies surrounding their e-business efforts will be able to drive improved bottomline results, thereby staying ‘ahead of the curve’ in today's vastly crowded Internet playing field."

The findings also point to the emergence of e-procurement trading portals, buying marketplaces where companies look to obtain goods at optimal prices, in the e-business arena. Forty-nine percent of respondents said their firm is utilizing or is considering utilizing such portals in the near future with an eye on enhancing e-business operations and easing margin pressures, according to the report.

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