January 21, 2013
Tax Leaders from Global 2000 Companies Say VAT and Sales and Use Tax Compliance Will Be Top Issues in 2013 and Beyond
According to a recent Thomson Reuters poll, 88 percent of indirect tax executives have seen an increase in activity by tax authorities in the last two years. In addition, nearly two-thirds (63 percent) of respondents are spending more time on tax compliance strategy and planning. The poll was conducted in Q4 2012 at the annual Thomson Reuters SYNERGY Conference, where more than 1,000 tax leaders from Global 2000 firms discussed key tax compliance challenges and opportunities. Additional findings from the survey of 60 executives conducted during the indirect tax and VAT sessions found:
- 75 percent feel that tax authorities have changed the audit process in response to economic conditions.
- 77 percent have seen increased audits in specific states or home rule jurisdictions.
- Only 33 percent of organizations have reviewed their IT systems to ensure continued compliance in light of recent changes to global VAT.
- 44 percent have moved from ERP systems to specialized solutions to ensure compliance with VAT filing requirements and deadlines.
“The SYNERGY Conference gathers tax thought leaders who share their real-world experience with their peers and provide direct feedback to Thomson Reuters on the key tax challenges they face,” said Eric Ruud, Managing Director, Thomson Reuters ONESOURCE Indirect & Property Tax. “Executives are still relying on tax directors to help manage cash flow and cut costs as we continue to recover from an ailing economy, but they are also looking to them to build sustainable global indirect tax best practices.”
To address the increased focus on indirect tax and respond quickly and accurately to increased audit activity, a growing list of Thomson Reuters’ clients have licensed the ONESOURCE Indirect Tax application to consolidate their sales and use tax and VAT operations. For more information on ONESOURCE Indirect Tax, visit: http://onesourceindirecttax.com.
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