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

Thomson Reuters 

Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs approximately 60,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges (symbol: TRI). For more information, go to thomsonreuters.com.