Thomson Reuters Survey Reveals 80 Percent Increase in Indirect Tax and VAT Audit Activity

New York, May 4, 2011 – A Thomson Reuters survey conducted with global
companies showed that despite an 80 percent perceived increase in audit activity,
less than half of companies (48 percent) automate the entire indirect tax process
— from tax preparation to remittance and recovery. The automation process
is a critical component of achieving best-in-class indirect tax performance,
according to Aberdeen Group (“Managing Value-Added Tax in a Global Environment,”
January 2011). In addition, Aberdeen recommends that companies centralize management
of tax information and establish standardized procedures for managing government
audits.

“As government continues to rely on indirect tax and VAT to address their
budget shortfalls, businesses, more than ever, need to implement best practices
to mitigate the skyrocketing costs associated with complying with the dynamic
indirect tax landscape,” said Carla Yrjanson, vice president of Tax Research
and Content at Thomson Reuters. “Based on the survey findings, more than
half of the companies simply need to use technology to automate the entire indirect
tax workflow process to achieve best-in-class performance and compliance.”

Additional highlights of the report include: