Tax Executives List Tax Compliance as Top Focus

Tax leaders are spending more time on tax compliance strategy and planning, according to a recent poll by Thomson Reuters, provider of tax and accounting products and services. The poll was conducted last year at the annual Thomson Reuters SYNERGY Conference during the indirect tax and VAT sessions.

The survey also found that 88 percent of indirect tax executives reported an increase in activity by tax authorities over the last two years. Seventy-five percent of the 60 respondents believe changes in the audit process are due to the current economic conditions. In addition, 77 percent reported seeing an increase in audits in certain states.

“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.”

The poll also reported that approximately one-third of organizations have ensured compliance with the new changes to VAT by conducting a review of their IT systems. In addition, 44 percent have already moved from ERP systems to specialized solutions, in accordance with VAT filing requirements and deadlines.

Moving forward, tax executives expect continued and increased focus on VAT and sales and use tax compliance.