73% of Leading Companies Are More Likely Than Their Competitors to Automate the Update of Tax Rates and Laws in a Central Database to Facilitate Access
BOSTON, MA--(Marketwire - February 9, 2011) - In a newly-released report, Managing Value-Added Tax (VAT) in a Global Environment, Aberdeen Group, a Harte-Hanks Company (
"Improving VAT management can contribute significantly to the reduction of audit exposure / risk, but many organizations lack the initiatives, capabilities, and technological enablers to mitigate such risks," states William Jan, Senior Analyst at Aberdeen Group. "Top performers have effective VAT management capabilities as defined by: a strong alignment of domain expertise to compliance measures, and effective technological enablers that allow access to tax information and regulations for accurate transactions."
This report hypothesizes that to achieve success in managing VAT, leading organizations must have effective access to taxability requirements and tax rates for products and services, and streamline processes that support accurate VAT preparation, filing, and remittance / recovery. "While the leading companies are about 32% more likely than their competitors to possess streamlined access to correct tax rates / laws for accurate calculations, the most important difference lies in their ex-ante approach to managing taxes," explains William Jan. "For example: By consistently conducting preparatory audits to ensure readiness for government audits, these top-performing companies are systematically mitigating their risks and reducing audit exposure."
In fact, top companies are 41% more likely than their competitors to perform preparatory audits. Subsequently, these companies reported a 90% positive audit success rate in the past five years."
A complimentary copy of this report is made available due in part by the following underwriters: Thomson Reuters/ONESOURCE and CCH, a Wolters Kluwer Business. To obtain this report, please visit:
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