According to a new report, the second quarter of this year saw almost four times the number of changes in indirect and value-added taxes than the corresponding period in 2011. To be more precise, Thomson Reuters’ ONESOURCE Indirect Tax rate survey recorded that 1,025 tax code changes were made during the second quarter of 2012, compared with 270 such changes during the corresponding quarter of 2011.
This record of so many dramatic changes in global tax rates within a relatively short duration hints at the value of reliable and value-for-money online accountants, like those provided to many UK businesses by Yorkshire Accountancy, to businesses which are required to keep adapting to such frequent tax rate changes. Such online accountants are likely to be highly valuable to a great number and variety of businesses throughout every one of the more than 175 countries the changes in tax laws of which are covered in this new report.
Indeed, Carla Yrjanson, Thomson Reuters vice president of tax research and content, has expressed concern at the “huge burden” to businesses of rapid tax rate changes, adding: “Whether the changes are increases, decreases or exemptions, the cost to implement them is essentially the same for businesses. Without the right technology, domain expertise and accurate tax information at the country and jurisdiction levels, it’s difficult to achieve compliance in a cost effective manner.” UK businesses could certainly benefit from learning from her warnings.