KPMG LLP Acquires US Indirect Tax Managed Services Business from Thomson Reuters
Propelling itself into position as a global market leader in indirect tax compliance services, KPMG LLP has acquired the US assets of Thomson Reuters Corporation’s (TRI) widely respected ONESOURCE® Indirect Tax Managed Services business.
The service will become part of KPMG’s Indirect Tax Compliance Services, which is part of the US firm’s existing State and Local Tax (SALT) practice and KPMG’s Global Indirect Tax Service offering provided by KPMG member firms throughout the world. KPMG will maintain an ongoing relationship with Thomson Reuters through the continued use of Thomson Reuters’ underlying technology to power these US-based services.
“This acquisition brings the market-leading technology, content and skilled professionals of the ONESOURCE Indirect Tax Managed Services business of Thomson Reuters together with KPMG’s demonstrated ability to manage the complex, evolving landscape for indirect tax in the US and globally,” said John B. Veihmeyer, Chairman and CEO of KPMG LLP, the US audit, tax and advisory firm.
“We’re giving our clients a ‘one-stop shop’ with superior expertise, scale and a comprehensive approach to indirect tax management and service,” Veihmeyer added.
“The acquisition underscores the benefits of KPMG’s growth strategy, in which the US firm and other member firms focus on organic and inorganic opportunities to enhance their ability to serve clients with market-leading resources,” Veihmeyer said. “This strategy reflects our decision to invest in the future for our own long term success – and to better serve the emerging and future needs of our audit, tax and advisory clients.”
Service Addresses a Clear Business Need
The global expansion of business, and the concurrent global shift to indirect taxation, has moved indirect taxes beyond the traditional US realm of the state sales and use tax model to include value added taxes (VAT), goods and services taxes (GST), excise taxes, transfer taxes, and more.
Companies of every size from the Fortune 100 to the Mid-Market must now comply with increasingly complex regulations and correctly report their tax positions to a range of authorities globally – or face financial, reputational and trading consequences if they come up short.
“Our team of KPMG professionals, augmented by the newly acquired and highly skilled ONESOURCE Indirect Tax Managed Services team, will bring a new dimension to how companies can effectively manage their increasingly complex indirect tax processes, risks and controls,” said P. Scott Ozanus, vice chair and head of Tax Services for KPMG in the US.
“The acquisition also enables us to provide our clients with the enhanced outsourcing and indirect tax managed services and support that can help them effectively manage their indirect tax obligations,” Ozanus said.
Niall Campbell, KPMG Global Head of Indirect Tax Services, said,
“The shift to indirect taxation continues to change the global tax landscape, making it critical that businesses operating internationally have greater confidence in how they comply. This important acquisition by KPMG in the US, together with the continued strong growth of the network’s indirect tax capability globally, provides KPMG member firm clients with a global network of professionals who can deliver the full range of indirect tax compliance, advisory and related services the current environment demands.”
Terms of the acquisition were not disclosed.
Thomson Reuters said it had announced to customers in December 2011 that it intended to divest this unit to KPMG.