Oblique tax is without doubt one of the largest, least seen money flows in a worldwide enterprise. Cashflow usually represents 10% or extra of complete income. For a $1 billion firm, that’s roughly $100 million coursing by way of techniques that have to be proper the primary time, each time.
When these flows depend on guide workarounds or brittle integrations, the monetary danger multiplies audits, penalties, rework, and avoidable leakage. In a world of real-time digital reporting and e-invoicing, expertise agility isn’t a luxurious; it’s a monetary necessity.
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The present state of tax expertise suggests uneven progress
Observe the cash: Who controls tech spend
Why funding foresight and ROI matter
The enterprise case writes itself
Six strategic steps to extend expertise agility
The present state of tax expertise suggests uneven progress
There’s excellent news in keeping with the Thomson Reuters 2025 State of Corporate Tax Division report, 94% of company tax professionals really feel hopeful or enthusiastic about the way forward for tax expertise, and 74% anticipate their tech budgets to extend over the subsequent three to 5 years.
But greater than half nonetheless describe their division’s posture as chaotic or reactive, with solely 6% saying it’s optimized or predictive. Bigger firms report extra progress with as a lot as 46% calling their posture proactive. For smaller peer firms, a widening maturity hole seems prevalent, as solely 22% report progress.
Observe the cash: Who controls tech spend
The 2025 State of Company Tax Division report additionally states that; autonomy and price range possession are decisive for pace. With 70% of tax departments saying they will make unbiased expertise purchases, it’s a robust sign that tax can and will lean on options that scale back danger and enhance ROI.
Nonetheless, funding fashions differ: 46% report the tech price range is owned totally by tax, 29% share with finance, and 13% share with IT. No matter mannequin, momentum is constructing.
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Why funding foresight and ROI matter
Cloud-based oblique tax platforms that combine with ERP techniques get rid of as much as 95% of guide IDT processes, customized coding, and workarounds; releasing scarce IT capability and decreasing compliance friction.
The enterprise case writes itself
As found in Forrester’s The Complete Financial Affect of Thomas Reuters ONESOURCE Oblique Tax, organizations implementing ONESOURCE Oblique Tax achieved a 120% three-year ROI with a 15-month payback; lowered bill error charges from 3% to under 1%; reallocated as much as 50% of compliance staff effort to increased worth work; and lowered IT upkeep effort by way of automated content material updates.
These aren’t theoretical projections. They’re measured outcomes from firms that selected to comply with the cash and put money into platforms purpose-built for oblique tax complexity.
Why agility issues now
Regulators are shifting towards always-on digital reporting, rising scrutiny and accelerating change cycles that legacy and spreadsheet-heavy processes can’t match. Each month of delay extends audit publicity and constrains progress into new merchandise or markets.
Notably, 74% of tax leaders say automating repeatable processes is a medium or excessive precedence, and 88% imagine AI will turn out to be central to workflows inside 5 years. This indicators that the operate is able to transfer from exploration to execution.
Six strategic steps to extend expertise agility
- Map the worth at stake. Quantify oblique tax money flows throughout entities and channels and tie automation to danger discount and dealing capital advantages. Use TEI-style assumptions to border ROI, payback, and error charge discount.
- Safe possession and align funding. In case your division should purchase independently (70% can), lead the enterprise case. The place budgets are shared, formalize co-sponsorship with Finance/IT and articulate cross useful advantages (lowered IT upkeep, cleaner knowledge, audit readiness).
- Select an end-to-end platform that scales. Favor cloud engines with automated content material updates throughout jurisdictions and seamless ERP connectors to reduce customized code and downtime. Appoint a Taxologist and construct expertise. Mixing tax, course of, and expertise experience accelerates adoption and reduces dependence on advert hoc IT work. Present ongoing coaching so groups translate expertise into compliant, environment friendly workflows.
- Normalize change with governance and metrics. At the moment, solely about one quarter of departments monitor tech success metrics. You could shut that hole.
- Set up possession for tax tech technique, outline KPIs (bill error charges, submitting cycle occasions, IT upkeep hours saved), and overview them quarterly with Finance and IT management.
- Prioritize fast wins that fund the journey. Begin with excessive quantity, rule intense processes (e.g., dedication, exemption administration, filings) to seize early financial savings and reinvest. Many organizations understand sub-18-month payback after they goal these areas first.
A hopeful path ahead
Oblique tax will solely develop extra digital and extra consequential to enterprise efficiency. The encouraging actuality is that tax leaders have already got the mandate, rising budgets, and confirmed ROI circumstances to behave. By following the cash, proudly owning the enterprise case, and scaling trendy, cloud first platforms, oblique tax professionals can flip compliance right into a strategic, tech agile functionality that protects money move, accelerates progress, and uplifts the whole finance stack.
The trail from reactive to proactive isn’t instantaneous, however it’s achievable. And the monetary case has by no means been stronger. Learn Thomson Reuters 2025 State of Company Tax Division report for a complete take a look at the information.
