The Tax & Accounting business of Thomson Reuters has added support for the new medical device excise tax from the health care reform law to its tax compliance software.
The latest release of its ONESOURCE Indirect Tax global determination software will enable companies to comply with the new 2.3 percent tax on medical devices such as pacemakers, stents and defibrillators. The tax will go into effect on Jan. 1, 2013. Thomson Reuters received input from its medical device manufacturer customers to in an effort to help them comply with the new tax requirements and manage business operations with minimal disruption.
“For businesses affected by the new medical devices tax, achieving compliance will require considerable effort and expense,” said Gary Allen, vice president of software technology, ONESOURCE Indirect Tax, in a statement. “However, Thomson Reuters ONESOURCE Indirect Tax users will be able to easily address this change. Immediately after the tax was passed, we put a comprehensive plan in place to support the medical device tax rate change in our software well before the Jan. 1 deadline.”
Companies affected by the new medical device excise tax, or MDET, risk penalties, interest charges, additional transaction processing time and reconciliation costs to the extent that their systems and processes aren’t ready to cope with the regulation’s demands. Businesses with an automated software system in place are in a better position to reduce these risks and meet the implementation deadline.
“There’s no question that the new medical device excise tax is going to create cost, complexity and risk,” said Stephen James, principal in charge of the Transaction Tax Systems Practice at KPMG LLP, which uses and licenses ONESOURCE technology. “We’re firmly of the view that technology is going to be key to a rapid and successful MDET deployment, enabling companies to meet the implementation deadlines with minimum cost and maximum compliance.”
The ONESOURCE Indirect Tax global software suite is designed to identify, measure, calculate and record the tax and pass the associated tax liability back to a company’s finance applications for booking of the liability in real-time.
For more information, visit http://onesource.thomsonreuters.com/solutions/indirect-tax.
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