You are not alone. According to a survey of more than 200 senior IT and finance executives, less than 30% considered the tax implications of their IT purchases. This oversight might be costing companies millions of dollars according the report by IDC Research and Deloitte Consulting entitled "Factoring Tax Savings into the IT Acquisition Process."
"The bottom line is companies are leaving money on the table and, at the same time, potentially increasing their risk of tax non-compliance," said, Raffi Markarian, a principal with Deloitte Tax LLP's ERP integration services practice. "Major IT purchases, such as an SAP implementation, are often expensive undertakings; in many cases tax savings could significantly offset the Total Cost of Ownership and accelerate the Return on Investment (ROI)."
Companies need to be mindful of the following tax implications of IT acquisitions; sales tax overpayment, property tax reduction, research and development tax credits, sales and local training grants, tax law changes and value added tax. Additionally compliance with Sarbanes-Oxley and HIPPA must be taken into consideration.
A copy of this report is available at www.deloitte.com/us/IDC Survey
Deloitte & Touche USA LLP
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