Mergers and Acquisitions
Thomson Reuters Acquires Largest Canadian-Owned Tax Compliance Vendor
Acquisition shows an emerging global perspective on professional tax compliance, and makes Thomson Reuters one of the top three pro-tax providers in Canada, behind CCH, a Wolters Kluwer business, and Intuit.
Jan. 12, 2012
January 12, 2012 – The acquisition of Dr Tax, the largest Canadian-owned tax compliance vendor (prior to the buyout), by the Tax & Accounting business of Thomson Reuters, shows an emerging global perspective on professional tax compliance. For firms with individual and business clients with reporting requirements on both sides of the border, the potential for integration of the tax compliance functions within the same suite will be significant.
As one of the most widely-used professional tax systems by Canadian professionals preparing T1/TP1 personal taxes, T2 corporate returns and T3 trust returns, the acquisition immediately places Thomson Reuters in direct competition with Intuit and CCH, a Wolters Kluwer business, for tax professionals in that market, and Thomson Reuters says it intends to continue offering the tax programs and also to work toward integration with some of other professional systems Thomson Reuters offers.
“In the near future, we anticipate offering integration between Dr Tax and many of the programs in the CS Suite and OneSource product lines,” Jon Baron, president of the professional unit within the Tax & Accounting business of Thomson Reuters, told CPA Practice Advisor on Thursday.
The CS Suite is a full family of technologies geared toward tax and accounting practices, including individual and business tax compliance, practice management, document management, accounting, write-up, trial balance, planning, financial analysis, client portals and other solutions. The OneSource line is focused on corporate accounting and taxation.
“Enabling integration between Dr Tax, the CS Suite and OneSource will give professionals with clients in Canada and the United States the ability to use a single suite, enhancing their productivity,” Baron added. The combination should also be valuable to those with individual clients with reporting requirements on both sides of the border.
Dr Tax is known in Canada for its DT MAX tax compliance software, used by more than 3,000 Canadian accounting firms, and for its UFile and ImpôtExpert consumer software lines, which are sold online and through retail outlets. The company is headquartered in, and will continue to operate from, Montreal.
Thomson Reuters will retain Dr Tax’s product lines and facilities after the acquisition. “Customers should expect the same exemplary products they are accustomed to, managed by the same development team and supported by the same customer service team,” Baron said. “For Dr Tax customers, it will be business as usual.”
“This is good news for Dr Tax customers and employees, because Thomson Reuters delivers sophisticated technology, innovative products, and a focus on customers’ needs” said Malcolm Campbell, vice president & general manager, Dr Tax Software Inc. “As we contemplated our future in the tax software market, we decided it was in the best interest of our customers to join with a company that can provide the resources to take our offerings to the next level.”
The financial terms of the acquisition have not been released.