While pristine [TaO ] is rather inert in its thermal reactions with both methane and molecular hydrogen, the cluster oxide becomes reactive upon ligation with the closed-shell ligand CO . While the presence of CO increases the intrinsic barriers of the C-H and H-H bond activation steps, the efficiency of the overall reaction to generate the insertion product [Ta(R)(OH)O] (R=CH , H) is greatly enhanced by the superb leaving-group properties of CO . The ligand effect of CO has been well mimicked by the electric field of a negative point charge, and mechanistic aspects are addressed by high-level quantum chemical calculations.