COMMERCIAL TRANSACTIONS AND TESCM

When developing commercial transactions with third parties, it is always important to consider the tax impact.  Some tax consequences will affect the operating margin above the line, whereas other tax implications may affect the cash flow and below the line profitability.  Tax is a cost of doing business, and like all costs, should be minimized to the extent possible.

 

Working with management, the business development and sales teams, allows the teams to make business decisions that consider the post-tax result in real time.  Allowing you to weigh all commercial opportunities to achieve the best post tax outcome for your business.  The implementation of the business strategy then needs to be coordinated with the cross-functional teams, including, legal, IT, customers support, accounting, etc.  We work together as an integral part of the organization to achieve a seamless coordination of the business-tax strategy with all cross-functional teams.

Customer and Vendor Contracts

When designing customer contracts, it is critical that management makes the best post-tax business decisions.  Understanding the tax ramifications and exposures of your desired business model will allow you to consider other possible alternatives and modify the terms and conditions of the contracts to minimize tax liability and diminish inadvertent tax exposures.

Tax Efficient Supply Chain Management (TESCM)

It is important to understand the tax effects of your supply chain.  When delivering goods and services to customers around the globe, VAT may apply, which can may be reduced by appropriate planning.  In delivering goods within the United States, sales and use tax considerations should be taken into account.

Inadvertent tax exposure or liabilities should be avoided, so management does not experience unhappy surprises.