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BCOTAX | Case Studies

Client A - Tax Department Outsourcing

Case Summary

Client A was in a time of transition when they decided to use BCOTAX as their outsourced tax department and advisor. As an innovative technology company with global sales and operations, their product portfolio was highly advanced and widely renowned, but without a tax plan to match their ambitious growth plans, they faced many obstacles to remain thriving and competitive.

The Situation

Client A had operations in 12 countries and growing revenue and profitability, resulting in new tax issues in multiple tax jurisdictions. The client required a team capable of designing, implementing and maintaining a quarterly tax provision process which included addressing questions and documentation requests from its financial statement auditors.

BCOTAX was brought on as Client A’s outsourced tax solution to provide income tax provision, corporate tax compliance, global tax planning, and tax support to the clients legal and finance teams.

The Challenge

Client A’s plans for growth and prior acquisitions raised issues for future tax strategies. Our challenges included:

  1. Identifying and managing tax issues resulting from cross-border transactions.
  2. Updating intercompany transactions to reflect global requirements.
  3. Implementing FIN 48 to account for uncertainties in income tax.
  4. Identifying and implementing a strategy which increased available acquired net operating losses. 

The Solution

The BCOTAX team quickly prioritized where action was needed. Our comprehensive approach was designed to recast their tax foundation before organizing the needed framework to sustain their projected growth. Our process included:

  • Assembling a team of tax professionals to resolve compliance and provision issues,
  • Providing the resources and guidance as Client A expanded their international business sales and operations,
  • Implementing a transfer pricing strategy to minimize Client A’s tax risk,
  • Preparing a multi-year FIN 48 and risk management strategy, and
  • Communicating available strategies for Client A to continue maximizing business opportunities while minimizing their tax rates.

The Result

Client A’s management team has a tax structure to meet their ambitious goals, and an efficient quarterly tax provision process. Our relationship with Client A has continued through many business changes, providing outsourced tax department services and tax support as Client A continues to lead the industry with top line sales and next generation technology products.

Testimonials

BCOTAX provides cost-effective and comprehensive tax solutions to growth stage companies not in a place to bring their tax department completely in-house, but not able to get by on their own.

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