The ever-changing business environment requires companies to focus on their core competence and activities that create value. In the globalized world, multinational enterprises (MNEs) need to appreciate the tax impact of their operations and transactions in multiple jurisdictions to ensure their efﬁciency and survival. Tax compliance is more critical today than ever due to an increased focus on governance & regulatory compliance. Its importance is reinforced due to the reputational consequences and ﬁnancial risks that ensue due to a failure to comply.
For multinational entities, we can:
Help them achieving goals in a tax-efﬁcient manner both at a national and international level, keeping them compliant with the national and international regulatory framework. These services range from conceptualization of the tax strategy by analyzing tax and regulatory implications of transactions to ﬁnal implementation assistance.
At SgC we provide:
- Formulating effective and tax-efﬁcient strategies for inbound and outbound investments;
- Benefiting from opportunities presented by local tax law and bilateral and multilateral treaty network through proper planning;
- Restructuring of acquisitions and divestitures to optimize tax benefits;
- Remaining informed of the latest international developments affecting your business, both globally and locally;
- Procuring advance rulings from relevant regulatory authorities to ensure certainty for non-resident investors concerning their proposed transactions in Pakistan.
- Development, structuring, and due diligence of the proposed business structure, given the commercial objectives, including merger, spin-off, acquisition, or capital arrangement – from a tax and regulatory perspective;
- On-going support and assistance for Implementing the proposed structure, ensuring tax efﬁciencies, regulatory procedures, and intended timeframes.
- Comprehensively analyzing the impact of tax on transactions of direct tax, indirect tax, regulatory requirements and transfer pricing
- Analyzing transactions from a domestic and international law embodied in bilateral and multilateral tax treaties
- In day-to-day conduct of business, identifying tax planning opportunities, and addressing potential problems
- Drafting and reviewing employment agreements
- Tax return preparation
- Representation before the tax authorities, including assistance in tax audits by the tax authorities
- Assistance in appellate proceedings and tax litigation support up to the level of the Supreme Court
- Tax withholding advisory
- Review of tax status and evaluation of tax exposures
- Approval of retirement beneﬁts schemes and funds from taxation authorities and other related matters
TAX VALUATION SERVICES
Valuation is a contested issue at the heart of disputes and negotiations between corporations, individuals, and tax authorities. To meet the tax authorities’ demands requires not only specialist advice but also detailed knowledge of their working methods and practices. Besides a swift and successful resolution of the disputes before tax authorities, it is essential to adopt appropriate documentation processes.
The need for tax valuation often results from changing corporate structuring, resulting in the disposal of assets and alteration of shareholding agreements. These alterations impact business values and have tax implications. The tax implications need to be considered at the time of the structuring of the transaction to maximize the possible tax benefits. In negotiating and agreeing on valuation with tax authorities, unlisted businesses face specific challenges.
Tax valuation services are also critical for Share option schemes, other forms of employee incentive programs, assets such as goodwill, know-how, and other intangibles that require tax valuation under relevant legislation and regulations.
Personal taxation and expert personal tax advice are essential for individuals and high net worth individuals, owners/managers of businesses, corporate directors, and executives, given the constantly changing tax legislation and complex tax residential status issues.
At SgC, we provide advice relating to:
- minimizing tax liabilities
- issues ranging from governance through to reorganization and tax planning for family businesses
- effective remunerAtion planning for company directors
- efficient cross border planning strategies
TAX ACCOUNTING SERVICES
To enhance the value of corporate tax operations SgC’s advisory services provide the knowledge and methodologies required for efﬁciency.
With testing financial concepts being on the rise, resulting from strenuous accounting standards, greater transparency is required. It is proving to be increasingly challenging to prepare tax accounting calculations according to the regulations. We help our clients in meeting their tax obligations. SgC assists its clients in preparing and/or reviewing IFRS/ local tax accounting obligations, providing consultation on technical tax accounting knowledge to transactions and business issues, and assists on tax accounting systems.
SgC has vast knowledge and experience essential to help in addressing complex tax accounting methods. Our professionals work with businesses of all sizes, partnerships, or individual taxpayers. We help our clients achieve their goal, which includes risk minimization and generating cash flows.
The accounting methods planning services include:
- ACCOUNTING METHOD REVIEWS: This includes reviewing trial balances, tax reconciling items to pick out potential opportunities. SgC identifies opportunities, handles administrative filings. We also assist clients with implementing new methods that arise and any issues or complications it has. Taxpayers carrying forward net operating losses can use these accounting methods to minimize tax liability.
- INVENTORIES: Our highly professional and experienced team can review your inventory accounting and, in the context of it, offers changes required to your business.
TAX OPERATION ADVISORY SERVICES
SgC’s advisory services provide the knowledge and process methodologies required for tax efﬁciency.
At SgC we
- Formulate tax strategies that align with your business strategy
- Design tax saving measures
- Develop and implement appropriate technologies for tax processes that reduce costs and increase efficiency
CORPORATE INTERNATIONAL TAX STRUCTURING
Federal and Provincial sales tax extends to the entire value addition process, including the manufacture/resale stage, and contemplates rebating tax paid on inputs and purchases. Thus, Sales tax is not merely a taxation issue. It provides a broad tax base casting a wide net for businesses. Varying Customs Duty is levied on imported items to excluding others, thus necessitating expert advice.
Similarly, Federal Excise Duty is a levy on the manufacturing sector and the services sector.
Potential issues concerning indirect taxation relate to the desire to maximize indirect tax recovery and increase margins and improve cash flow. We ensure maximization of efficiencies for indirect taxes and prevent overpayment by organizations faced with significant customs or excise duties.
CORPORATE TAX COMPLIANCE OUTSOURCING
Companies are ﬁnding it increasingly difﬁcult to manage tax compliance given the continually changing assurance and tax compliance requirements causing corporations to rethink means and ways for ensuring timely and accurate tax filings and returns. Besides, corporations are increasingly confronted with the problem of:
- Lack of or inadequate in-house tax resource
- Escalating or uncertain costs
- Desire to reduce errors through data collection and processing
- Desire to control tax compliance issues, risks, and opportunities
- Need to comply with growing and more visible tax burden
By attending to your compliance requirements, preparing tax returns and computations quickly and accurately, and streamlining data collection, we allow clients to dedicate their full attention to their core business.
At SgC, we offer:
- Consistent application of best practices
- Better use of scarce in-house resources
- A more responsive service within agreed timescales
- Economies of scale
- Better communications through continuity of staffing
COMPLIANCE WITH REGULATORY FRAMEWORK
To further ensure compliance with regulatory requirements, we partner with organizations/ corporations to support their business activities and assist in navigating through the regulatory framework. We advise on:
- Structuring and implementing inbound and outbound investments
- Exchange control, corporate laws, and foreign investment
- Inbound capital flow consulting, including inbound ownership structures
- Entity structuring including the choice of entry vehicle such as a strategic alliance partner, branch, subsidiary, joint venture, etc
- Processing regulatory approvals, including those required from the Board of Investment, State Bank of Pakistan, and other organizations
At SgC, we help in compliance with the regulatory framework by:
- Obtaining National Tax Number (NTN)
- Computation of tax liability to be withheld from monthly salaries, preparation, and filing of monthly/annual statements
- Filing of tax returns, certificates, etc.
Expatriate taxation is a complicated area of personal taxation. Keeping in view the special requirements for taxation matters relating to expatriates, we provide additional services:
- Entry and exit briefing and assistance in compliance matters
- Tax equalization workings
Besides, we provide:
- Tax provisioning and reporting
- Assistance with applying Technical tax accounting knowledge to transactions and other business issues
- Assistance in the selection, implementation, and use of tax accounting systems