Tax Planning
CHALLENGE
Due to the wide range of projects, they were working on, and the numerous players involved, our client was dealing with a difficult tax environment. Each project had a budget of between $15 to $25 million, with up to 7 distinct partners each paying a different amount.
The client’s main concern was finding a practical and affordable way to manage their tax responsibilities while assuring the accurate and equitable distribution of operating information among all partners. The reporting system that the project manager oversaw was acceptable for operational needs but was not created to meet everyone’s demands for income tax reporting. Consequently, a mechanism was required to transform these reports to cash and distribute them correctly while considering each partner’s ownership portion and the tenancy in a common agreement.
SOLUTION
A complete solution was offered by our team at Alliance Global Tech Inc. We created a unique set of auxiliary schedules to go along with the project financial statements because we were aware of how difficult the endeavor would be. Each partner had access to these schedules to determine their respective shares of operational income, expenses, and additions to fixed assets.
We also provide a clear reconciliation between the financial accounts with an income tax basis and the financial statements for property management. This method made the procedure quick and cost-effective by ensuring that all partners and their tax accountants had easy access to the required information without having to do additional work.
OUTCOME
Our solution changed how its tax planning was approached. The procedure was made simpler for all partners and their tax accountants thanks to the personalized schedules and reconciliation tools, saving time and resources on tax computations and files. The technology made it possible to report taxes accurately, lowering the chance that non-compliance would result in fines.
Our practical solution also allowed the client to save money while improving overall productivity and freeing up resources for more strategic tasks. It established a new benchmark for how they managed their tax obligations and demonstrated our dedication to offering cutting-edge, custom solutions to each of our client’s particular problems.