Adding value in the current environment – Tax & Law
Global and local tax environment changes
The OECD, with the support of the G20, has been intensifying its campaign against BEPS (Base Erosion and Profits Shifting). Weaknesses and inconsistencies in international and national tax systems, as well as techniques applied by multinational companies for leveraging these weaknesses in order to reduce their tax burden, were outlined by the OECD in its BEPS report, and measures designed to prevent tax leakage from national revenues were announced in the BEPS Action Plan.
Simultaneously, certain legislative changes and tax administration initiatives aimed at recapturing tax revenues shifted offshore have been announced by the tax authorities in CIS countries, such as through Russia’s “de-offshorization” initiative.
An active participant in OECD and national consultations on BEPS and on local tax policy changes, EY has first-hand knowledge of relevant developments and can assist in preparing for the changes. We help to identify the potential impact of the changes on operating models and corporate holding structures, and assess the risk of applying various profit repatriation techniques, tax saving structures and transfer pricing policies. We advise on improving corporate tax functions and their processes to help ensure that internal tax management and control functions are ready to face new challenges. We also assist in building sustainable plans for monitoring and mitigating anticipated threats related to tax policy changes.
Our Quantitative Services (QS) offering is focused on enhancing domestic cash tax planning through a combination of technical tax specialization with deep knowledge of business processes and technology. We use a holistic approach to identify cash tax savings across multiple countries by looking at various distinct domestic tax areas, such as expense analysis, inventory valuation, capital assets and incentives. It is a service in which we can find cash tax savings and/or mitigate risks.
Tax processes automation
Although companies cannot avoid performing labor-intensive tax accounting and tax compliance procedures, the relevant processes can be significantly streamlined through their automation. The EY Tax Perfomance Advisory team helps their clients develop automated systems of various scales — from single MS Excel tools for specific procedures to full automation of processes through implementation and adjustment of ERP-systems such as Oracle, SAP and 1C.
We have extensive experience in the automation of compliance and other tax function processes. Our services include specific solutions for automation of parallel cost of goods calculation, currency control and transfer pricing (automated preparation of documentation and notifications).
AllChecked — partial automation of contract drafting
We help clients automate, to the extent possible, routine contract drafting activities. Our inexpensive and practical tool includes the following:
- Diagnostics of a client’s contract drafting and approvals processes
- Preparation of contractual matrix to be used in further automation
- Review and improvement of contract quality, and
- Tailoring our service to clients’ specific needs.
AllChecked is a solution which can help large organizations streamline and optimize their internal contractual work, saving valuable time of legal specialists and internal approvers and ensuring the integrity and simplification of the normally iterative contract preparation process.
HR performance improvement
We assist our clients in optimizing HR-related costs and streamlining their HR processes. Our broad experience in HR operational efficiency improvement includes HR process structuring, optimization and IT integration. We cover all segments of HR management, including recruitment, compensation and benefits, legislative compliance, learning and development and performance management.