Global Value Chain
Helping a Manufacturer Drive Tax Savings and Minimize Risk
A manufacturer of automotive parts with $1B in revenue needed a review of its global tax policies in the context of its evolving supply chain to assess operational and tax opportunities.
BDO reviewed the organization’s current transfer pricing and international tax policies, identifying gaps and areas of improvement.
BDO conducted a feasibility analysis, assessing the company’s current tax structure, considering the organization’s overall tax and business goals.
BDO designed and implemented a new tax operating model that would meet company goals.
Upon consultation, the BDO Global Value Chain team recognized a significant opportunity to drive tax savings, minimize international tax risk and simplify the company’s transfer pricing policies through the following:
The company minimized its local country tax and transfer pricing costs while also transitioning to a more efficient tax operating model.
The company was able to mitigate multiple jurisdictional anti-hybrid issues that were previously undetected.
The company is estimated to achieve tax and operational savings between two and three million dollars per year.
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