Design and Implementation of gatewate to prevent tax costs
Client Problem Statement
Client incurring substantial tax costs (USD 6M p.a.)due to incorrect cross-border charges from its overseas associate companies
Recommended Solution
Perform Root-Cause analysis
Design and implement tools and processes to prevent these incorrect charges from being charged
Implementation
Root-cause analysis revealed lack of systemic checks to prevent incorrect costs being charged by affiliates. Though these charges were getting rectified annually, by then substantial tax costs in India were getting paid
A detailed design to implement preventive systemic checks was made and presented to senior management for approval.
Once this was approved, a project team was formed to implement the design through technology intervention.
Various stakeholders who were getting impacted were informed and a change management team to socialize the change and address user issues was put in place
Data conversion issues prior to project go-live were identified and addressed
A post-implementation stabilization team was formed to monitor project progress and address any teething issues
Results
Project delivered successfully with all user issues addressed
Project delivered an annual cost saving of USD 6M for India.
Project also improved compliances with tax regulations reducing risks of penalties
