Services

Consolidated Tax Payment Consulting

For the introduction of the consolidated tax payment system, specialist advice and support are necessary.

Advantages and disadvantages

The biggest advantage of adopting the consolidated tax payment system is to be able to aggregate taxable income and losses of multiple group companies. The consolidated tax system, which enables management of corporate costs –i.e., taxes – across the group is indispensable for implementing management reforms and corporate reorganization as the group as a whole. However, the system also has disadvantages. You need to make sure that your group will be able to receive the tax benefits by conducting simulations in advance.

Professional advice is essential for the consolidated tax system

When adopting the consolidated tax payment system, a system for consolidated tax payments suitable to each company needs to be selected; therefore, professional advice is indispensable. Clifix provides total support to clients, covering consulting before and after adoption of the consolidated tax system. Leveraging our accumulated know-how, our CPAs and tax accountants will recommend systems and workflows that suit your company from professional viewpoints to assist you in realizing early financial closing and prompt decision making.

Managing as a group as a whole

It would be no exaggeration to say that an increase in administrative burden is the biggest challenge in introducing the consolidated tax system. With the adoption of the consolidated tax system, the tasks of managing the group as a whole change from those of adviser to player, which increased administrative burden. Clifix has been involved in many cases of adopting the consolidated tax payment system, which enables us to efficiently support the managing function. In addition, we can also provide guidance to your subsidiaries, outsourcing services for the subsidiaries, and support for sharing information across the group.

Clifix provides total support for the adoption of the consolidated tax payment system.

Advance consulting for adoption of the consolidated tax payment system

We support the selection of a system for consolidated tax payments suitable to each company by understanding the conditions of each group company and the group as a whole and simulating the state after the adoption of the consolidated tax payment system. As the consolidated tax payment system has both advantages and disadvantages, we will assist you in making the adoption decision by calculating the effect in advance

Preparation of consolidated tax return

In order to achieve early financial closing by the use of a system for consolidated tax payments, we also provide support for the preparation of consolidated tax returns or outsourcing services for the preparation, and checking tax returns prepared by clients. In particular, we promise you to reduce your work burden for the first year of the adoption.

Continuous support for companies that have introduced consolidated tax payment software

After the adoption of the consolidated tax payment system, each company would face various issues in continuing the operation. Clifix will provide better solutions to those tax issues associated with the consolidated tax payment system, leveraging abundant know-how we have accumulated.

Supporting development and implementation of reorganization schemes under the consolidated tax payment system

When developing a reorganization scheme, consideration from tax perspectives covering consolidated tax payments is necessary. To this end, knowledge in both consolidated tax payment and reorganization fields is required. Also, the following items need to be examined.

・ Whether a group reorganization to be implemented is tax-qualified or non-tax-qualified reorganization
・ In the case of purchasing and selling shares to rationalize capital relationship, which of the share trading or tax-qualified reorganization should be implemented first
・ Deferral of gain/loss on sale/purchase of shares between companies in the consolidation group.
・ Whether loss carried forward can be succeeded upon reorganization of the group
・ Impact of the group taxation regime

Clifix will support development and implementation of a well-examined reorganization scheme, covering the consolidated tax payment system. In addition, we will also provide advice on the impact of revisions to the consolidated tax payment system, if any.

Outsourcing services for consolidated tax subsidiaries

When adopting the consolidated tax payment system, subsidiaries concerned often face difficulties to respond to the change. Clifix can provide instructions to persons in charge of tasks required under the consolidated tax payment system, or outsourcing services to conduct all consolidated tax related work on behalf of your subsidiaries. This would enable smooth introduction of the consolidated tax payment system without increasing the burden at the subsidiaries.

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