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Rolf Masdorp | Public accountant Tax consultant

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The difference is in the result

Had you ever expected that you would enjoy talking to your tax consultant?

Tax matters as such usually appear from the outside to be a rather dry matter, something one wants to get rid of as quickly as possible. Something that has to be done probably once a year. There are other more important issues, such as the day-to-day job. But this issue is to do with more than just your money.

We believe that this issue also has to with your integrity, your rights as an honest citizen and with your feeling comfortable with our advice. We achieve this by looking at you as an individual, and also by showing you new perspectives and optimisation potential in your tax fact pattern which you probably have not thought about or which no one has alerted you to yet. There is a good reason why, over the years, we have constantly adjusted our services to the permanently increasing requirements of our clients and of the market.

We operate mainly in the following areas:

Tax work – Compliance

One aspect of our holistic approach in serving and advising our clients is the entire field of compliance - meeting all statutory and legal obligations by diligence in our work. This is regardless of whether the work is completing a tax return, bookkeeping or management accounts and reporting packages for decision-makers.

General obligations in the taxation process

To pay the taxes after they have been calculated is one thing. Something completely different is to determine the tax obligation as such. This is where in the last years the obligations of enterprises to make this determination increased. Those redefined obligations are mainly to find in the following areas. They are independent of one another and each has to be fulfilled in its own right.

Tax compliance

Rules and regulations have to be adhered to. This holds true for such rules which deal with the actual determination of taxes and their payment. But it also holds true for the obligations to provide proper and adequate documentation. Those obligations expand continually. In every enterprise which consists of more than one person reconciliation is necessary to meet the ensuing requirements. These reconciliations have to be documented and such documentation has to be kept on record. Otherwise the tax office may levy painful fines. We can support you with our long-standing experience to fulfil these obligations.

Process documentation

When an enterprise determines the bases for taxes, processes have to be stablished which guarantee that such bases are determined correctly, complete and unchangeable. The processes applied have to be documented and it has to be ascertained that they are adhered to. The respective controls also have to be documented. This process documentation has to be presented to the tax office in case they ask for it. If the documentation cannot be presented in a timely manner the tax office can legally estimate the taxation bases. We gladly support you to document your processes and make them "safe to audit."

Tax risk management

Every enterprise is obligated by law to make sure it pays the taxes it owes. The tax office will not counter-check every voucher in detail in the future. It wants to rely on adequate controlling meas-ures which have to be implemented by the enterprise. Then such controlling measures will be checked and the underlying vouchers will only need to be verified on a sample basis. In case such measures have not been implemented, they naturally cannot be checked and the tax office can again levy painful fines. We will support you with our knowledge against the background of many projects, which we successfully implemented in the past.

Transfer (Intercompany) pricing documentation

Enterprises operating within multinational groups are under the obligation to document the appropriateness of the prices which they charge within such a group for services rendered or purchased and/or for goods sold and/or bought. Even before a tax audit starts, the tax auditor can ask for such a documentation. In case it cannot be supplied timely, it often times takes a great deal of time and effort to be prepared. To prevent this, it is always preferable to prepare the documentation beforehand, systematically and orderly. We know where to look and are happy to support you with our expertise.

Permanent establishments

It is widely unknown that permanent establishments which have been set up in Germany by a foreign enterprise (and vice versa) have far-reaching obligations to document their business. The tax bases for these permanent establishments have to be calculated in Germany (or rather throughout the OECD-countries) in a way as if they were the result of a dealing at arm's-length, leading to a new and comprehensive documentation and to the obligation to prepare financial statements for tax purposes. Quasi-formal contracts have to be drawn up which have to fulfil the tax requirements and which have to be commercially viable. They have to be adhered to and this adherence needs to be documented. Also in this case the tax office has the right to levy fines in case such documents cannot be presented on a timely basis. We are looking forward to support you with tax advice regarding the tax aspects if such "contracts" and to document everything later on so that also here a tax audit is nothing to be afraid of.

Virtual tax audit

If an enterprise complies with all the tax rules and regulations is often times only clear, once a tax audit is completed and once the "dust has settled." This may result in all kind of negative effects, from back payments to fines and indictments. To avoid this and to create certainty in this regard, we offer to audit your enterprise "virtually." This is an audit performed by our firm to establish of whether there are risks and if so, at which magnitude. Then most things can be cleared up before-hand and corrected so that for your company a tax audit with neither result in back payments for taxes nor any other discomforts which would disrupt your operative business.

Tax work – Structural optimisation, defence & rescue

Structural optimisation

Our focus in implementing your tax and financial structure has to do with analysing your status quo, identifying weaknesses and realising intelligent and shrewd measures to achieve optimisation. In doing so, our strategies and concepts take into account both our clients' individual requirements and their markets and competitors.

Defence

In this area we strive to represent our clients' interests, such as during tax audits, in appeals against assessments as well as in law suits against the tax office, but also in cases of alleged tax fraud. Our strategies are based on many years of experience and strive to master each potentially challenging situation professionally to your utmost satisfaction.

Rescue

Anyone can make a mistake, and particularly in the area of tax law challenges can arise that require a responsible approach. We advise our clients how to avoid certain issues by filing a corrected return. This will often prove to be the remedy of choice to salvage wrongdoing effectively and avoid making waves. It also allows for the individual to actively work on the correction of any former wrongdoing. This is an area where you can rely on experience that is tried and true.


Company analysis and structural optimisation

Our corporate analysis shows companies the value added with which they are operating in the market and where this value added is created. In optimising a company's structure we analyse the effect of the current legal structure on the tax situation and show where there might be potential for improvement. If required, we cooperate with qualified partners, such as lawyers. Our network is small, exclusive and has proved its effectiveness for many years.

Forensic audits

In analysing a company's accounts we can establish if the representations made are in line with the legal requirements and also if they represent the actual commercial reality. We analyse the available data minutely. The advantages of forensic audits are manifold: In detecting potential damages we gain time for our clients before third parties obtain the information. Our work can show shareholders and board members that potential wrongdoing must be rigorously investigated and exposed. In short: our work ensures that the damage is limited and/or reduced as early as possible.