M&A negotiations and sales tax liability
It’s a common scenario: A company has decided to sell, then due diligence turns up a $2 million...
As a global company that has been in business for more than three decades, this business understood sales tax, but when it entered into the VoIP space, things got a bit more difficult. The abundance of local jurisdictions requiring the collection and remittance of various taxes made it difficult to determine all of the filing requirements. Their sales tax outsourcing provider didn't work with telecom tax and their internal team didn't have the time to research all the information needed to stay compliant. They looked into larger firms to be able to handle both sales tax and telecom tax, but because many of the jurisdictions they would need to file in were small and would have little money due, they'd end up paying the larger firms more than what they owed the jurisdictions. It just didn't make sense. Then they found TaxConnex.
TaxConnex has a deep understanding and history of managing telecom taxes. TaxConnex understands the intricacies of adding a new service line like VoIP within a business and how to manage the numerous tax responsibilities that come with it. By providing the business with a team of experts and pairing a dedicated practitioner with the client, TaxConnex was able to develop a process and implement a solution to fit exactly what was needed at a much lower cost than the larger firms.
"They're just incredibly good partners and they always have their customers' needs in mind," explained the Director of Indirect Tax. "At any given point, if I need anything, they're always available and attentive to our needs."
TaxConnex took over the responsibility of telecom tax for them, including determining where they needed to file and the rules within each jurisdiction. TaxConnex was able to tailor their services to exactly meet the business's specific needs, including managing the in-depth research to determine where and how they needed to file.
"TaxConnex was able to tailor their approach to our individual desires and vision, explained the Director of Indirect Tax. "They implemented a solution and are pretty much self-sufficient. They manage their processes, and it runs like a well-oiled machine."
A leading global communications company and provider of high-speed satellite broadband services and secure networking systems covering military and commercial markets.