Multi-Currency Accounting: How International Businesses Can Avoid FX and Reconciliation Problems
A profitable international business can still lose control of its numbers if currencies are not handled consistently. As companies expand internationally, different currencies enter almost every finance process: customer invoices, supplier bills, payroll, taxes, intercompany balances and bank accounts. The problem is rarely the existence of foreign exchange itself. The problem is inconsistent rates, unclear […]
Cross-Border Tax Audits: 6 Red Flags International Businesses Should Watch
Most cross-border tax problems are easier to explain before an enquiry than during one. International groups create multiple records for the same commercial activity: contracts, invoices, payroll records, customs information, transfer pricing files, VAT returns and statutory accounts. When those records do not align, a routine question from a tax authority can become much harder […]
VAT for Global E-Commerce: When Do You Need to Register Overseas?
Your first overseas VAT obligation may arrive before you have an office, employee or company in that country. E-commerce businesses can enter a new market simply by switching on international shipping or selling digital services to customers abroad. The tax position can move just as quickly. Depending on the country, customer type, goods flow and […]
Transfer Pricing for Growing International Businesses: 5 Common Intercompany Mistakes
Intercompany transactions often start informally. Tax authorities do not treat them informally. A growing group may begin with a parent company paying costs for a new overseas subsidiary, sharing staff between entities or charging management fees at year-end. As the group expands, those arrangements can become material transfer pricing issues. Transfer pricing rules generally require […]
Foreign Subsidiary vs Branch Office: What Should You Choose When Expanding Overseas?
The wrong structure can make an overseas expansion more expensive to unwind later. When a company enters a new market, one of the first structural decisions is whether to operate through a separate local subsidiary or through a branch of the existing company. There is no universal answer. The right choice depends on liability, tax, […]
Hiring Remote Employees Abroad: When Can It Create a Permanent Establishment?
A flexible hiring decision can become a tax question faster than many businesses expect. Hiring one employee in another country can look like a straightforward HR decision. In some situations, however, the employee’s activities can contribute to the company having a taxable presence in that country. This is generally discussed in terms of a permanent […]
The fraudulent side of the furlough scheme
The UK’s furlough scheme was implemented in March 2020 – the same day that a national lockdown was announced. The speed and urgency of its creation has been widely commended. However, its implementation has been criticised for being too hasty and at the expense of stringent security checks, leading to countless cases of fraud. Some […]