TAXATION SERVICES

STRATEGY AND ADVISORY

Despite tax being one of the crucial factors in making business decisions and at times it overtakes commercial considerations, maintaining right balance between the two is imperative in order to maximize stakeholders value. Even after introduction of GST, India has multiple taxes, federal, state and local taxes, impact of which needs to be evaluated holistically. In fact, in some situations, indirect taxes overweigh direct taxes while taking business decisions. Therefore, managing overall tax cost within the acceptable limit is critical while evaluating alternate business situations.

With increasing complexity in tax laws around the world, tax transparency, exchange of information treaties, increased vigilance of tax administrators, digitisation of tax administration and focus on substance over form, it has become essential for businesses to not only ensure that their tax policies and positions are tax efficient but are in compliance with tax laws, and also make sure that they stand the test of scrutiny.

The tussle between the tax payers and tax gatherers will continue eternally as both have conflicting objectives to meet. There is a thin line between “Tax Planning”, “Tax Avoidance” and “Tax Evasion” and various business situations are constantly tested on these three principles. Therefore, management needs to make sure that any tax planning strategy should not be construed otherwise, which leads to prolonged litigations entailing waste of time, cost and resources of the organisation. Clearly defining tax strategies for Indian multinationals having operations across the world is imperative as taxation policies and tax administration in each jurisdiction is different so as to ensure aligned policies and is overall tax efficient.

Sustainability of a business especially global business is heavily dependent upon sound business decisions and therefore, it is critical to have a comprehensive view of taxation framework across jurisdictions. Therefore, management should consider effective and agile tax strategy as an integral part of the overall business strategy and focus on ensuring that their tax function supports the larger business objectives.

Artes team has significant experience of working across industries, sectors and jurisdictions that helps in providing dynamic as also customized solutions for overall business of the group. Our team has hands-on experience of Indian taxation laws & system as well as tax laws in many countries that helps clients in providing focussed solution that too with risk mitigation approach. We work with management team very closely so as to enable them in taking informed decisions which best suits their business needs. We support clients in designing effective tax strategies and hand-hold them during execution of the same.

Our experienced professionals understand business dynamics that helps in crafting sound as well as agile taxation strategies across the group and across jurisdictions, prepare tax policies, taxation SOPs, risk mitigation methodologies, compliance framework, transfer pricing strategies for intra group transactions, disclosure and tax governance framework and proactive litigation minimisation approaches that enables management to focus on their business and growth objectives. Our endeavour is to navigate business organisations through complex web of taxation framework and also remain compliant with tax laws with appropriate disclosures and governance. We offer our strategic solutions across every business situation including investment, divestment, diversification, mergers & acquisitions, corporate structuring, capitalisation, digitisation, supply chain management, IPR planning, exit & repatriation and global expansion & growth.

TAX CONTROVERSY MANAGEMENT

Tax disputes bring significant uncertainties to businesses and it also entail significant costs as also create reputational risk for organizations. Globally tax controversy management has gained attention of senior management and is often a “Board Agenda”. In fact, significant litigation acts as a deterrent for many business transactions and impacts business valuations. Given the innovative business models & transactions coupled with increasing complexities in domestic and international taxation system, makes it critical to manage tax disputes proactively and proficiently.

The growing cost of tax litigation and elongated timeline to bring resolution forces management to adopt innovative approaches and have open mindset to design a holistic tax controversy management strategy, rather than relying solely on traditional litigation approach for resolving tax controversies. In order to minimise tax disputes globally and facilitate ease of doing business, tax administrators globally and the OECD has been researching and introducing alternative dispute resolution mechanism through changes in the domestic tax laws as well as bilateral agreements. Alternative dispute resolution mechanisms, including those under Tax Treaties, Bilateral Investment Promotion Agreements, Advance Pricing Agreements, Mutual Agreement Procedures (“MAPs”) and Advance Ruling are some of the effective options that can be leveraged to effectively address tax controversies.

Artes team has extensive experience in all aspects of tax controversy management, alternative dispute resolution mechanisms and have supported Indian and multinational Clients on some of the largest tax disputes in the country. Our experience extends to traditional tax litigation, Advance Rulings, Mutual Agreement Procedure, Settlement Commission, Dispute Resolution Panel, Advance Pricing Agreements and Arbitration under Bilateral Investment Promotion Agreements.

In order to reduce subjectivity in assessment and litigation process as also minimise tax litigations, the Indian Government increasingly adopting technology-based systems and processes. Introduction of faceless assessment, faceless appeals, digitisation of various processes will help in reducing controversies provided these new approaches are handled by business organisations carefully and by the tax administrators pragmatically. While, the faceless processes are aimed at bringing efficiency, transparency and accountability in the proceedings, it is also perceived as a “Black Box” and hence, the management should be more cautious and diligent filing documents and making submissions that too ensuring appropriate disclosures.

Artes team with its extensive and deep experience in tax controversy management provides proactive and pragmatic guidance, cutting-edge litigation management strategies, high quality technical inputs & insights based on in-depth research, holistic and thorough submissions, effective representation before various forums and complete handholding till the disputes are finally resolved and documented. We strongly believe in a saying “Well planned and prepared approach means half battle is won”. We provide end-to-end solution in tax controversy management from conceptualization till closure of dispute by paying taxes or availing refund of excess taxes paid from the tax administrators.

Our services comprise of:

Advising and assisting in managing tax disputes in a traditional approach including representing before various appellate authorities, tribunals and courts
Advising and assisting in resolving or mitigating tax disputes through alternate strategies such as Advance Rulings, Dispute Resolution Panels, Mutual Agreement Procedures, Advance Pricing Agreements, Arbitration, etc. Our services include holistic advice, preparation of submissions, consultation, briefing senior counsels, representation before appropriate authorities, obtaining orders or resolutions,
Guiding and assisting in complying with orders of the authorities obtained under alternate strategies, etc.
Assisting in claiming and availing refunds basis orders of the authorities
Advising on the impact of such orders on business of the client and future strategies to be devised to mitigate further tax risks

CORPORATE TAX ADVISORY AND COMPLIANCE

There is an increased recognition around the world that tax administrations must have adequate information to help them effectively monitor compliance with the law, and to make informed choices about scrutiny and investigation of taxpayers. Compliance is no longer limited to an annual exercise aimed at filing of a tax return, but has evolved into a full-time function focused on helping the business effectively manage growing needs for providing information and documentation required under tax laws.

Our team takes into consideration Client’s business objectives, operating models and risk thresholds with prime focus on optimizing tax costs and outflows and suggesting innovative solutions to various generic and industry specific tax challenges. We guide, standardize and implement processes to make tax compliance and tax optimization exercise a seamless experience for clients.

Our services comprise of:

Tax Planning, tax compliance and tax litigation support services
Designing strategies for group tax optimization through revamping of business model, group restructuring, suggesting additional tax incentives and deductions etc.
Conceptualizing tax efficient fund raising and fund repatriation strategies
Assisting in developing tax strategies that can help our clients in undertaking effective tax planning and managing tax risk
Advising on tax implications of business transactions taking into account impact of GAAR and other anti-avoidance measures
Preparation and filing of corporate tax returns and other statutory returns under income-tax law after thorough analysis of the tax positions adopted, income computation and disclosure standards and recent judicial trends
Advising on withholding tax implications arising from various transactions or arrangements entered into by the clients
Availing approvals / registrations (including lower withholding certificates) under income-tax law
Employee compensation structuring (including stock option plans) and implementation
Structuring, tax analysis and compliance for BFSI sector, including for alternative investment funds, FPIs, REITs, InvITs, ARCs, etc.
Advising and assisting in representing before the tax authorities in relation to tax assessments, appeals, tax enquiries, enforcements, search & survey or any other proceedings under the income-tax laws
Advising and assisting in representing before the appellate authorities, Tribunals, High Court & Supreme Court through competent Counsels, etc.
Advising and assisting in making submissions to various appellate authorities mentioned above
Advising and assisting in providing response as well as submissions to various kinds of notices received from tax authorities and representing clients before tax authorities in that regard
Advising and assisting in obtaining various tax registrations

We at Artes also believe in partnering with clients and help them to focus on their business objectives by taking over their complete responsibility of corporate tax planning and compliance through a well-trained team members equipped with technology tools through an outsourcing model.

INTERNATIONAL TAX ADVISORY AND SUPPORT

Global business landscape necessitates an in-depth understanding of the interplay between tax and regulatory ecosystems of various countries. The developments around Base Erosion and Profit Shifting (‘BEPS’), Pillar I & Pillar II approaches and introduction of novel unilateral measures by countries to safeguard their tax base, which adds to the myriad of complexities in case of cross border transactions.

In light of legislative and judicial international tax developments and extensive scrutiny of cross border transactions by tax administrators, we assist clients in intricate tax analysis (including withholding tax obligations) and structuring of cross border transactions and agreements. Artes has working collaborations with tax experts globally to leverage on their expertise in cross border transactions. Our comprehensive services include:

Tax Planning, tax compliance and tax litigation support services
Designing strategies for group tax optimization through revamping of business model, supply chain, group restructuring, transfer pricing models, funding arrangements and structures, etc.
Advising on tax implications of business transactions taking into account impact of tax legislations of respective applicable countries, BEPS, MLI, GAAR and other anti-avoidance regulations
Advising on holding as well as funding structures of multinational corporations including strategy for investment, repatriation and divestment considering conflicting regulations prevailing different countries
Advising and assisting multinationals in establishing business presence through wholly owned subsidiary, joint ventures, business collaborations as well as funding strategies
Assessing eligibility of benefits available under tax treaties taking into account impact of domestic anti-avoidance measures, limitation of benefit provisions and MLI
Structuring and tax impact analysis (including withholding tax obligations) of cross border transactions and agreements
Advising on impact of BEPS action plans on the organisations and assisting in redesigning their holding structures as well as business structures to optimise overall tax costs and also mitigate against any additional tax exposure
Intellectual property rights (IPRs) planning to ensure safeguarding of IPRs and tax optimization of income from IPRs that too considering BEPS action plans and Guidelines around Substance
Assisting in assessing Place of Effective Management (POEM) and Permanent Establishment exposure and suggesting safeguards in relation to the same
Analysis of tax outcomes of cross-border digital transactions, including the impact of equalization levy in India
Advising on withholding tax implications arising from various cross-border transactions or arrangements entered into by clients
Availing approvals / registrations (including lower withholding certificates) under income-tax law
Advising and assisting in representing before the tax authorities in relation to tax assessments, appeals, tax enquiries, enforcements, search & survey or any other proceedings in relation to cross border investments and transactions
Advising and assisting in making submissions as well as representing before the appellate authorities, Tribunals, High Court & Supreme Court through appropriate Counsels, etc. in relation to cross border investments and transactions
Advising and assisting in providing response as well as submissions to various kinds of notices received from tax authorities and representing clients before tax authorities in relation to cross border investments and transactions
Advising and assisting in making submissions as well as making representations before appropriate authorities in relation to Advance Rulings, Advance pricing Agreements, Mutual Agreement Proceedings, International Arbitrations, obtaining clarifications or rulings from tax administrations, etc.
Advising and assisting in obtaining refunds from Indian tax authorities
Working with the legal or other advisors appointed by the clients in relation to implementation of their business strategies, entities and transactions and assisting in implementation including review of documents/contracts/agreements and filing it with required authorities

EXPATIRIATE TAX ADVISORY AND SUPPORT

Multinationals operate in different countries through multi-format offices and also depute/second their experts in various countries to support business or execute projects. Deputation or secondment of expatriates to other countries require careful considerations given different tax laws and regulatory regime in different countries as well as minimising overall tax cost for expatriates. Further, organisations also need to ensure compliance with social security regulations of various countries.

We at Artes have worked on complex arrangements of secondment and deputation of expatriates across countries and assisted clients in minimising overall tax cost of expatriates, compliance with regulations of respective countries, optimising social security obligations, entry and exit strategy for expatriates, etc. Our services comprise of:

Advising and assisting in structuring in expatriates’ deputation or secondment, both outbound as well as inbound movements, so as to optimise their overall tax cost across various countries and also ensure that their movements are in compliance with tax regulations of respective countries
Entry and Exit Advisory
Tax Planning for Inbound and Outbound Expatriates
Advising and assisting expatriates in complying with the Indian tax regulations including filing of their personal tax returns, assessments, appeals and other aspects
Obtaining Registration for Expatriates
Advising and assisting in obtaining refunds from Indian tax authorities
Social Security Advisory and Compliance

TAXATION SERVICES

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