Case Study: Real Estate
BACKGROUND
ABC Company is a global media company with a portfolio of high-end magazines, websites, and other digital media properties. Its publications cover a variety of topics, including fashion, travel, lifestyle, and technology, and are known for their premium content and sophisticated design. The company has a strong presence in both print and digital media, with a focus on reaching affluent audiences. It has been in operation for several decades and has established itself as a leader in the luxury media market.
CHALLENGE
ABC Company's internal tax team is highly skilled, but the complexities of sales tax law and the scale of the company's operations create a lot of gray areas. As a result, identifying sales tax overpayments and recovery opportunities can be challenging, even for a company with a strong tax team.
SOLUTION
ABC Company sought a second opinion through a reverse sales tax audit conducted by Philip Ghaly to identify any potential areas of opportunity. During his analysis, Philip discovered that ABC Company had been overpaying sales tax on capital improvements made in New York City.
Despite ABC Company's effective management of sales tax compliance, they were not aware that they qualified for capital improvement exemptions whenever they updated their lobby or office space. Given that ABC Company regularly undertook renovations and updates to keep up with fashion and lifestyle trends, this presented a substantial opportunity for savings.
RESULTS
Philip Ghaly's reverse sales tax audit resulted in the identification and recovery of $2 million in sales tax overpayments for ABC Company relating to capital improvements in New York. Through filing a refund claim and working closely with the assigned auditor, Philip ensured the full recovery of the overpaid taxes.
CONCLUSION
This recovery not only strengthened ABC Company's financial position but also improved its tax department's awareness of the available exemptions the company was entitled to, reinforcing its commitment to accurate and efficient tax compliance practices.
AT A GLANCE
CHALLENGES
Gray areas in tax law can make identifying overpayments difficult on a large scale.
BENEFITS
A second opinion can identify areas of opportunity for tax savings.
It can reinforce the commitment to maintaining accurate and efficient tax compliance practices.
It can improve awareness of available tax exemptions.
TIME AND RESOURCE SAVINGS
A reverse sales tax audit conducted by an expert can save time and resources.
It can help avoid costly mistakes that may have gone unnoticed otherwise.
FINANCIAL SAVINGS
The $2M recovery of overpaid sales tax resulted in significant financial savings for ABC Company.
EXPERTISE
Philip Ghaly's expertise in reverse sales tax audits helped identify sales tax overpayments.
He worked closely with the assigned auditor to ensure full recovery of the overpaid taxes.
ADDITIONAL BENEFITS
The recovery of overpaid taxes improved ABC Company's financial position.
It also reinforced the company's commitment to maintaining accurate and efficient tax compliance practices.
OUR MISSION
What sets us apart from other sales tax consulting firms is our commitment to offering top-notch services without charging exorbitant fees typical of other firms.
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We believe that every business deserves quality sales tax consulting that is accessible and affordable, and we have built our practice around this core value.
