International Tax Expert Enterprise
ITE Enterprise is an enhanced, full-feature, international tax management tool designed to help international tax professionals combine their research work with resolution and management of cross border tax issues.
ITE Enterprise enables the user to accurately and quickly perform tasks such as the following:
- Finding a single holding company to route multiple transactions
- Model and plan optimal tax structures for cross border investment and other transactions.
- Creating an entity chart to store information on and graphically represent the tax attributes of a global business.
- Calculating worldwide tax for the entire multinational group of companies
- Calculating worldwide tax impact of cross border transactions
- Optimizing the worldwide tax impact of cross border transactions
- Calculating the worldwide tax impact of transactions that change the legal entity structure
- Finding accurate withholding tax rates, linked to the underlying treaty texts.
- Finding the widest and most comprehensive range of cross-border payment streams on which withholding tax apply.
- Finding transactions that will reduce withholding taxes
- Calculating the total tax cost of cross border transactions
- Calculating effective corporate income tax rates
- Quickly generate a memo regarding the decisions reached, and export/store calculations in Microsoft Excel
- Represent graphical diagrams in PowerPoint.
- Finding key country tax facts
- Enable the user to see the justification for the demonstrated rate through the treaties and domestic law on the IBFD tax portal
The optimizer feature analyses all possible paths for a given cross border transaction in order to find the best route. The optimum answer in these situations can be affected by factors such as inserting an intermediary country, using hybrid payments, and changing the character of the payment from one country to the other. The only way to identify the ultimate route with certainty is
- to identify ALL possible transaction combinations,
- calculate the total tax for each combination, and
- choose the route with the lowest total tax cost.
ITE Enterprise makes the millions of calculations needed, in a few minutes, to provide the 20 best lowest-tax routes. The optimizer allows the user to generate planning ideas such as:
- How to minimize withholding taxes in the paying country
- How to minimize tax in the receiving country by maximizing foreign tax credits
- How to find the ideal holding company structures to defer taxation in the receiving country
- How to insert entities that are not directly involved in the transaction and reduce taxes in those entities
Fine-tune tax planning ideas - Users can also make changes to tax rates, profitability status, etc. to customize the results to fit a particular fact pattern.
Who should use ITE Enterprise
ITE Enterprise is recommended for experienced international tax professionals who
- Need to find alternative routes for a given cross-border transaction.
- Compare the overall tax results of alternative structures.
- Need to manage taxable transactions across jurisdictions, especially those of multinational groups
- Have to quantify the total tax cost of a given cross-border transaction, especially in a group setting
- Need a tool to demonstrate tax decision structures and their underlying logic to colleagues, clients and business partners, including non-tax professionals.