Understand the importance of tax master data cleansing for your company, avoiding rework and mitigating operational risks.
We already know that data accuracy is essential, which is why Level Group created Level Tax, a specialized practice dedicated to your company's legal and tax matters.
One of the tools we developed performs an automated analysis of the entire Material Registration database, thus aiming for and ensuring proper classification in tax credits and non-cumulative taxes across all company acquisitions.
However, the most compelling aspect is that a fully auditable technological solution supports this application, reducing the risks of future fines.
Why perform this analysis across the entire Material Registration database?
Companies and suppliers change addresses, phone numbers, or even go out of business daily. Therefore, for a company with a large base of customers and suppliers, keeping this database clean and up to date is a critical task to avoid registration inconsistencies.
Has your company ever performed tax master data cleansing?
If the answer is no, your company is taking serious risks. If you already perform this cleansing, evaluate how these processes are being executed. Remember that this practice must not only be ongoing, but is also a cornerstone of your business health.
Learn how we eliminate tax risks and potential fraud with our Tax Master Data Cleansing solutions:
- 1st: ENGINEERING TEAM
Our engineering team visits the company's production areas and maps all materials in the incoming registration system.
Thus, we photograph and analyze each material following a proprietary questionnaire designed to support the correct tax classification of the item.
- 2nd: TAX TEAM
The Tax Team receives the reports containing the analyses carried out by the engineering team, including a brief summary of how each material is used in the production process, along with photos or even videos. We then perform the analysis based on the latest legislation, doctrine, and case law to issue a formal opinion regarding the credit eligibility for each material.
- 3rd: APPROVAL TEAM
The company receives the finalized reports, signed by each team's lead. Following its review, the company can either approve the report or return it for revision with comments on any questions or items that need correction.
Tax Master Data Cleansing and its benefits:
- Work involving both an engineering team and a tax team;
- Analysis by the engineering team of the company's entire Material Registration database, including machinery spare parts, along with the completion of a targeted questionnaire designed to support proper item classification for tax credit analysis, supported by photo or video evidence.
- Once the application of materials is established, the tax team examines all parameters and determines their classification, providing the legal basis and both administrative and judicial case law, incorporating the most recent and consolidated decisions on the subject.
- All information is compiled into a technical report signed by the designated specialists from both the engineering and tax teams.
- All work performed is supported by a digital platform called FÓROS, proprietary to Level, which is fully auditable and features automatic report generation to withstand audits and/or inspections by regulatory authorities. It also features dashboards with KPIs and charts that track project progress in real time.
To learn more or clear up any questions about Tax Master Data Cleansing, find out more on our website.
