Finance and Accounting
Stringent reporting requirements, transformation of revenue authorities and their technology platforms change tax reporting. Genpact's Tax Compliance Services help businesses lighten the load and focus on transparency, facilitating cross-border collaboration, process efficiency and effectiveness, and visibility and control over local compliance outside headquarters. Our clients benefit from Genpact's broad, country-specific knowledge and tax accounting expertise, which we have successfully applied for global enterprises in multiple industries, as well as our ability to operate intelligently, at scale.
Genpact Tax Compliance Services, part of our Finance and Accounting (F&A) portfolio, help clients minimize the risk of forfeiture and maximize future benefits via a wide range of tax process and operations management solutions.
We design, transform, and run intelligent operations that provide comprehensive tax compliance support for corporate and transactional taxes. In addition, we prepare premium tax returns for insurance businesses, assist in VAT and S&U filings and associated reconciliations, prepare U.S. federal and property tax returns, and provide information regarding U.S. use tax for nexus studies, response for notice.
Our solutions include:
- Tax accounting, effective tax rate analysis, foreign tax credits, and balance sheet analysis
- Reconciliation of provision and deferred tax accounts, valuation allowances, Fin 48 reserves, and state taxes
- Corporate direct tax returns
- Transactional tax returns, including VAT, S&U tax, property tax, and premium tax
- Preparation of transfer pricing documentation
We use a varied range of effective analytical tools and technologies for our clients' tax processes. In addition, Genpact's tax compliance expertise extends to proprietary and top-of-the-market tools, such as Tax Stream, Onesource, and Global Integrator.
$8 million business impact through VAT reclamation process improvement
Genpact helped a UK services company close process gaps leading to more than $16 million in un-reclaimed VAT. By improving new vendor set up and correcting existing documentation, the team ensured near-cessation of reclaimable VAT leakages. Genpact also put in place robust controls, for instance by reviewing all invoices for certain vendors. Consequently, unclaimed VAT dropped by 50% and dollars at risk by $8 million.
$12.8 million in P&L impact through tax accrual rectification
A financial services company's provincial capital tax account had an accrual of $13.2 million, which overstated the company's liability due to errors in asset value calculation in the Oracle ERP system and over accruals of tax balances. Genpact corrected the tax liability—including through asset value re-calculation and manual journal entries. By doing so, the team delivered $12.8 million in P&L impact and improved controllership.
30% improvement in tax returns submission accuracy through process improvement
A security software manufacturer faced high numbers of errors in international tax submissions. In response, Genpact identified root causes such as incorrect computation methods and lack of training. The team then formulated a solution to enhance control and accuracy in returns, leveraging automation wherever possible. As a result, the manufacturer has seen a 30% improvement in tax return accuracy and significant reduction in manual effort.
Tax shield benefit of $27 million and P&L impact of $1.3 million in six months for a diversified manufacturer
The company lacked adequate IT systems and staff knowledge to meet regulatory demands or correctly calculate accumulated and annual depreciation for fixed assets, leaving the business with unfiled claims for additional depreciation. Genpact redesigned the depreciation process from end to end to track every asset and calculate the correct depreciation per U.S. law. This yielded a bonus depreciation of $77 million on top of the $1.3 million in P&L benefits and the $27 million in tax shield impacts.