INTRODUCTION
In 2021, Mercurius Advisory Services was engaged by a fast-growing Australian e-commerce group to provide global compliance support. With operations spanning Australia, ASEAN, the UK, China, Hong Kong, and a U.S. holding entity, the client needed a reliable partner to manage cross-border filings, including Form 5471 for their U.S.-registered foreign entity.
We appointed a seasoned accountant to lead the engagement, supported by our international compliance team. The result was timely, accurate submissions across jurisdictions, streamlined reporting, and ongoing peace of mind for the client’s leadership team.
DISCUSSION
Founded in 2014, the client has established a broad network of 17 subsidiaries, 13 in Australia (of which 3 are currently inactive), and others based in China, the UK, Hong Kong, and the USA. The holding company operates as a strategic parent entity, supporting subsidiaries that deliver affordable E-commerce solutions, technology, and products to underserved small businesses in local markets.
The company’s mission is to empower small enterprises by providing them with access to tools and services typically unavailable through traditional channels. While the U.S. entity remains non-operational, maintaining accurate records and making compliant disclosures (particularly Form 5471 with the IRS) is crucial for ensuring transparency, investor confidence, and facilitating expansion plans into Europe and the Americas.
REQUIREMENTS
The client needed a partner to:
• Prepare and file Form 5471 for the U.S. holding company
• Ensure multi-country tax compliance and reporting
• Track filing obligations for all subsidiaries
• Provide centralized, transparent reporting across entities
• Deliver reliable support with knowledge of cross-border regulations and deadlines
SOLUTION
Mercurius provided a dedicated compliance specialist, supported by in-house tax experts and a global network of advisors. Here’s how we approached the engagement:
1. Entity-Level Coordination
We mapped the full subsidiary structure and created a compliance calendar, tracking regional due dates for tax filings, statutory reports, and disclosures.
2. Foreign Entity Filing (USA)
As the US-based holding company was not operational, we ensured proper classification and minimal reporting, aligning with IRS requirements for foreign entities.
3. Multi-Country Expertise
Utilizing our multi-country experience, we collaborated with local consultants (where necessary) to handle returns across Australia, China, the UK, and Hong Kong while centralizing updates for the client.
4. Streamlined Reporting
We prepared easy-to-understand reports summarizing compliance status across countries, making it easy for executives and investors to access up-to-date, accurate information.
5. Flexible, Long-Term Support
As the client expanded into Europe, we scaled our support to accommodate evolving requirements, and a dedicated POC ensured seamless communication across time zones and entities.
CONCLUSION
Mercurius ensured accurate and timely filing of Form 5471 for the U.S. holding company while managing compliance across 17 subsidiaries in Australia, the UK, China, Hong Kong, and the U.S. We delivered clear, executive-level reports and offered ongoing advisory support as the client expanded globally.
Backed by 20+ years of experience and a team of 350+ professionals, Mercurius continues to be a reliable partner by providing scalable, transparent solutions customized to complex international structures.
