INTRODUCTION
A client came in contact with Mercurius in 2021. They run an E-commerce holding company that operates through subsidiaries in Australia and the ASEAN region as well as locations in US and UK. The client was looking for an experienced accountant to prepare and file returns. Thus, after contracting with us, we appointed our best accountant to complete the desired services.
DISCUSSION
The client founded the company in 2014 and has 17 subsidiaries in total. They have 13 subsidiaries in Australia, out of which 3 are inactive, and one company is in China, the UK, Hong Kong, and the USA. They provide affordable E-commerce services, supplies technology, and products to small businesses to allow them to compete in an underserved market segment. This implies, that its network seeks to expand its reach into Europe and the Americas where it intends to provide small businesses with products and services not commercially available to them at present. The holding company is not doing any business in the USA and is a foreign entity, the company is only managing subsidiaries.
REQUIREMENTS
The client was in urgent need of an accountant, who could file the tax return for the period July, 19 to June, 20. The client’s primary objective was to find a reliable and experienced tax preparer who could address their diverse financial requirements in a streamlined manner. Also, their company is doing business in the USA and has an address in Australia so the company has to file form 5471. The company is filing returns for the period July to June.
SOLUTION
Mercurius holds expert accountants specifically trained for filing tax returns. Each of them has years of experience with various clients from different industries, in the said field.
We start our work by assessing the firm’s books carefully. While preparing the return, we found that foreign corporations were not consolidated in US tax returns. They were shown in Schedule K of Form 1120 only and no revenue/cost were shown in the books. One of the subsidiaries was 100% owned by the company and another was 95% owned. There were no inter-company transactions between holding and subsidiaries for the period mentioned above. We prepared its tax return on time, as timely closure of books was crucial for the 2021 franchise tax return.
The client’s pursuit of convenience and efficiency in handling their financial obligations helps take a unified approach. Recognizing the significance of meeting these requirements, the client placed great emphasis on securing the services of a capable and reliable company.
CONCLUSION
For Mercurius, meeting the client’s needs with proficiency is a top priority. Thus, when this new client appointed us to look after their financial services, we first reviewed their books and then proceeded with filing tax returns. By entrusting us with their needs, they were able to redirect their focus toward their core business operations.
