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Tax Return Preparation for a Global E-commerce Holding Company

Tax Return Preparation

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. Basically, the client was looking for an experienced accountant to prepare and file returns. Thus, after contracting with us, we appointed our best accountant for completing the desired services.

DISCUSSION

The client founded the company in 2014 and has 17 subsidiaries in total. They have 13 subsidiaries of Australia, out of which 3 are inactive, one company in China, UK, Hong Kong and USA each. They provide affordable E-commerce services, supplies technology and products to small businesses to allow them to compete in an underserved market segment. Implying, its network seeks to expand reach into Europe and the Americas where it intends to provide small businesses with products and services not commercially available to them in present. The holding company is not doing any business in USA and is a foreign entity, the company is only managing subsidiaries.

REQUIREMENTS

The client was in urgent need to an accountant, who could file the tax return of 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 USA and having an address of 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 have years of experience with various clients from different industries, in the said field.

We starts our work with assessing the firmโ€™s books carefully. While preparing the return, we found that foreign corporations were not consolidated in US tax return. They were shown in Schedule K of Form 1120 only and no revenue/cost were shown in the books. One of the subsidiary 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.ย  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 clientโ€™s need 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 return. By entrusting us with their needs, they were able to redirect their focus towards their core business operations.

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