Even though there are taxation principles widely recognised and applied on an international and global basis, much of tax law is specific to local jurisdictions. It is important that energy retailers have access to local tax advice and this is particularly so with the myriad of energy sector specific measures. FTI Consulting has a team of international tax professionals and a network of local tax law specialists.
Our Service Offerings
Retail energy companies involved in mergers, acquisitions, divestitures, or restructuring face a myriad of costs, including taxes related to the transaction. Transaction taxes can be direct — corporate and energy sector taxes — and indirect — VAT and stamp taxes. FTI Consulting professionals, ideally armed with vendor due diligence and buy-side due diligence, develop strategic solutions to tax issues that present possible risks or opportunities in the transaction. Our goal is to help our clients understand and optimise their position. Supporting this goal is the recognition that many retail energy companies operate in more than one jurisdiction. In these cases, we work with local tax advisers as part of a Global network known as WTS which covers more than 100 jurisdictions.
When dealing with international tax matters, it is vital to combine local law with the international tax framework (particularly around ownership and financing issues) and the nuances within the retail energy sector. FTI Consulting has a team of seasoned International Tax professionals and through its global network has access to local tax law specialists in more than 100 jurisdictions. These teams work together to successfully deliver realistic and pragmatic advice across energy sector projects.
Corporate Tax Compliance/Reporting
It is important that retail energy companies have access to local tax advice that can support them in managing their tax obligations. FTI Consulting, along with its international network of local tax law specialists, are able to essentially act as an outsourced tax department to assist retail energy clients with their corporate and indirect tax compliance and reporting.
Research & Development Tax Solutions
The retail energy sector has benefited from various R&D and intellectual property incentives in different parts of the world. In addition to tax credits for R&D, there are opportunities like “Patent Box” regimes in a number of jurisdictions designed to encourage R&D and innovation. However this landscape is complex and difficult to navigate, with government subsidies changing and sometimes drying up altogether. FTI Consulting has accounting and tax professionals who are well versed in the changing R&D tax environment. We advise our clients on current tax conditions and the future planned changes, giving them the insight to make intelligent R&D decisions and investments.
Transfer Pricing & Tax Valuations
Transactions should take place at an arm’s length price because, otherwise, the parties, acting together, are in a position to use pricing to manipulate where profits are realised. The natural inclination is to realise profits in lower tax jurisdictions. FTI Consulting has a team of economists and tax specialists that has extensive experience in all aspects of transfer pricing and tax valuations, from tax authority audits to comprehensive transfer pricing studies supporting complex transactions and Advance Pricing Agreements.
Tax Policy & Strategic Communication to Stakeholders
Tax policy and tax strategy have become much more of a boardroom and a stakeholder issue in recent years. Approaches to tax management that were accepted as commonplace in the past are now being seen through a different lens and are having a material impact upon our clients’ businesses. With more stakeholders scrutinising tax strategy and tax policy, both within and outside the corporate world, FTI Consulting Tax and Strategic Communications professionals now work closely together. Our collaboration supports boardroom understanding and generates targeted communications efforts that ensure that stakeholders (including tax policymakers) know and understand our client’s position.