Changing manufacturing processes, mergers, acquisitions, and divestitures make tax accuracy and compliance seemingly impossible – and certainly challenging for tax departments. The volatile economic environment also contributes to tax challenges. DMA’s tax technology industry expertise brings extreme value by minimizing tax and creating efficiency in tax administration and processes.
We have generated more than $2.5 billion in tax savings for manufacturers, including those in the following industries:
- Pharmaceuticals – more than $240 million
- Chemicals – more than $632 million
- Automotive – more than $200 million
- Paper & Pulp – more than $127 million
- Electronics/Electrical – more than $356 million
- Tire & Rubber – more than $76 million
A producer of oriented-strand-board (OSB) worked with DMA’s team of property tax experts to review their property tax liabilities at one of its largest US mills. The valuation and assessment challenges were complicated by having come through an unprecedented period of global capacity expansion, a recession, industry consolidation, and partial recovery; with the subject property being expanded and new capital investment deployed during this process. Through analysis of industry forces, historical performance, and future forecasts, DMA was able to assist this taxpayer in ensuring that the property tax assessments were fair and accurate. This required knowledgeable experts who were familiar with valuation theory and concepts, their application in state-specific assessment laws and regulations, and who could apply those to the specific property under review. The collaboration between the taxpayer and DMA’s experts was well rewarded, with approximately $2 million in tax savings to the client.
TRANSACTION TAX, PROPERTY TAX & STATE INCOME TAX COMPLIANCE
DMA has established a long-standing client relationship with a global 500 manufacturer of electrical/electronic controls. The client chose to outsource its tax compliance function due to having a lean tax department and to allow its staff to focus on other value-added tax initiatives. DMA quickly responded by becoming an extension of the client’s tax department. Using our best practice implementation processes, our tax professionals seamlessly integrated into the compliance function. We have delivered accurate and timely return preparation and bill payment along with notice management. With DMA assuming the compliance burden, the client has been able to focus on higher priority initiatives.
DMA represented a leading manufacturer of commercial trucks and achieved over $850,000 in tax reductions through obsolescence adjustments and reclassifications of assets for several of the company’s southeastern properties. Additionally, DMA reclassified one of its sites to a Research and Development facility – achieving significant tax reductions through the more favorable assessment ratios and the reporting cost basis than that of a manufacturer.