Post Tax Reform Compliance Health Check-up

Keep your tax compliance function healthy and up to date

 

 

 

 

 

A KPMG tax compliance check-up can help keep your tax compliance system healthy, up-to-date and able to meet tax reform and regulatory requirements. 

The recently enacted U.S. tax reform law [H.R. 1] made many far reaching changes that have a significant impact on businesses in terms of data gathering, reporting requirements and tax return filings. The tax law included several new compliance and reporting rules that particularly affect companies with cross border operations, or that engage in financial transactions with foreign entities.

A KPMG health check-up can help ensure that your organization is meeting post tax reform compliance requirements. 

 

Get the latest on U.S. tax reform

Ongoing insights from KPMG about the new law to help make staying abreast of developments easier.

The KPMG check-up process includes the following steps:

 
 

Step 1

Identify the areas where tax reform rules may impact your tax compliance strategy and systems.

 
 
 
 

Step 2

Evaluate the calculations needed to help satisfy new filing requirements.

 
 
 
 

Step 3

Identify the data needed to perform these calculations (from both internal sources and from external sources, such as joint venture partners, portfolio companies and investments).

 
 
 
 

Step 4

Assess which KPMG personnel and technical resources (technology, D&A software) are best suited for your company’s situation.

 
 
 
 

Step 5

Perform a gap analysis to help determine your company’s current compliance status and make recommendations where remediation may be required. 

 
 
 

 

The final step includes a follow up to help ensure that your company is—and remains—in compliance in a post-reform era.

 

A check-up can help address these potential tax issues:

 
 

Identifying deductions

Additional data gathering and reporting requirements must be met to claim business interest, net operating loss (NOL), travel and entertainment, and executive compensation deductions, and accelerated depreciation.
 
 
 
 
 
 
 
 

BEAT calculations

The BEAT is a tax on certain deductible payments made to foreign affiliates, such as interest, royalties, payments for services, and management fees. The BEAT may also come into play when depreciable or amortizable property is acquired from foreign affiliates.
 
 
 
 

Deductions from FDII

Deductions against certain income derived from financial transactions with foreign individuals or entities may be available.

 

 

 

 

 

 

 
 
 
 

GILTI calculations

Certain U.S. shareholders of controlled foreign corporations (CFC) must include GILTI in taxable income. But this amount may be offset by certain interest expenses.

 

 

 

 

 
 
 
 
 
 

State and local taxes

The tax reform law has varying impact upon state and local tax calculations and return filings (e.g., whether states follow the federal 100 percent bonus depreciation rules).

 

 

 

 

 
 

 

 

The path to compliance

 
 
 
 

 

 

KPMG works with our clients to find efficient approaches to address provisions of the tax reform law, including the new carried interest rules. We also help them perform transaction analysis and modeling that reflect the new limits on interest expense deductions, NOL, and executive compensation, as well as the new depreciation rules.

Then we conduct a gap analysis and due diligence planning so that our clients with foreign entities, who conduct business internationally, or receive income generated outside of the U.S. can comply with the new law’s international tax provisions.

We supplement our health check approach with industry-leading technology and innovation capabilities, which include intelligent automation and artificial intelligence software platforms that have been updated to account for tax reform’s additional reporting requirements.  Our International Tax Reform Analyzer factors in the potential impact that key international tax reform provisions will have on a client, and allows us to model and prioritize various planning scenarios.

 

 

 
 

 

For more information, please contact:

French Taylor

French Taylor

National Service Line Leader, Business Tax, KPMG US

+1 214-840-4148

 

 

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