Tax reporting and strategy: Managing tax in a dynamic and digital world

Tax authorities and other stakeholders expect Tax functions to be able to demonstrate, with evidence, that they have operated in an effective and efficient way. They must be able to show, often via a formalised tax control framework and testing programme, that tax risk is mitigated to an acceptable level and tax opportunities have been taken in line with the organisation’s overall attitude to reputational and compliance risk.

Increasingly managing tax is not a purely technical challenge and the skills required also include technology awareness, project management, leadership, and communication with the wider business in a way that they understand.

Organisations have to be confident that they are effectively managing tax in a way that delivers the overall business strategy.

We can assist you in understanding the tax implications associated with transactions by assessing the tax liabilities of your organisation as part of our accounting services and audit services.

A key challenge for companies in the current environment is to consider how best to respond to a landscape which continues to evolve. Increased attention from stakeholders around tax is driven by a number of factors including media headlines, pressure from campaign groups and the public, and changes in regulation (e.g. public tax strategy and country-by-country reporting). Some companies are adopting a reactive approach while others are being more strategic, considering transparency, to whom and for what purpose.

We can help you to develop your thinking in this area.

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We can assist you to understand your organisation’s challenges, goals and needs so as to:

• Meet the challenges of complex multi-tax reporting and compliance obligations

• Design and execute the right tax and tax technology strategies to manage tax risks in a rapidly changing and increasingly transparent global environment

• Take full advantage of the opportunities presented by a technology and data enabled world

In today’s challenging business environment, management needs to focus on driving business growth. However, critical management time is often allocated to handling complex local or multi-territory demands across the finance function, especially with regards to the provision of accounting services. We are here to support you, focused on what’s important for your business.

Our team of accounting experts is ready to seamlessly take on the role of your finance function. We offer a comprehensive solution for companies irrespective of size, industry and size of operations, wishing to outsource part of the whole of their finance/accounting functions. 

For all organisations that need high quality accounting advice, we have the breadth and depth of knowledge and technical expertise to help. PwC provides accounting technical advice, support tools, guidance and training which will help you to improve the quality of your financial reporting.

Potential issues 

• You are incorporating a new entity in Cyprus and you need our support to seamlessly set-up and operate your finance function.

• You want to reassign resources to concentrate on your core business activity.

• You lack of resources due to recruitment freezes or long term leave etc.

• You do not have the technical skill in-house to prepare statutory accounts in line with IFRS and Company Law requirements

• You are missing statutory filing deadlines and incurring penalties.

How can we help?

We can help you across a broad range of finance function and accounting services, such as:

• Accounting function: Providing you with a complete hassle-free finance function outsourcing for your entity from bank reconciliations to management reports, to liaising with auditors and preparing financial reports for management meetings.

• Secondments: Secondment of our staff to your office to support you in the interim. Our team has considerable accounting experience and working with entities operating across different industries.

• Support your in-house finance function: helping you improve the quality of your financial reporting by developing the knowledge and expertise of your in-house finance function.

• Financial Statements: Assisting with the preparation of your statutory financial statements (in accordance with IFRS) to ensure they are prepared in advance of filing deadlines and are available for management.

• Tax Compliance: Assistance with on-going indirect tax compliance (e.g. assistance with the preparation of quarterly VAT returns) and statistical reporting (e.g. VIES, INTRSTAT).

• Management Information: Present your Company’s financial performance in a complete and comprehensive manner, focusing on what is important for the growth and sustainability of your business

• Keeping you up-to-date: Updates on developments on IFRS financial reporting and other new accounting standards.

Our value proposition

Specialist industry knowledge - Our unrivalled range of specialist industry knowledge provides comfort that all day-to-day to complex transactions are accounted for correctly;

Tailor made solutions - Our team can design and document controls and procedures as well as compile finance procedure manuals to meet your individual business needs;

Experienced resources - We provide accounting specialists to work at your premise when you have an urgent need for financial and accounting support;

By leveraging PwC's specialised accounting experts, your company may achieve better control over its accounting and tax reporting function, including:

• improved accuracy and timeliness in the preparation of your accounting records;

• improved quality of management information;

• increased collaboration with your internal and external tax advisors;

• improved processes and efficiency;

• improved controls and documentation (i.e. mitigation of risk of internal control deficiencies)

In an ever increasing complex environment in which Provident Funds operate with a view of increasing returns to members whilst managing the risk associated with such investments, PwC has the unique position to assist Provident Funds safeguard the financial compliance.

Potential issues

• You are proceeding with the incorporation of a new Provident Fund and need our support to seamlessly draft the regulations of the Provident Fund and facilitate its registration with the Registrar of Occupational Retirement Benefit Funds;

• You want to outsource the accounting process of your Provident Fund and enhance the quality and timeliness of financial and management information packages;

• You do not have the technical skill in-house to prepare statutory accounts in line with IFRS and applicable legislation requirements’

• You are missing statutory filing deadlines and expose members of the Administrative Committee to court proceedings;

• You need some support in effectively managing Administrative Committee meetings and safeguarding the Provident Fund’s compliance with applicable legislations;

• You are looking into embedding some best practices in the overall governance of your Provident Fund

How can we help?

We can help you across a broad range of Provident Fund accounting and governance services, such as:

• Accounting and Administration function: Providing you with a complete hassle-free finance function outsourcing for your Provident Fund from bank reconciliations to management reports, to liaising with external investment managers and auditors, preparing financial reports for management meetings and arranging periodic distribution calculations to members and circulating Member Statements

• Support your in-house finance function: helping you improve the quality of the Provident Fund’s financial reporting by developing the knowledge and expertise of your in-house finance function;

• Financial Statements: Assisting with the preparation of the Fund’s statutory financial statements (in accordance with IFRS) to ensure they are prepared in advance of filing deadlines and are available for management.

• Management Information: Present the Provident Fund’s financial performance in a complete and comprehensive manner, focusing on what is important for the maximization and sustainability of members’ returns

• Assistance to the Administrative Committee: Assisting the Fund’s Administrative Committee in safeguarding its compliance with applicable Provident Fund legislation and embedding best practices in the governance and financial management of the Fund’s assets.

We can provide full assistance and support with the registration of entities both in Cyprus and in other jurisdictions, such as:

• Companies Limited by shares

• Companies Limited by guarantee

• European Companies

• Branches of Overseas companies

• Partnerships

• Business/Trade Names

We can assist an entity with its ongoing statutory compliance obligations:

• The convening and preparation of minutes for Annual General Meetings
• The preparation and submission with the Registrar of Companies of Annual Returns accompanied by Financial Statements
• The payment of Annual Levy

We can also assist with the maintaining and safekeeping of statutory records and registers of the company as prescribed by the relevant legislation.

We can further carry out health-checks of the current compliance status of companies and perform remedial work required to bring compliance, corporate data, statutory records and filings up to date.

We can provide assistance on handling day-to-day secretarial matters, such as:

• Drafting and/ or keeping of board minutes
• Issuing of powers of attorney
• Convening Extraordinary General Meetings

We can assist with the implementation of all changes affecting a company including, but not limited to:

• Change of company officers

• Change in registered office

• Change in company name

• Change in company domicile (incoming redomiciliation of companies to Cyprus)

• Changes in share capital  (e.g. increase of share capital / reduction of share capital / allotment of shares / issue of bonus shares / transfer of shares/ creation of new classes of shares)

• Amendment of Articles of Association 

  In effecting the above, we carry out the preparation of all necessary resolutions, forms and other documents, taking into account the specific requirements of each company involved, and, additionally file all necessary returns at the Registrar of Companies for all of the above changes.