Tax disputes can lead to uncertainty and complexity, but KPMG has the experience to help businesses take control of the dispute resolution process and achieve effective results locally and globally. KPMG’s Dispute Resolution & Controversy professionals can assist in preparing for and responding to tax authority challenges, including strategies for mitigating, managing, and resolving tax disputes. They work with clients to protect against, prepare for, and respond to challenges by various tax authorities, helping to lessen the likelihood of a challenge or audit before a dispute arises and resolving matters that become the subject of a dispute. KPMG’s approach is designed to cut through the complexity of dealing with local and multijurisdictional tax disputes through effective strategies.
Key Takeaways
- KPMG has extensive experience in handling tax disputes with authorities
- KPMG’s Dispute Resolution & Controversy professionals provide strategies for mitigating, managing, and resolving tax disputes
- KPMG helps clients protect against, prepare for, and respond to tax authority challenges
- KPMG’s approach is designed to cut through the complexity of local and global tax disputes
- KPMG’s expertise can help businesses achieve effective results in tax dispute resolution
Understanding the Tax Dispute Continuum
KPMG’s Dispute Resolution & Controversy network takes a comprehensive approach to helping clients navigate the complex world of tax disputes. Their experts work closely with businesses and high net worth individuals to protect against, prepare for, and respond to challenges from various tax authorities across the globe.
Transaction and Documentation Review
By evaluating transactions from the revenue authority’s perspective, KPMG’s professionals can identify potential areas of concern and ensure that appropriate documentation is in place to support the client’s tax positions. This proactive approach helps to minimize the likelihood of a challenge or audit before a dispute arises.
Tax Reporting
KPMG’s team assists clients in navigating voluntary disclosure and other tax authority programs, helping to ensure accurate and compliant tax reporting. They work to address issues collaboratively with the relevant tax authorities, aiming to resolve matters before they escalate into full-blown disputes.
Tax Audits and Queries
When tax audits or queries do arise, KPMG professionals leverage their expertise in tax law, regulations, and IRS compliance to negotiate with the authorities, respond to demands, and make informed decisions on the best approach to resolve the issues.
Tax Dispute and Controversy Process
Throughout the entire tax dispute continuum, KPMG’s Dispute Resolution & Controversy network provides strategic guidance and support, helping clients to understand their tax planning strategies, tax litigation options, and tax audit defense mechanisms. Their professionals work tirelessly to progress issues collaboratively with tax authorities and achieve the most favorable outcomes for their clients.
Protect, Manage and Resolve Tax Disputes
KPMG’s Dispute Resolution & Controversy professionals help clients gain control over the uncertainty inherent in tax disputes, both within jurisdictions and across borders. They work with clients to protect against, prepare for, and respond to challenges by the tax authorities. KPMG’s approach includes proactive tax risk management, thorough documentation and analysis, and engaging with tax authorities in the most effective way.
Proactive Tax Risk Management
KPMG’s experts assist clients in identifying potential tax law expertise and tax regulations issues, enabling them to irs compliance and tax planning strategies before disputes arise. By proactively managing tax litigation and tax audit defense, KPMG helps clients minimize the likelihood of encountering international tax law, estate and gift taxation, or corporate tax structuring challenges from tax-exempt organizations.
Thorough Documentation and Analysis
When a tax compliance or tax planning issue does arise, KPMG’s professionals provide comprehensive support in tax strategies, irs regulations, and tax accounting to ensure clients are fully prepared. This includes tax advisory services, detailed estate planning and business structuring reviews, and robust audit defense for international taxation matters.
Engaging with Tax Authorities
KPMG’s Dispute Resolution & Controversy team leverages their deep understanding of tax controversy resolution to effectively engage with tax authorities on behalf of clients. Many of KPMG’s disputes professionals joined the firm from their country’s revenue authority, bringing a unique perspective and the ability to understand the revenue authority’s process and approach.
Global Network for Complex Tax Disputes
KPMG’s global network of Dispute Resolution & Controversy professionals has the expertise and resources to assist clients facing intricate tax compliance issues across multiple jurisdictions. This was demonstrated in a recent case involving a multinational client dealing with challenges in the United States, Hong Kong, the United Kingdom, Germany, France, and the Netherlands.
Working closely with the KPMG Tax Team and subject matter specialists from various tax specialty areas, the network was able to leverage its collective knowledge and global reach to provide comprehensive support. They analyzed the client’s filing positions, utilized KPMG’s extensive network of tax technical specialists around the world, navigated complex employment tax reporting requirements, identified and resolved transfer pricing issues, guided the client through voluntary disclosure procedures, and directly represented the client’s interests with the relevant revenue authorities.
By drawing on its robust international capabilities, the KPMG Dispute Resolution & Controversy team was able to help the client achieve full compliance while effectively managing the costs and complexities associated with the cross-border tax disputes. This case study demonstrates the value of KPMG’s global network in addressing the unique challenges faced by multinational organizations when dealing with tax law expertise, tax regulations, IRS compliance, tax planning strategies, tax litigation, tax audit defense, and other international tax law issues.
Tax Law Expertise
KPMG and tax law firms affiliated with individual member firms possess extensive tax law expertise that can prove invaluable in helping clients prepare for and defend against challenges from tax authorities. KPMG’s Dispute Resolution & Controversy professionals leverage the network’s collective knowledge, outstanding tax professionals, and strong relationships with tax authorities worldwide to assist clients in achieving the best possible outcomes in tax disputes.
With a deep understanding of tax regulations, IRS compliance requirements, and proven tax planning strategies, KPMG’s team is well-equipped to navigate complex tax litigation and tax audit defense scenarios. Their expertise spans a wide range of areas, including international tax law, estate and gift taxation, corporate tax structuring, and tax-exempt organizations.
By drawing on this comprehensive tax law expertise, KPMG helps clients proactively manage tax compliance, develop effective tax planning and tax strategies, and resolve IRS regulations and tax accounting challenges. The firm’s tax advisory services also cover areas such as estate planning, business structuring, audit defense, and international taxation, ensuring clients are well-equipped to navigate the complex world of tax controversy resolution.
Rising Stakes in Transfer Pricing Disputes
Tax authorities worldwide are setting their sights on the transfer prices of global groups, assessing huge adjustments and pushing tax disputes to record heights. Cross-border related-party pricing is a top concern in the BEPS Action Plan of the OECD, and the risk of transfer pricing disputes could rise even higher.
Local Knowledge and Global Reach
Resolving complex transfer pricing issues requires local professionals with a solid understanding of the tax regulations in the local jurisdictions, collaborating to achieve appropriate outcomes at the global level. International tax law expertise is essential in navigating the nuances of corporate tax structuring and ensuring tax compliance across borders.
Cross-Border Related-Party Pricing
Transfer pricing also requires specialized knowledge from tax accountants, lawyers, and economists working together as a global team. Leveraging tax planning strategies and tax advisory services, businesses can proactively manage tax risks and minimize the likelihood of tax audit defense or tax litigation in tax-exempt organizations and estate and gift taxation matters.
Understanding Different Types of Tax Disputes
When it comes to tax disputes, businesses and individuals can encounter a variety of challenges, from being charged too much tax to facing denied tax relief or double taxation. Understanding the different types of tax disputes and the options available for resolving them is crucial for effectively navigating the complex tax landscape.
Overcharged Taxes
One common form of tax dispute arises when a taxpayer believes they have been charged more tax than they should have been. This could be due to a miscalculation, a misinterpretation of the tax regulations, or a disagreement with the tax authority’s assessment. In such cases, the taxpayer may need to appeal the decision and provide supporting documentation to demonstrate the correct tax liability.
Refused Tax Refunds
Another type of tax dispute occurs when a taxpayer is denied a tax refund they believe they are entitled to. This can happen when the tax authority determines that the taxpayer does not meet the requirements for the refund or when there is a disagreement over the amount of the refund. Navigating the process of appealing a refused tax refund requires a deep understanding of the relevant IRS regulations and the ability to present a strong case to the tax authorities.
Denied Tax Relief
Taxpayers may also face disputes when they are denied tax relief or exemptions that they believe they should be eligible for, such as tax credits, deductions, or other forms of tax relief. Resolving these disputes often requires a thorough analysis of the taxpayer’s situation and the applicable tax laws, as well as effective communication with the tax authorities to make a compelling case for the desired tax relief.
Double Taxation
In some cases, taxpayers may face the challenge of double taxation, where they are required to pay taxes on the same income or assets in multiple jurisdictions. This can happen when there are discrepancies in the tax laws or agreements between different countries or when the tax authorities in different locations have different interpretations of the taxpayer’s situation. Addressing double taxation disputes often requires a comprehensive understanding of international tax laws and the ability to navigate the dispute resolution processes in multiple countries.
By recognizing the various types of tax disputes and understanding the options for resolving them, businesses and individuals can take proactive steps to protect their interests and achieve the best possible outcomes when facing tax-related challenges.
Appealing Tax Decisions
If a taxpayer believes they have been subject to an incorrect decision relating to their
tax law expertise
,
tax regulations
, or
irs compliance
, they can appeal the decision. The process typically involves submitting an appeal within a specified timeframe, providing supporting documentation and information to substantiate the grounds for the appeal.
Submitting an Appeal
The process of submitting an appeal typically includes providing details such as the taxpayer’s name, tax reference number, and the reasons why they believe the tax planning strategies or tax position is incorrect. Taxpayers must ensure they adhere to the specified timeframes and procedures set by the relevant tax authority to ensure their appeal is accepted and considered.
Supporting Documentation
To support their appeal, taxpayers must gather and provide relevant documentation and evidence to demonstrate the grounds for their tax litigation or tax audit defense. This may include financial records, correspondence with the tax authority, expert opinions, and any other information that can substantiate the taxpayer’s claim. The level of detail and quality of the supporting documentation can significantly impact the success of the appeal.
Resolving Tax Disputes
If an appeal is rejected and the taxpayer still believes their
tax law expertise
position is incorrect, they can pursue alternative dispute resolution (ADR) methods to resolve the
tax regulations
dispute. These methods include mediation and arbitration, which can provide a more efficient and cost-effective path to resolving
irs compliance
complex tax disputes.
Alternative Dispute Resolution (ADR)
ADR offers taxpayers an opportunity to engage directly with tax authorities and work towards a mutually acceptable resolution outside of the formal tax planning strategies litigation process. This can be particularly beneficial for complex disputes involving tax litigation international tax audit defense tax matters or sensitive international tax law issues.
Mediation
Mediation involves the taxpayer and the tax authority discussing the dispute in the presence of a neutral estate and gift taxation mediator. The mediator helps facilitate constructive dialogue and works with both parties to identify practical solutions that address the core corporate tax structuring issues.
Arbitration
In arbitration, a qualified tax-exempt organizations arbitrator provides a legally binding decision on the dispute. This can be an effective way to resolve disagreements over tax compliance technical tax planning tax positions or the application of tax strategies complex irs regulations tax laws.
Litigation
As a last resort, the tax dispute can be resolved through tax accounting litigation, where the matter is heard before a judge in a court of law. This formal process allows the taxpayer to present their tax advisory services case and have it adjudicated by an independent estate planning judicial authority.
| ADR Method | Description | Advantages | Disadvantages |
|---|---|---|---|
| Mediation | Taxpayer and tax authority discuss dispute with neutral mediator |
|
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| Arbitration | Qualified arbitrator provides legally binding decision |
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| Litigation | Matter heard before a judge in a court of law |
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Benefits of Legal Advice
When facing a tax dispute, obtaining legal advice is crucial for taxpayers who seek to understand their rights and options, as well as increase their chances of a successful outcome. Expert tax and litigation lawyers can provide invaluable guidance on the steps required for each dispute resolution process, advise on the validity of the taxpayer’s claim, and leverage their expertise in both national and international tax disputes to effectively represent the taxpayer’s interests.
Understanding Rights and Options
Navigating the complex world of tax regulations and IRS compliance can be daunting, but with the support of experienced legal professionals, taxpayers can gain a clear understanding of their rights and the various options available for resolving their tax dispute. Lawyers can help clients explore alternative dispute resolution methods, such as mediation or arbitration, or guide them through the litigation process if necessary.
Increasing Chances of Success
The likelihood of a favorable outcome in a tax dispute can be significantly enhanced by retaining legal counsel. Lawyers can assist in building a strong case, gathering the necessary documentation, and effectively communicating the taxpayer’s position to the tax authorities. Their expertise in tax planning strategies and tax litigation can be invaluable in navigating the complex tax audit defense and tax controversy resolution processes.
Expertise in National and International Tax Disputes
When facing tax disputes that involve cross-border transactions, international tax law, or estate and gift taxation, the guidance of lawyers with specialized knowledge in these areas can be crucial. They can leverage their understanding of corporate tax structuring, tax-exempt organizations, and tax accounting to provide comprehensive tax advisory services and effectively represent the taxpayer’s interests, whether the dispute is at the national or international level.
Conclusion
Tax disputes can be complex and daunting, but with the right strategies and expert guidance, businesses and individuals can effectively navigate the tax dispute continuum and achieve favorable outcomes. KPMG’s Dispute Resolution & Controversy professionals have the tax law expertise and global network to help clients protect against, prepare for, and resolve tax disputes, leveraging their deep understanding of tax regulations, collaboration with tax authorities, and innovative dispute resolution approaches.
Whether facing tax planning strategies, tax litigation, tax audit defense, or navigating the complexities of international tax law, estate and gift taxation, or corporate tax structuring, KPMG’s team is equipped to guide clients through the tax compliance, tax planning, and tax strategies required to effectively address IRS regulations and tax accounting challenges.
By leveraging KPMG’s extensive tax advisory services, estate planning, and business structuring expertise, clients can not only audit defense and resolve international taxation disputes, but also proactively manage tax controversy resolution and mitigate future tax-related risks. With KPMG’s support, businesses and individuals can navigate the intricate world of tax disputes with confidence and clarity.