In SOLVEO we see how important it is to integrate advisory and legal services in supporting modern business. In order to secure the correct implementation of the objectives of the decisions taken, it is important both to properly assess the tax implications of a given operation, as well as to secure it from the legal side. Therefore, within SOLVEO we bring together not only tax experts, but also experienced specialists in the field of law (in particular civil law and company law), to provide our clients with efficient and effective support in the current business activity as well as during its restructuring.
Legal services for companies
SOLVEO offers, among other, services in the field of company formation and transformation. We are aware that both the registration of the company and the subsequent amendment of the agreement require preparation of documentation and fulfillment of many formal obligations. The support of experts experienced in the implementation of the service of setting up companies guarantees certainty and professionalism in the conducted case.
Thanks to the advice offered by SOLVEO, we will not only select the optimal legal form for our clients to implement their business plans, but also prepare comprehensive documentation and submit it to the relevant authorities.
The scope of our services includes, among others:
- advice on starting a business in Poland,
- creation and liquidation of companies, branches and representative offices of foreign entrepreneurs,
- consulting on the current functioning of companies and their bodies,
- preparation and implementation of corporate governance principles,
- conducting corporate audits,
- preparing and negotiating trade agreements.
Mergers, acquisitions and other restructuring
M&A transactions are characterized by a high degree of complication and complexity of processes.
SOLVEO offers advice on mergers and acquisitions (both on the buyer’s and seller’s side). We provide comprehensive legal services in mergers and acquisitions and business transformation. High standard of services is a guarantee of comprehensive service at all stages of transactions. As part of mergers and acquisitions we offer financial, accounting and legal services, we verify the Client in terms of all legal requirements and represent the Client in court and administrative proceedings.
We offer you:
- consulting in the processes of purchasing entire companies and their organized parts,
- advice on mergers, restructurings and acquisitions,
- advising on the sale of the company or part of it,
- comprehensive legal services in transactions of purchase and sale of shares or stocks,
- verification of correctness of connections in relation to accounting,
- support in negotiations and transactions.
In SOLVEO we want to know our clients’ needs to the best of our ability, so that when drawing up trade agreements we can ensure that they are as well adapted as possible to the individual needs of the parties, and secure our clients’ current and future interests. We ensure proper, partnership cooperation of all parties involved and while working on the formal aspects of planned activities we use the support of SOLVEO tax advisors on an ongoing basis.
Contracts drawn up by SOLVEO are characterized by the highest diligence and reliability, while maintaining full compliance with Polish law. We also offer preparation, opinion and negotiation of all contracts that our clients need. In each task, we carefully consider the legal and tax consequences of the agreements and inform the Client about it on an ongoing basis.
Responsibility of board members
The violations found in the actions taken by the company or its employees often result in the risk of individual liability of management board members as persons responsible for the operation of the entity. The liability of members of company bodies may take various forms, including civil, administrative and criminal liability. In accordance with the rights resulting from the Code of Commercial Companies and Partnerships, the creditors, after stating that the enforcement proceedings against the company are ineffective, undertake actions aimed at enforcing the outstanding liabilities from the board members.
Our specialized team represents our clients in negotiations and litigation related to these issues. In this area, we also offer an overview of internal tax procedures and a specification of the main risks of individual liability. SOLVEO also deals with the preparation of internal procedures, the task of which is to limit individual liability of management board members and to create a defense strategy in the course of possible criminal proceedings.
Accounting & Payroll
Outsourcing of processes supporting operational activities is one of the solutions that is gaining more and more recognition among owners and directors of companies regardless of the industry in which they operate.
Our experience shows that in the era of galloping legislative changes and increasingly demanding situation on the labor market, entrusting accounting or HR and payroll processes to external specialists is increasingly justified. By assuming responsibility for current and routine duties, we provide our clients with an additional resource of time and quality financial information that they can use while focusing on their core business.
Outsourcing of accounting
Outsourcing of accounting consists in commissioning an external entity to provide comprehensive accounting services. We are professionals and have many years of experience, so our clients who entrust us, can focus on the main objectives and tasks of their companies, keeping the possibility to view online accounting data, statements and reports.
When performing accounting outsourcing, we approach the Client individually and, depending on the decision and needs, we adapt our work to the Client’s systems or we work on our own.
Within the scope of our services there is:
- keeping books of account in accordance with the provisions of the Accounting Act and international standards,
- comprehensive accounting services for companies of all sizes and activities,
- assistance and support in contacts with tax offices and participation in controls,
- monthly and quarterly reviews of accounting and tax books,
- preparation of separate and consolidated statements,
- technical support in preparing consolidation,
- preparation of monthly and annual declarations (VAT, CIT, PIT, social security),
- preparing reports for accounting and management purposes.
HR and payroll service
The SOLVEO team consists of people with many years of experience and high competence in the field of HR and payroll, so regardless of the type of business or size of the company we are able to provide high level HR and payroll outsourcing services. This area requires a great attention, exceptional care and constant acquisition of detailed information in connection with changing legal requirements as well as knowledge of current regulations related to data confidentiality.
In the scope of our services is:
- registration and contacts with tax offices and the Social Insurance Institution,
- calculation of salaries and creation of payrolls for various forms of employment, including for foreigners,
- calculation of social and health insurance contributions,
- settlement of personal income tax,
- preparation of tax and insurance declarations,
- preparation of full personnel documentation required by the Labor Code,
- developing regulations related to the employment contract, including work regulations, salaries and social benefits funds,
- staff audits.
In SOLVEO we provide services in the field of auditing of the financial statements (financial audit), auditing consolidation packages and other activities reserved for chartered accountants.
In our activities we approach the needs of our customers with understanding, looking for solutions that will increase the efficiency of the companies cooperating with us. While conducting the work entrusted to us, we ensure timely completion of the tasks contracted to us, and the way of conducting the work we consult individually with each Client.
Audit of the financial statements
Within SOLVEO we also function as an entity authorized to audit the financial statements.
The audits of the financial statements are prepared in accordance with the Polish accounting principles and in accordance with the International IAS / IFRS.
The purpose of the audit of the financial statements is to verify the correctness of the prepared financial statements, as well as to evaluate the accounting system.
In carrying out the work entrusted to us, we use specialized skills, proven techniques and methods of research and gained industry experience. This service includes:
- audit of the balance sheet and review of individual financial statements,
- audit of the balance sheet and review of consolidated financial statements,
- compilation – audit of financial statements (or elements thereof).
The result of the audit of the financial statement is an opinion and a report on the activities fulfilled.
The financial audit carried out by SOLVEO determines the correctness of operation of the financial and accounting system, internal control system, analyzes fundamental problems, as well as indicates areas of significant risks.
Examination of consolidation packages
The consolidation package is an extension to the financial statements, it should indicate data concerning transactions with all subordinated entities covered by the consolidated financial statements (including statements of purchases and sales of fixed and current assets, revenues and costs, mutual receivables and liabilities).
The purpose of the services provided is to make the financial data contained in the consolidation packages credible.
We provide services in the field:
- confirming the correctness of consolidation packages and group “reports”,
- assurance and related services including, inter alia, services to an agreed scope (agreed-upon procedures).
We offer various types of expertises, analyses, consultations, which may concern all aspects related to accounting and functioning of accounting systems.
When preparing an opinion, we analyze the issues of each client individually in order to identify the most appropriate reporting solutions for them.
We develop a number of guidelines in the field of accounting and reporting.
Our aim is to provide ongoing support to our clients in all activities related to the company’s accounting and reporting, and to respond to any issues and concerns that arise in this area.
Other attestation services
Attestation services are dedicated to entities that want to authenticate or confirm financial and non-financial information, systems, processes, as well as calculations made.
This service supports your development and increases the efficiency and security of your business transactions. The agreed scope of work is completely individualised for each Client and is based on active cooperation.
By using the attestation services you have the opportunity to quickly obtain confirmation of the correctness of the assumptions and calculations made.
All activities are performed by a certified auditor with specialist knowledge and experience.
We also offer certification services reserved for statutory auditors in the Commercial Companies Code, i.e:
- examination of transformation plans, merger and division plans of commercial law companies,
- audit of reports of the founders of a joint-stock company concerning contributions in kind, property acquired before the registration of the company, valuation of contributions,
- to examine contributions in kind.
In SOLVEO we believe that the role of a tax advisor is not only to ensure the safety and efficiency of our clients activities, but also to stimulate positive changes in their organisations. This is why we offer our clients various customised forms of permanent support in the area of taxation.
The SOLVEO team is made up of people with extensive experience, gained both in leading consulting companies and in leadership positions in tax inspection authorities. Thanks to that, we can offer our customers our support based on the highest quality standards, delivered simultaneously in a very practical formula.
COVID-19 has an impact on the activities of many entities. Subsequent versions of ‘anti-crisis shields’ give taxpayers the opportunity to improve their financial liquidity using tax and social security instruments. However, the use of these instruments usually requires meeting certain conditions (both in advance and afterwards). Often, one also needs to prepare applications or other documents confirming the negative impact of COVID-19 on business.
In addition, entrepreneurs can also benefit from dedicated financial support under state funds (PFR and ARP). Despite the maximally simplified application process, traps and pitfalls are lurking in this area as well.
As part of our services, among others:
- we will prepare applications for deferred payment of taxes and social security contributions, distribution of payments into installments, cancellation of arrears;
- we will examine whether there are premises to take advantage of other preferences;
- we will help technically and analytically prepare the necessary forms, agreements;
- we will support in communication with the tax and social security authority, or other institution offering co-financing,
- we will help you get support from ARP or PFR regardless of the size of the entrepreneur (from micro to large).
Our clients have already obtained significant support from the sources indicated above – we are happy to help you joining their group.
Ongoing tax advisory
The current legal environment in the tax area is very dynamic. In response to such a challenge, we offer our Clients the possibility of constant access to the knowledge of our experts for the Management Boards and the financial departments of companies.
Long-term cooperation with a trusted advisor allows for the implementation of effective and safe tax strategies tailored to the specifics of the industry and the company. One of our primary objectives is to provide solutions addressing not only tax issues, but also any other business or reporting requirements and, where possible, changing into improvements in the company’s operations.
In a short period of time we can provide practical answers to any tax concerns that arise, for example in the accounting process, as well as provide support in the form of tax information at the stage of planning specific transactions, changes or other activities in the organization.
We provide current consultancy services in a variant adjusted to the needs and expectations of our clients in a formula:
- an open contract (without fixed liability amount) settled according to of actual working time (based on agreed hourly rate)
- a lump sum agreement with a fixed range of hours to be settled according to of actual working time,
- our proprietary ”SOLVEO Package”, which includes unlimited consultations integrated with other services to guarantee the highest level of security and tax efficiency.
As part of the current tax advisory services:
- we offer a wide range of tax advisory services, especially in the field of CIT, PIT and VAT,
- we provide both ongoing comprehensive tax advices as well as support in one-off situations,
- we offer advice and support in reporting tax schemes (MDR),
- we prepare requests for individual interpretations.
Support in tax disputes
Our unique mix of experience in conducting tax audits and disputes, from the perspective of both the professional advisor and the tax authority, allows us to select the strategies and means of conducting disputes in such a way as to increase the likelihood of defending the claims and positions presented by clients.
As a part of our service:
- we offer an extensive and comprehensive support both in the course of tax inspections, customs and fiscal controls, as well as tax and court proceedings (including for the individuals, i.e. owners and management boards),
- we act as a proxy in tax disputes – both at the administrative and judicial stage,
- we support clients in the course of the execution proceedings,
- we conduct tax overpayment proceedings,
- we advise on potential penal fiscal responsibility.
Reporting of tax schemes (MDR)
The rules on reporting of tax schemes show a high level of complexity but are also drafted in a general and inconsistent way.
Given the severity of the potential sanctions, both for lack of internal procedure for the reporting as well as possible errors / omissions in reporting, a current market practice indicates that it is recommended to implement a procedure addressing MDR obligations in most corporate entities.
The purpose of our support in preparing the MDR internal procedure is to provide our clients with a comprehensive internal document that will ensure the maximum possible level of security in the reporting of tax schemes.
What is important is that the procedure we are preparing – apart from the formal layer indicated in the Tax Ordinance – puts an equally strong emphasis on the operational layer, allowing it to be optimally integrated into the requirements and realities of a given organisation.
We take a comprehensive approach to the issue of reporting tax schemes and apart from implementing the internal procedure itself, we also offer ongoing advice and support in the area of tax scheme reporting (MDR).
Our previous practical experience in this area is additionally supported by participation of our members in a working group within the MDR Forum at the Polish Ministry of Finance.
Preparation for changes in WHT
According to the amended regulations, the taxpayer is obliged to remain due diligent when verifying the possibility of applying a reduced rate or a tax exemption.
A lack of appropriate activity on the part of the taxpayer in the field of withholding tax may lead to negative financial consequences. Therefore, it is particularly important to properly regulate the sequence of actions and people who are responsible for the individual steps, while at the same time selecting an appropriately calibrated package of verification activities.
Our experience shows that the entities which pay out receivables falling within the scope of WHT taxation should select appropriate measures to demonstrate due diligence.
The WHT Tax Due Diligence Procedure is an instruction manual which shows exactly how to demonstrate due diligence in foreign payments in order to ensure that withholding tax is correctly accounted for using exemptions and reduced rates and to avoid statutory sanctions.
Preparation for the changes in VAT
Both the past and the coming months bring many important changes in the provisions of the VAT Act. White list, split payment, SAF-T for VAT, VAT rate matrix, quick fix… Failure to comply with these regulations may result in severe sanctions and penal fiscal liability.
Adapting to changes in VAT is not only a technical and systemic problem. The content of the provisions leaves a lot of interpretation uncertainty.
We support our clients in solving substantive problems related to new VAT tax solutions, including, among others, the following
- we help to clarify interpretation doubts related to the white list (e.g. the concept of transactions, making payments to specific accounts, e.g. in foreign banks, foreign currency accounts, private accounts, virtual accounts, factoring transfers and many others),
- we protect against sanctions related to non-compliance with the provisions of the split payment mechanism (e.g. by deciding whether the sold/acquired goods/services are subject to mandatory split payment), we suggest what to do with a mixed invoice, currency invoice, how to safely offset split payment payments, what to do with payments to enforcement authorities, advance payments or correction invoices). We secure the responsibility of penal fiscal law with the preparation of tax opinions, statistical classification (including after the transition to CN codes) – application for binding rate information (WIS),
- we review the goods and services sold/acquired for the new VAT rate matrix, if we need to prepare applications for WIS,
- we help to clarify interpretation doubts about the new structure of SAF-T for VAT in order to avoid the “500 PLN for every mistake” sanction,
- we ensure the security of international trade settlements in the context of the quick fix – as discussed below.
Dedicated tax trainings
We know from our clients that despite wide offer, it is not easy to find valuable tax training on the market. The tax matter is inherently difficult, so it is also difficult to keep the audience’s attention for a long time. An idle lecture about tax theory and the provisions of a given law is not a recipe for success in this aera.
Some people say that a good recipe for tax training is 50% of the good atmosphere and 50% of the merit. We disagree with this view. Our training is 100% atmosphere and 100% merit-based, based on our practical experience.
Our trainings are practical in nature:
- of course, the starting point is the tax regulations or planned changes in them
- however, we always prepare for the participants a number of “real life” practical examples – for common reflection and solution; we encourage interaction with us, as well as between the participants themselves; from each subsequent training we also bring a number of experiences to make the next one even better,
- the training is dedicated to the accounting, financial and tax departments – but not only! The employees of other departments are welcome as well. Especially those who do not deal with taxes on a daily basis, but whose duties, sometimes completely unaware of them, have a great impact on tax settlements (e.g. purchasing, sales, logistics, warehousing, technology and other departments). We put emphasis on making the latter group of students aware of their role in tax processes,
- We provide training on all tax issues (VAT, CIT, PIT, MDR, WHT, TP, changes in regulations and others) – both general, introductory and dedicated training courses,
- We have a lot of experience and positive recommendations of the participants in the field of training. Apart from training for our clients, we also cooperate on an ongoing basis with external professional training institutions.
"Quick fix” and international trade
VAT settlements related to international trade are challenging for many taxpayers. Firstly, because the tax consequences of a transaction are often independent of the tax and accounting departments (and, for example, of the terms and conditions of supply established by the sales and logistics departments). Secondly, tax cooperation with foreign contractors often leaves a lot of confusion (e.g. they do not provide the required documents on time). Tax authorities also often control such transactions. Not without reason – VAT fraud is often linked to international trade.
The package of changes to the VAT on EU transactions (so-called “quick fix”), coming into force on 1 January 2020, was to facilitate these settlements. However, we already know that in practice it will be even more difficult than it used to be.
We offer a comprehensive support package for securing foreign goods and services transactions, including, among others:
- we identify transactions that may be affected by quick fix changes and implement a plan to adapt to these changes,
- we support identification and proper tax settlement within supply chains (both before and after quick fix),
- we prepare procedures for the accounting, logistics, purchasing and sales departments – so that everyone knows what aspects of international trade are tax liability,
- we train and raise awareness among employees,
- on issues of particular concern – we prepare requests for individual interpretations,
- what if the taxpayer does not meet the new requirements for two independent WDT documents? It’s not the end of the world, we can help with that too.
In recent years, the scope of documentation obligations imposed on entrepreneurs who make significant transactions with related parties has significantly increased.
Based on our extensive experience in this area, we support our customers throughout the entire process – from identifying their responsibilities, through preparing all elements of the required documentation, until to assisting them in fulfilling their reporting and information obligations.
As part of our support:
- we prepare transfer pricing documentation or also verify the existing one,
- we help to implement an appropriate transfer pricing policy between related parties,
- we conduct comparative analysis of the transaction,
- we effectively represent our clients in disputes with tax authorities on transfer pricing.
The purpose of our tax audits is to identify risk areas or inefficiencies in tax settlements.
The scope of work may include all tax settlements of a given entity or only those indicated by the Client (e.g. CIT or VAT).
Each time the result of our work is a report indicating the identified areas requiring attention and containing practical recommendations on actions to be taken to ensure the correctness or greater efficiency of tax settlements:
- the scope of the review may include income taxes (including withholding tax, transfer prices and zoning settlements), VAT, real estate tax and others,
- we offer both one-time and periodic tax reviews,
- in the course of the work we identify areas of potential irregularities taking into account the likelihood of their questioning by tax authorities,
- in addition, if irregularities are identified, we indicate solutions that minimize the risk of negative tax consequences, while making sure that the recommendations are of practical value and tailored to the specifics of the client’s business.
Mergers and acquisitions (M&A)
Tax risk is often one of the main areas that shape the conditions of transactions or restructuring processes. Well recognized allows to protect the buyer against the severe consequences of non-compliance. An appropriate tax structuring of the transaction allows both parties of the transaction to achieve their objectives in the most effective and safe way.
As part of our service:
- we offer ”due diligence” reviews,
- we assist in structuring transactions and their financing, with particular emphasis on tax issues,
- we provide ongoing advice on mergers, divisions, transformations and liquidations of companies, ensuring, among others, integration after a transaction or restructuring.
Research and development relief (R&D)
Current tax regulations still offer certain reliefs and preferences that entrepreneurs can use to improve the tax efficiency of their business.
One of the most attractive forms of support remains the research and development relief, under which taxpayers are given the opportunity to deduct costs related to innovative activity from the tax base twice.
Appropriate preparation and implementation of the R&D relief allows for safe reduction of tax liabilities and improvement of competitiveness of the business, therefore:
- we offer comprehensive advice on assessing the possibility of benefiting from the R&D relief within the framework of the conducted activity,
- we help to build and formalize an appropriate internal process to ensure the proper use of the deductions,
- we help to secure the adopted approach through tax opinions or individual interpretations.
Effective forms of remuneration
The employment contract, although the most commonly used in practice, does not always meet the requirements and expectations that professionals and managers communicate on the current labour market.
In order to ensure the competitiveness of an organisation, it is worth considering to extend the models and forms of cooperation offered. It often turns out that proper selection of the form of cooperation to the role in the organisation and the scope of services provided to it allows not only to meet the expectations of its key specialists, but also to ensure a higher level of cooperation effectiveness for both parties.
Therefore, as part of our support, we offer comprehensive assistance in the review and verification of the forms of cooperation.
The scope of our advice focuses on helping our clients to adapt their offer to the growing expectations of the best qualified experts and managers in the labour market by selecting well adapted and appropriately effective forms of cooperation for both sides.
In addition, where possible and justified, we help to design and implement remuneration systems based on increased tax deductible costs for the transfer of copyrights, which safely allows our clients to increase employee remuneration without additional expenditure on the payroll budget.
Growing due diligence requirements require businesses to put in place and apply the procedures to ensure that tax processes are properly conducted and documented.
We believe that the procedures developed with our support, in addition to the value of ensuring compliance and increasing the tax security of your organization, will also bring a significant operational value – where possible simplifying the administration of the tax process and ensuring its full transparency in terms of the tasks and roles performed by those involved.
The most common procedures we prepare are:
- operating procedures related to the tax process,
- a contractor verification procedure to reduce the risk of being involved in VAT fraudulent practices,
- procedure for managing the risk of liability for tax settlements,
- procedure for MDR obligations,
- procedures for specific obligations (e.g. TP documentation, withholding tax collection, documentation of cross-border transactions).
When we first ask our customers if they are dealing with excise duty – 90% of them say: NO.
However, it soon turns out that these entities i.e. use lubricants, purchase gas products in exemption or use contaminated alcohol as a solvent.
Failure to detect certain formal requirements may result in negative consequences. For example, one has to pay excise duty in the price of the purchased product – this is financial inefficiency. Sometimes it may also turn out that one has to pay the overdue excise duty and interest to the tax office. This is a tax and a penal fiscal risk.
Tax authorities are increasing their interest in excise duty. In addition, there have been a number of recent changes in the provisions.
We offer support in the identification of obligations related to excise taxation or other obligations related to the use of excise goods:
- we identify transactions related to excise goods and help to define taxpayers’ obligations in this area, and we also help to identify the obligations of taxpayers,
- we perform excise reviews and prepare tax procedures,
- we help you adapt to changes in excise duty and related regulations (e.g. SENT),
- we support you in meeting the criteria to benefit from the excise preference (exemption due to purpose, rate 0 PLN),
- we help to make safe use of excise duty exemptions (electricity, gas and coal products) and to reclaim excise duty (e.g. energy-intensive businesses).