How PHS managed to transform liabilities into assets during financial crisis for a well-respected company.
The facts
Beginning of 2014, a limited liability company was facing tremendous cash flow problems along with a huge tax bill. It was impossible for the company to get a new loan in order to pay-off its existing debts, even its running operations.
Everything was in a ‘mess’; social insurance and payroll taxes were not calculated correctly, no corporate tax returns were filed on time, no corporate annual returns were also filed at all at the Registrar of Companies. As a result of all these, the company were receiving notices from both Director of Tax, penalizing the company and warning them that will take them to court and Registrar of Companies, and the last one warning them that it would be deregistered from the Registrar. Additionally, the company received notices about payments due concerning tax liabilities including penalties and interest.
Finally, the Board of Directors decided to give an end to this mess and they have turned to PHS for help.
The PHS approach
The first step PHS tax specialists did, was simply to request statements from Director of Taxes in relation to the last 6 years of operations. Going through the statements, PHS managed to reconcile the tax payments made along with the actual tax payments due and vice versa. Any estimated annual tax liabilities calculated by Director of Taxes were reversed and the correct tax liabilities/refunds were submitted to the Director of Taxes. Various meetings held between the PHS head of tax and the tax inspector presenting and analysing the yearly tax status of the company.
The outcome
In the end, PHS managed to obtain more than €200.000 in much-needed tax refunds for the company and turned tax liability as an asset.
The CFO was shocked with the quality of the service, the methodology used and the final result, but at the same time was extremely happy seeing his company move forward.”
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If you want to work with professionals who provide exceptional quality standards of services in Cyprus, the simplest way is to fill in the contact form below.
We will take you through a step by step process from A to Z in creating the perfect business structure in Cyprus.
Can’t wait any longer? Become even more successful by working with accountants you can count on and be among the thousands business that already did.