Client case study Manufacturing

How Leyton helped a client recover $49 600 for 4 years.

Josée Croisetère – Admin Assistant

Our sales tax recovery mandate with Leyton has been valuable and we acquired a better understanding of the recovery process through their methodology.

Challenge

How Leyton helped a client recover $49 600 for 4 years.

Huge procurement costs

Our client is an industry-leading provider of aluminum products and services in North America. It offers industry-leading capabilities customized to fit a customer’s supply chain needs.

The client has huge procurement costs given its strong presence in heavy industry. Our business development team reached out to the client explaining the sales tax review practice and how it can add cash value to the company especially in the pandemic times.

The review was designed to study and analyze the procurement from a sales tax perspective and ensure there are no tax credit leakages. The idea was an instant hit with the client. Leyton won the mandate to conduct a sales tax review for 4 years.

Solution

Leyton requested for routine information from a client like accounts payable data and tax ledgers.

Analyzing the data

Through robust checks and in-depth analytics coupled with sales tax law application, we provided the client with a list of sample invoices we need for review.

The invoices were in paper format and required on-site access to go through the invoices. Post sharing of a list of invoices required for review, we planned on-site visits in consultation with the client.

The client provided access to the documents room where all invoices for all years were stored. Leyton consulting team assigned on the client pulled up all the requisite invoices and scanned them for records.

During the review, it was observed that the client provides mileage reimbursement to its employees on which input tax credit was not being availed. Further, there were cases of manual accounting error which were identified during in-depth line-level checks.

Benefits

Thanks to accounting manual errors, the client was extremely happy to see the amount of the recovery.

Receiving the recovery

Considering mileage reimbursement/ allowance is a recurring monthly number, the quantum of tax credits summed up over $40,000 and a few thousand tax recovery was done from accounting manual errors.

In total, the tax recovery was nearly $50,000.

Related Case Studies