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 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.
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.
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.