A client approached CPV Audit due to an overstated tax liability report submitted by his prior tax advisor.
The company was providing a software programs for royalties and license fees, allowing its clients to legally and efficiently use their products. Further examination of the client's documentation revealed that its products were subject to the intellectual property tax regime, which in the case of the client allows for an approximately 80% reduction of the taxable profits derived from the company's operations. Apparently, the prior tax advisor didn't reach this conclusion and, instead of implementing the above regulation, treated the business as taxable under the standard tax regulations, resulting in a client's high tax liability.
