We are delighted to feature Christoph Schmidl, Partner and Head of Accounting & Payroll at Grant Thornton Austria, in this year’s Finance Monthly Tax Awards. Christoph has been recognized as the Business Tax Advisor of the Year 2024 for his outstanding contributions to the field of tax consulting. With over 15 years of experience, Christoph has developed a deep expertise in international tax issues, expatriate tax services, VAT, and more. His journey from studying Business Administration at Vienna University of Economics and Business to becoming a partner at one of Austria’s leading firms is a testament to his dedication and strategic vision in tax advisory. In this interview, Christoph shares insights into his career, his approach to navigating Austria’s unique tax landscape, and the innovative ways Grant Thornton is integrating technology
into their tax services.

Christoph, can you describe your journey to becoming a partner at Grant Thornton Austria and how your background and Masters Degree prepared you for a successful career in tax consulting?

My journey to becoming a partner at Grant Thornton Austria was significantly shaped by my academic background and industry experience. I studied Business Administration at Vienna University of Economics and Business, specializing in “Business Taxation” and “Accounting and Auditing,” which provided a solid foundation for my career in tax consulting. Now, with over 15 years in the field, I have developed expertise in international tax issues, expatriate tax services, VAT, and NOVA. As a certified tax advisor and active member of professional organizations, it is key for my staff and me to stay up-to-date with the latest tax regulations. Working closely with clients and driving their cutting-edge services by providing tailored and strategic advice has always been my priority. Additionally, I enjoy sharing my knowledge as a lecturer and author, which keeps me engaged and informed in the industry.

How do you approach business tax advisory, and what personal principles guide you in tailoring strategies for clients to navigate Austria’s unique tax landscape?

As the Head of Accounting & Payroll at Grant Thornton Austria, my approach to business tax advisory is deeply rooted in leveraging my experience and specialized knowledge in the field. My aim is to provide clients with tailored strategies to help them navigate Austria’s unique tax landscape efficiently and effectively. Here are the key principles guiding my approach:

Client-Centric: As each client has distinct needs and challenges, I focus on a comprehensive assessment of their current tax and compliance status and develop customized strategies that align with their business objectives and industry-specific requirements. This involves understanding their operations, financial goals, and potential tax liabilities to offer solutions that are not only compliant but also advantageous.

Integration of Digital Solutions: The digital transformation of tax processes is a cornerstone of Grant Thornton’s tax advisory practice. Utilizing advanced digital accounting technologies we help our clients to implement perfectly fitted digital solutions that integrate seamlessly with their existing accounting and payroll systems. These digital solutions streamline reporting processes, enhance accuracy, and ensure timely compliance with Austrian tax regulations.

Compliance and Risk Mitigation: Implementing robust tax compliance management systems is crucial in today’s regulatory environment. I emphasize the development of digitalized solutions that enhance both efficiency and accuracy in tax compliance. By setting up these systems, clients can mitigate tax risks, ensure adherence to regulatory requirements, and set a benchmark for excellence in tax risk and compliance management.

Continuous Adaptation and Improvement: The tax landscape is dynamic, with frequent changes in regulations and standards. My tax advisory services are characterized by a commitment to continuous improvement. This means regularly updating clients on regulatory changes, adjusting strategies to meet evolving needs, and ensuring that the tax compliance management systems remain scalable and adaptable.

What are the key challenges that companies commonly face when managing their business taxes, and how do you assist clients in overcoming these obstacles?

Companies face several key challenges when managing their business taxes, primarily due to the complexity and ever-changing nature of tax laws. For many, staying updated and compliant with regulations is a significant hurdle, as intricate tax laws require continuous attention and understanding. To assist our clients in overcoming these obstacles, Grant Thornton Austria provides expert consultation services for specific tax issues that help clients navigate the complexities and maintain compliance.

Maintaining accurate and comprehensive records is another critical challenge, essential for compliance and audits. Companies often struggle with proper documentation, which can lead to complications during audits. To address this, we recommend and implement automation tools and accounting software to streamline record-keeping processes, making them more efficient and error-free.

Another significant challenge our clients frequently encounter, is hiring and retaining qualified professionals in accounting, payroll, and tax and ensuring these employees stay current with the latest legal regulations. Outsourcing these functions to a trusted service provider, like Grant Thornton, offers an effective solution, helping companies navigate these challenges efficiently.

How do you anticipate changes in international tax regulations impacting businesses in Austria, and what advice do you offer clients to prepare for these shifts?

Changes in international tax regulations have a notable impact on businesses in Austria, especially concerning the ongoing increase in cross-border transactions as well as global mobility considerations. International transactions often have an impact on CIT and VAT issues and despite globalization and increased harmonization of regulations through the OECD and within the EU the national regulations still vary considerably. Additionally, these changes could affect the tax treatment of globally mobile employees, influencing compensation structures and benefits, as well as creating potential challenges in managing cross-border assignments. The introduction of a global minimum tax rate and digital tax reporting requirements may further complicate the tax landscape for businesses with international operations, increasing both tax liabilities and the complexity of managing global mobility programs.

To address these challenges, businesses must stay ahead of international tax developments, particularly those affecting globally mobile employees, by regularly updating their knowledge through tax alerts and specialized training. Strengthening compliance and documentation related to global mobility, such as maintaining accurate records of employee assignments and related expenses, will be crucial. We advise our clients to engage in proactive tax planning, including conducting detailed analyses of the potential impact on global mobility policies, and to work closely with experienced tax advisors, like Grant Thornton, to develop tailored solutions that mitigate risks and ensure compliance in this increasingly complex regulatory environment.

Can you share a specific instance where your tax consulting services made a significant difference for a client’s financial performance or compliance?

We worked with one of Europe’s leading car retail groups to design, implement, and continuously support a tailored Tax Compliance Management System (TCMS). This resulted in a significant enhancement in their compliance, reduced liability for both management and responsible parties, and enabled the company to successfully navigate new audit procedures while fostering ongoing collaboration with tax authorities. The result not only improved financial performance but also strengthened regulatory alignment.

In what ways are technological advancements, such as GAI, influencing your approach to business tax advisory, and how is Grant Thornton integrating new tech into its services?

Technological improvements, particularly in AI, digitalization and machine learning, are transforming the landscape of tax advisory, particularly by freeing advisors and accountants to focus on strategic planning, rather than doing repetitive tasks. Machine learning models are being developed to enhance predictive accuracy and risk assessment capabilities, improving overall data analysis and compliance efficiency.

At Grant Thornton Austria, we also leverage digital platforms and comprehensive tax software to streamline our services. A secure client portal facilitates easy document sharing, real-time collaboration, and communication, while cloud-based solutions offer scalable and efficient data management. Integrated tax software combines compliance, planning, and reporting functions into a single platform, regularly updated to adapt to changing regulations and client needs. This technological integration ensures clients receive precise, efficient, and personalized tax advisory solutions.