INTRODUCTION 2
Finance Monthly Taxation Awards 2024. INTRODUCTION 5 Taxation FM Welcome to the 2024 edition of the Finance Monthly Taxation Awards, where we honor the exceptional achievements of tax professionals worldwide. This year, we are proud to feature Dionne Cheshier of Cheshier Tax Resolution, Christoph Schmidl of Grant Thornton Austria, and Karen Sands of Terradace on our front cover. Their contributions to the field of taxation not only highlight the expertise and dedication within our industry but also serve as a testament to the ongoing innovation and commitment to excellence that drives tax professionals around the world. Alongside our featured front cover professionals, this edition showcases many other remarkable tax specialists whose work continues to shape the future of taxation. We hope their stories provide inspiration and valuable insights into the ever-evolving world of tax advisory. Warm regards, Mark Palmer Editor-in-chief
EDITOR’S CHOICE TAX RESOLUTION SPECIALIST OF THE YEAR DIONNE CHESHIER Cheshier Tax Resolution BUSINESS TAX ADVISOR OF THE YEAR CHRISTOPH SCHMIDL Grant Thornton Austria ACCOUNTING ADVISOR OF THE YEAR KAREN SANDS Terradace 8 14 18
Finance Monthly Taxation Awards 2024. USA 8 SPECIALIST OF THE YEAR TAX RESOLUTION Welcome to our exclusive interview with Dionne Cheshier, a seasoned tax resolution specialist whose journey from aspiring anesthesiologist to tax expert reveals a deep commitment to service and a nuanced understanding of the IRS. Photography: Kevin Lofgren www.lofgrenphoto.com
Finance Monthly Taxation Awards 2024. USA 9 DIONNE CHESHIER CEO Cheshier Tax Resolution https://www.linkedin.com/in/dionne-cheshier-ea-ctrs-ntpi-fellow-68512a5a/ would send me all the clients I could ever handle. With that, I made the decision to take the fork in the road, and I have never looked back. I later went back to school to pursue a bachelor’s degree in Accounting and graduated with honors. My need to serve the public is still very much alive I just help with taxes instead of medicine! After 21 years in accounting and tax work I saw a growing need with people having issues with the IRS. I began by referring clients to an outside firm. When they weren’t being served in a manner that I felt was “up to par,” I pursued a new set of education credentials to become a Certified Tax Resolution Specialist and an Enrolled Agent and take my practice to a whole new level. Can you explain your process for handling a new client’s case from the initial consultation to resolution? In Cheshier Tax Resolution, we have developed a system we refer to as the “Road to Resolution”. Literally, every case takes different twists and turns on this road; however, the process generally remains the same. Clients start out with a mandatory compliance check. In this stage, we assess the client from both the client’s and the IRS’ point of view to understand the full scope. From here, we are able to make a decision on which winding road the client is Dionne, can you tell us a bit about your background and how you became a tax resolution specialist? My original goal in life was to be an anesthesiologist. My mother, who was a 40-year veteran of the SBA and a pioneer for women and minorities in business, allowed me to ride her coattails and follow her to literally every event growing up. As an admirer of these women in AWED and NAWBO (Association of Women Entrepreneurs of Dallas and National Association of Women Business Owners) it was only natural that I wanted to become one of them. I chose a woman who became the first licensed Hispanic anesthesiologist in Dallas and modeled myself around her advice to pursue science and medicine. In 1995, a mere two classes away from a degree in Biochemistry my father was diagnosed with lung cancer and my life was completely changed forever. While in the surgery waiting room, as they performed a partial lung removal on my father, I sat there with the CFO of the company where my father worked. In this crossroad meeting, he asked me if pursuing medicine was really what I wanted to do. To pursue medicine would have meant to go off to medical school and not spend what may have been my father’s last days with him. In that meeting with the CFO and my parent’s personal accountant, he asked me if I wanted to pursue a career in tax. He stated that if I took the proper courses, then he
USA 10 Finance Monthly Taxation Awards 2024. best suited. From the compliance check, we take a turn to direct them to our sister company (both owned by Dionne) to close any gaps in their filing history. Before the IRS will negotiate a client must be in a compliant status with the IRS. Having no missing back filed returns or estimated payments, we achieve compliance. Once the client is compliant and we know the debt we are looking at we take a third turn to perform an in-depth financial analysis to determine if the debt can be settled, paid or maybe the client is just not collectible at all and we pursue the appropriate road from there. Upon the 4th turn and rounding out the collection phase of the resolution we bring the client across the home plate with the resolution that suits their financial capabilities. You have an impressive record of maintaining a 100% acceptance rate in resolving cases with the IRS. How do you achieve this? 100% comes with caveats. We have had clients give up in the process and we have had them withdraw because they are not happy with our proposed outcome. Clients hear these misleading national advertisements and automatically think that everyone qualifies to settle their debt, which is simply a false belief system created by the media. Every client that we have pursued a resolution and taken the case through collections, sometimes appeals, and even assisted with handling the case through the tax court has received an outcome as initially proposed or better. We have never had a case returned as frivolous or an intentional delay of collection. In other words, the IRS has always seen fit to work with us and find the perfect resolution to the case at hand. When we interview clients we are very thorough and we make sure that the cases we take on are qualified for the programs the IRS is offering. If we take out the clients who quit during the process or decided the IRS was taking too long, then yes, we have absolutely and unequivocally never lost a case. We provide quality work within the criteria and standards of the IRS, and when this happens, the IRS typically (not always) does not have discretionary approval capabilities. The numbers speak for themselves when done properly. Can you walk us through a particularly challenging case and how you successfully resolved it? I have had the fortune of helping many clients and we have resolved more than $500M in cases. I have completed settlements and audit cases that were equally challenging. The IRS is trained to be misleading and lead clients down a road that will trap them into answering questions and putting them in positions that are hard to get out of. I had a case one time where the client was making payroll and never turning over the tax money to the IRS each pay period. They stated that their accountant advised them they could use this money “temporarily” to grow their company, and once they were big enough, then they could pay the IRS. Well, the IRS considers this money “trust fund” money. In other words, the IRS is trusting the employer to collect and turn over this money every pay period. This is one of the only ways the IRS can break through a corporate veil. It is also a fast track to possible criminal investigation and even jail time in certain circumstances. This client hired me after the IRS had come out to interview them. In the interview, the IRS somehow managed to get the client to state his father was the “general manager”. Mind you, the father literally came in to hang out and feed the dogs. He was elderly and just didn’t want to sit at home all day. This trust fund not only comes with assessments for taxes withheld and not turned over, it is also sometimes called the 100% penalty. It is the only penalty, once assessed, that can break through the corporate veil and be assessed to the owners and ANY OTHER person involved. Beware of this penalty, because if you are a payroll processor or a signer on the account or any person of authority in the company (I.E. the General Manager as mentioned above!!), you could very well be held liable. This is what happened to my client. My client’s company was assessed with the $6M debt as well as the sole owner and his “general manager” dad. In the end we were able to settle the corporate debt for just around $246K. The owner was able to settle for $462K, and the father was relieved of all liability. This means that we settled a $6M debt for 11.8%. Prior to being referred to my firm for help, this client was told by many that he should just close his doors. We were able to keep him in his business and teach him the proper way to handle payroll, and today, he is out from under this debt and able to thrive. I pursued a new set of education credentials to become a Certified Tax Resolution Specialist and an Enrolled Agent and take my practice to a whole new level.
Finance Monthly Taxation Awards 2024. USA 11 Your clients are often referred to you by third parties such as mortgage lenders and attorneys. What expertise and experience do you have that goes beyond the counsel of a regular attorney? As an Enrolled Agent I am directly licensed by the US Treasury (which the IRS is a division of) and often preferred by many of the IRS employees due to my specialized knowledge and pursuit for the end solution. As an enrolled agent, my entire career has been based on tax and tax resolution. My test was a four-part test involving every aspect of tax. I have a reputation amongst mortgage lenders and realtors for being able to get liens discharged or subordinated in a very rapid fashion allowing them to close on more loans. The underwriting process is often a challenging one when processors are not able to timely pull transcripts holding up loan closings. We are able to assist and sometimes pull the transcripts instantaneously. We are sought out by Tax attorneys because of our reputation, level of expertise and ability to be shrewd negotiators with the IRS (a skill learned from my father!!) We also work with other Enrolled agents and CPA’s who do not care for this type of work. To negotiate with the World’s largest collection agency takes a specialized skill set that I have now spent years mastering. What common misconceptions do people have about dealing with the IRS and back taxes? This is a loaded question for sure and can be approached in many ways. Here are a few thoughts. First there are those who receive notices and just pay them. The IRS makes many mistakes and erroneous letters are amongst them. If you get a letter, do not jump to pay the amount, especially if it doesn’t “feel” right. If your tax preparer has stated that you have a refund and you get a letter that the IRS has changed your return, take the time to investigate that you actually owe. Second, do not go at it alone. The IRS is trained to phish for information and lead taxpayers down a bunny trail to collect way more information than necessary. To the innocent taxpayer, the IRS will attempt to solicit information beyond the scope of their assignment. Third, EVERY TAXPAYER has rights. Thanks to Nina Olsen (past taxpayer advocate) we now have Publication 1 the Taxpayer Bill of Rights. Taxpayers have a set of rights. The Right to Representation is perhaps the most valuable right. Once invoked, the IRS cannot communicate with the taxpayer, as long as the representative is completing tasks requested of the IRS in the allocated timeframe. If the representative does not cooperate with the IRS or causes intentional Photography: Kevin Lofgren www.lofgrenphoto.com
USA 12 Finance Monthly Taxation Awards 2024. delays of collection, the IRS does have the right to invoke a bypass, so beware that the representative hired is a reputable one. There is also the Right to pay your fair share of tax. This means that the IRS cannot arbitrarily make assessments. There must be proper substantiation for the assessment, thus the previous advice to not pay these arbitrary notices of “proposed” tax due. Next the Taxpayer has the right to finality. This means the IRS cannot drag their feet on and on, they must have an end goal in mind as well. If the “right” representative is hired, they will know the taxpayers rights and hold the IRS responsible to achieve the proper resolution. Finally, it’s not advised to go to court without proper representation; therefore “Why would you want to go up against the “World’s largest collection agency” without proper representation?” What advice would you give to individuals or businesses currently facing significant tax debt, especially regarding the stress and uncertainty of dealing with the IRS? I have trademarked the tagline “Frontline Defender for the Distressed Taxpayer”�. I take this tagline very seriously. My job is to defend taxpayers from the sometimes unfair practices of the IRS. My job has many facets, among them are: to defend the taxpayer at all times, to know when the IRS is “phishing”, to know when they delaying collections, to hold them accountable when necessary, and press them to finality. Most taxpayers are reactive to the IRS and succumb to the scare tactics, unknowing of the tools provided to bring the proper defense. Our job is to be a “Wall of China” between the IRS and taxpayers, so they can rest peacefully knowing we are on guard. Knowing also that we are here to defend and protect so their tax account reaches a zero balance and their life is restored to sanity. There is no such thing as a perfect case but there is always a path to resolution. Photography: Kevin Lofgren www.lofgrenphoto.com Photography: Kevin Lofgren www.lofgrenphoto.com
Finance Monthly Taxation Awards 2024. USA 13 What do you find most rewarding about helping clients resolve their tax issues? The most rewarding experience is having a client in my office who starts out full of anxiety and uncertainty and we are able to bring them to a state of confidence and relaxation, knowing every case has a solution. There is no such thing as a perfect case but there is always a path to resolution. The level of appreciation and gratitude received by a client who can again relax is very rewarding. Finally, what keeps you motivated and passionate about your work in tax resolution? Tax is an everchanging and growing field. It is impossible to know it all. I have always been a person who seeks knowledge and constant learning. I am a firm believer that if at any time, a person does not get up excited to go to work and check out what the day brings, is maybe not in the right field. 15 years after that CFO in the hospital advised me to take the fork in the road one of his previous clients ended up in my office by mere chance. She was so worried because her CPA had passed away, and three years had gone by without her filing a tax return. She came to my office full of anxiety and lost. I was able to get her returns filed and get her compliant. In the process, I noticed that the CPA who had passed away happened to be the CPA who was mentioned in the first question, which led me to take the fork in the road. I knew in that moment of my life coming full circle, I was right where God had intended me to be. Knowing I am serving God everyday in my profession to assist people with tax returns and tax resolution keeps me motivated. It is this motivation that drives my passion and affords a happy life with my children. Photography: Kevin Lofgren www.lofgrenphoto.com
ADVISOR OF THE YEAR BUSINESS TAX 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. AUSTRIA 14 Finance Monthly Taxation Awards 2024.
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 cuttingedge 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. CHRISTOPH SCHMIDL Partner | Head of Accounting & Payroll Grant Thornton Austria Finance Monthly Taxation Awards 2024. AUSTRIA 15
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 Grant Thornton Austria provides expert consultation services for specific tax issues that help clients navigate the complexities and maintain compliance. AUSTRIA 16 Finance Monthly Taxation Awards 2024.
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. Christoph Schmidl Partner | Head of Accounting & Payroll Email: Christoph.Schmidl@at.gt.com Tel.: +43 1 505 4313 2051 Finance Monthly Taxation Awards 2024. AUSTRIA 17
ADVISOR OF THE YEAR ACCOUNTING UNITED KINGDOM 18 Finance Monthly Taxation Awards 2024.
KAREN SANDS CFO at Terradace Karen, congratulations on winning the Accounting Advisor of the Year award! How does it feel to be recognised by Finance Monthly? I was so surprised, and what an accolade – especially when modern-day accountants need to be experts in such a wide variety of areas, it’s definitely harder to stand out these days! I’m so grateful to have been nominated and winning felt very strange. Can you tell us a bit about your journey in the accounting and finance industry? What inspired you to pursue this career? I always wanted to have a career that continued to evolve over time, so that I’d never feel like a master of knowledge and I think I chose the correct career for that aim, as change is so constant in tax, and also in accounting when we don’t just have UK rules, but international, US and often other rules to consider. In terms of my path, I left school at 16 and was one of the first accountancy apprentices; I had no interest in going to university. I started in accounting practice, which taught me some hard lessons and gave me a really strong and broad knowledge base. It taught me a lot of the behavioural and client service lessons that I still carry with me today. We are thrilled to present an exclusive interview with Karen Sands, the winner of the Accounting Advisor of the Year award. Karen has been recognised by Finance Monthly for her exceptional expertise and contributions to the accounting and finance industry. In this interview, Karen shares her inspiring journey, insights on the evolving landscape of accounting, and the unique challenges she faces in her role as CFO at Terradace companies. Her remarkable career path, from being the youngest ICAEW chartered accountant to a seasoned CFO, offers invaluable lessons and perspectives for aspiring professionals. Finance Monthly Taxation Awards 2024. UNITED KINGDOM 19
UNITED KINGDOM 20 Finance Monthly Taxation Awards 2024. I qualified as an ICAEW chartered accountant at 20, the youngest person to ever achieve that (I still hold that record) and then I built a career as a technical lecturer, as I enjoyed the technical side of accounting and tax. I qualified as a chartered tax advisor in 2007, and the sense of achievement I gained from passing those really tough exams was huge. This was still during the time when all exams had to be taken and passed at one sitting. At that point, there was no situation in tax or accounting that I didn’t feel completely confident about advising upon, and I look back on that feeling very fondly. After my technical career, I embarked on a consulting career, doing all sorts of technical projects like IFRS conversions and US GAAP conversions, then later specialising in IPO, M&A work and transformation in general. I’ve worked with some truly fantastic businesses, most are household names. These include Avon, Just Eat, AbInBev, Virgin Media and many more. I didn’t specialise in any particular industry; I was agnostic and focused on the skills rather than the industry, and this has taken me to all sorts of diverse businesses all over the world. I was given the opportunity to step into a CFO role and I jumped at it, and now I’m into my third CFO position.I was CFO at Bowers & Wilkins, a luxury British heritage brand, and then I joined a medical device startup, before finding this role in fresh produce amongst other group businesses. I love the ambiguity of the CFO role, as I have to be wherever the business needs me and change my priorities constantly, thinking ahead to take advantage of opportunities and mitigate risks, I have to be at the very top of my game, always. I must be highly visible and approachable and truly partner the business leaders from a finance standpoint. What are some unique financial challenges specific to the fresh produce industry, such as the impact of climate change on business revenues, and how do you address them in the context of tax and accounting? Climate change is hugely affecting our industry, with our business leaders having never experienced such volatility in their living memory. This year alone we had extreme and unpredictable weather events completely destroying crops and also the El Nino storm in South America, together with war in Israel and the Ukraine. Issues impacting ports can destroy our produce, as it is so perishable. Luckily, we have a great relationship with our many suppliers globally and have diversified our risk as much as possible so that we can continue to supply our customers and in turn, the general public has not seen the potential supply shortages that existed, when they are shopping at the supermarket. The industry moves quickly, and some of our competitors have not been able to continue in business; this is a huge accounting and tax challenge because action needs to be taken really promptly, or the opportunity will get left behind. We have to keep an eye on revenue, ensure that we are controlling our overheads, and manage our liquidity so that we can fuel growth. How do you stay updated with the constantly changing tax and accounting laws and regulations? It’s a huge challenge and I’m not able to be as technical as I once was, because the CFO role requires different skills, including technical but not always. It isn’t possible to be a CFO and be only technical. I always have good advisors around me and a very talented team, and I learned early in my career to fact-check everything in case of changes, so I continue to do that, even if I’m certain of the answer. I increasingly believe that it isn’t possible to keep up to date with multi-jurisdiction tax and accounting rules, let alone alongside applying the rules practically in business. Can you discuss a particular project or case that you are especially proud of during your tenure at DPS Limited, and more broadly, working for Terradace companies? Not yet, we have a diverse group of businesses and there is a huge business project that we are currently I love the ambiguity of the CFO role, as I have to be wherever the business needs me and change my priorities constantly, thinking ahead to take advantage of opportunities and mitigate risks, I have to be at the very top of my game, always.
Finance Monthly Taxation Awards 2024. UNITED KINGDOM 21 undertaking, I’ll be incredibly proud of the outcome once we conclude during late 2024. I’m proud of my ability to be agile, I’ve had to adapt my style significantly in this industry and business that values relationships so much. Some of my prior roles in private equity-backed businesses were much more about results and transactions and not about relationships. Both styles suit their environments and I’ve found this element to be a big learning curve. What role does technology play in your work, and how do you see it evolving in the future of accounting and finance? Do you see AI as a threat or a positive force? This question made me laugh; in the businesses I’ve worked in, there’s no way AI could take over. Any auditor will tell you that until a client can produce a balancing trial balance with no rogue accounts or classification issues, we are all safe. I really believe in the automation of processes and more manual tasks, but tax particularly requires critical thinking, and I don’t think in my lifetime that AI will have an impact beyond transaction processing. I believe ChatGPT failed its accounting exams last year, so we are safe for now. What do you think are the biggest tax challenges businesses face today, and how do you help the companies you work with navigate these issues? It has always been the same challenge, the volume of legislation is overwhelming and the legislation itself can be unclear. Looking for a competitive edge will sometimes involve looking between the rules. A tax strategy is important, as is a risk strategy, and then advisors can be clearer about the objectives of the business and of the investors, and go from there to construct their advice. How do you approach managing the financial complexities of multiple companies under the Terradace umbrella, especially in the fresh produce sector? This is tough and I can’t do it without a very talented and experienced team. The grasp this business as a whole has over its numbers, from top management downwards, is incredible and I have to bring my A game to not only keep up, but add value. I’ve approached this huge challenge by doing a lot of listening, and bringing my experience of working with transformation teams, so that I’m not working in a silo or not considering all angles. There are certain people who need to be in a room when a project such as an acquisition is discussed, from IT and HR to finance, and including the relevant stakeholders early means that the project can be executed without too many bumps in the road. Looking ahead, what are your goals for the future, both for yourself and for Terradace and its companies, such as DPS? I’m delighted to work in this fantastic business with a strong track record of growth, built on excellence and delivery, and with a bright future ahead of it. I’m excited to exploit opportunities to provide different insights into our results and forecasts, using BI tools and other data-led approaches so that our business leaders can be armed with better information to make decisions. My role is to facilitate the growth of the business and to ensure the group is adequately structured and risks are mitigated. I’m excited to see the finance teams develop as the business continues to grow and provide opportunities. I’m also excited for the group to realise some of its technological potential, as we explore new ways to grow fresh produce and combat the impact of climate change. We already do a huge amount of work to reduce food waste and have invested in new technologies that are exciting and different.
AUDIT, ACCOUNTING AND TAXATION ADVISOR OF THE YEAR PHILIP CHLUPACEK TAX.COACH TRANSACTION TAX LAWYER OF THE YEAR DELPHINE PARIGI DPZ Avocats CORPORATE TAX ADVISOR OF THE YEAR NADIM AHMAD PKF Fasselt CRIMINAL TAX LAWYER OF THE YEAR BERND FEHN Fehn Legal TRANSACTION TAX LAWYER OF THE YEAR DR. SVEN LEBER Milbank CORPORATE INCOME TAX ADVISOR OF THE YEAR CARLA CALCAGNILE Jones Day 24 26 33 34 36 38
EUROPE CORPORATE TAX ADVISOR OF THE YEAR ROSA AREIAS PwC Portugal PRIVATE CLIENT TAX ADVISOR OF THE YEAR DIEGO DE MIGUEL CMS Albiñana & Suárez de Lezo PRIVATE CLIENT TAX ADVISOR OF THE YEAR PETE FAIRCHILD Crowe U.K. LLP INTERNATIONAL TAX ADVISOR OF THE YEAR PETER FERRIGNO Henley & Partners TAX ADVISORY FIRM OF THE YEAR ERIC WILLIAMS Eric Williams CTA 40 42 44 47 48
ADVISOR OF THE YEAR AUDIT, ACCOUNTING & TAXATION Philip Chlupacek is a tax consultant and an aspiring accountant with more than a decade of professional experience. His work focuses on high-end tax counselling. He is a proven expert in matters of tax structure and configuration as well as in international tax law. A-1190 Vienna, Muthgasse 109 Tel: + 43 1 328 14 15-10 Fax: + 43 1 328 14 15-99 Email: chlupacek@taxcoach.at www.taxcoach.at USA 24 Finance Monthly Taxation Awards 2024. AUSTRIA
PHILIP CHLUPACEK Executive Partner - TAXCOACH Our philosophy – from entrepreneurs to entrepreneurs Entrepreneurs can create a change in our society. People, who make an effort, who contribute, who want to make a difference. We are here for them and for their enterprises, whether they are individual companies, family-run businesses, a medium-sized industry, NGOs or freelancers. With a team of handpicked and highly qualified employees in the areas of accounting, payroll accounting and tax consulting, we provide a personal and analogue support, even in digital times. The people in our society, who inspire and drive others can count on us as a strong, highly competent and reliable partner with two decades of experience of entrepreneurial and corporate support. Performing the highest standards of our consulting quality, relying on trusted relationships and focussing on personal service are forming the DNA of our company. To achieve this, we do much more than to just offer you a cup of coffee! When working as consultants, we see ourselves as companions of entrepreneurs and companies. The tasks are, in their essence, always the same: to listen attentively, to ask the right questions, to gain understanding and to think it all through so that we can ultimately develop individual, tailor made solutions.The result is a transparent and crystal-clear overview of figures and their impact. This creates security and the foundation for powerful business decisions! A Strong Partner-Team Our firm is led by our dynamic and highly skilled management team with more than 20 years of professional experience. They are supported by a first-class team of handpicked employees, all to the benefit of our clients. The unique DNA of our consulting company is made up of the highest quality of service and advice which all takes place in a very comfortable and homely environment. Founder Dr. Klaus Hafner continues to be an integral part of our law firm – however, he has left his duties as a partner and managing director behind to take on his well-deserved retirement at the age of 70. He has currently left the operative business dealings to the younger ones, whom he supports with guidance and advice. FIRM PROFILE Finance Monthly Taxation Awards 2024. AUSTRIA 25
LAWYER OF THE YEAR TRANSACTION TAX DELPHINE PARIGI Welcome to our exclusive interview with Delphine, founding partner at DPZ Avocats and a renowned expert in tax law. With a distinguished career that began in transaction tax at Big 4 firms in NYC and Paris, Delphine’s academic pursuits at HEC and Paris la Sorbonne have profoundly shaped her expertise. Defying a family tradition of civil service, she embraced an independent path in tax law, fuelled by her passion for freedom and justice. Her unique blend of skills in history, languages, and mathematics and her extensive experience in handling complex tax matters for companies and high-networth individuals set her apart in her field. As we delve into the intricacies of tax law and explore Delphine’s journey and insights, we uncover the nuances of her role and the evolving landscape of tax practice. E: delphine.parigi@dpz-avocats.com www.dpz-avocats.com Founding Partner DPZ Avocats FRANCE 26 Finance Monthly Taxation Awards 2024.
Delphine, can you share with us your journey towards becoming a founding partner at DPZ Avocats and your primary areas of expertise in tax law? It’s clear that my experiences in transaction tax at Big 4 in NYC and Paris, coupled with my academic background at HEC and Paris la Sorbonne, have equipped me with a diverse skill set to handle complex tax questions within tight deadlines, catering to both companies and high net worth individuals. My decision to carve my own path in tax law, despite the influence of a long line of civil servants in my family, speaks volumes about my independent spirit and desire to defend freedom. The influence of my parents as mathematics teachers likely contributed to my affinity for tax, and my multidisciplinary interests in history, languages, and mathematics undoubtedly enrich my professional practice. As a founding partner at DPZ Avocats, my passion for helping clients navigate intricate tax matters has been the cornerstone of my journey. My commitment to freedom and justice, coupled with my expertise, undoubtedly set me apart as a tax lawyer. How do you approach complex tax issues with your clients, especially those unfamiliar with the intricacies of tax law? Certainly, the complexity of tax law is a crucial aspect of the profession. When dealing with clients who are unfamiliar with the intricacies of tax law, clear communication and education are paramount. As a practitioner who started in 2005, I have witnessed the accumulation of tax legislation, making any French tax issue complex in 2024. To respond to the clients’ needs, I make it a point to break down the intricacies of tax law into understandable concepts and estimates at each step of their project, from transaction to exit. This approach ensures that clients are well-informed and empowered in their decision-making process. In the ever-evolving landscape of tax law, it’s essential to keep clients informed about the latest finance bills, administrative guidelines, case law, treaties, EU directives and OECD regulations. By providing clear and comprehensive explanations, I aim to build a trusting relationship with my clients, allowing them to have confidence in the advice and guidance I provide. Ultimately, the trust relationship between clients and lawyers in the realm of tax law is built on transparency, direct communication, and a commitment to empowering clients through valid data. This approach is fundamental in navigating the complexities of tax law and ensuring that clients feel confident in their decisionmaking process. In your opinion, what qualities make an effective tax lawyer? An effective tax lawyer is one who not only possesses a deep understanding of the economic landscape and tax legislation but also exhibits strong analytical skills and the ability to adapt to evolving technological, behaviours’ environment. However, in my opinion, what truly sets an effective tax lawyer apart is the development of empathy and communication skills. These qualities are essential in building trust and delivering tailored solutions, particularly when it comes to defending criminal tax cases. The impact of criminal tax law on the relationship between a client and a tax lawyer cannot be understated. When assisting a client who is facing the fear of potential financial loss due to tax issues, the tax lawyer’s role is to provide reassurance and guidance. However, when dealing with a client who is facing the prospect of losing freedom due to criminal tax charges, the dynamics of the client-tax lawyer relationship change significantly. In such cases, the tax lawyer must not only rely on technical expertise but also prioritize the human aspect of the situation. The ability to empathize with clients and effectively communicate the complexities of criminal tax law is crucial in these scenarios. By understanding and Finance Monthly Taxation Awards 2024. FRANCE 27
28 Finance Monthly Taxation Awards 2024. FRANCE addressing the deep fears and concerns of the client, a tax lawyer can provide not only legal guidance but also emotional support. This approach places the technical aspects of tax law in the service of human needs, ensuring that clients feel secure and understood throughout the legal process. In summary, the qualities that make an effective tax lawyer extend beyond technical knowledge and analytical skills. Empathy and strong communication skills play a pivotal role, particularly in criminal tax cases, where the client’s fears and concerns are at the forefront. By prioritizing the human aspect of the client’s experience and providing tailored, empathetic support, a tax lawyer can truly make a meaningful impact in the client’s life. Moving on to your comprehensive range of tax services - The pace of tax change has increased in recent years, with countries looking to implement new tax laws and refine their tax systems. How have recent changes in international tax laws potentially impacted your clients? What do they need to know? Thank you for highlighting the increasing pace of tax changes and the impact they have had on our clients. Indeed, the multiple contradictory changes in international tax laws have necessitated a proactive approach from our clients to adapt to new regulations and compliance requirements. It is crucial for them to stay abreast of these changes in order to minimize potential risks and optimize their tax positions with a new approach with the tax authorities. In particular, in France, the criminalization of tax law since the implementation of the law on 23 October 2018 has had a profound impact. Taxpayers must be aware that their bad faith is often presumed in practice, and the tax police are empowered to employ measures such as police custody, telephone tapping, surveillance, and geolocation. Furthermore, the threshold for automatic referral of cases to the Public Prosecutor’s Office is set at €100,000 of evaded duty. There is also the potential for an immediate appearance on recognition of guilt (CRPC), commonly known as “pleading guilty,” to expedite the processing of cases. Additionally, deliberate failure to comply with French tax legislation can result in the application of a 40%, 80%, or 100% surcharge on the tax due. Furthermore, both criminal and administrative sanctions for serious tax fraud are subject to public disclosure. It is imperative for our clients to be well-informed about these developments and to take the necessary steps to ensure compliance with the evolving tax landscape. We guide our clients through these changes by implementing a new approach to the tax field by developing rulings and using a trusted relationship with the French Tax Authorities. While many territories close this opportunity of rulings, the French government develops this practice. Today it is the sole real insurance against any criminal prosecution in France, with respect to tax. Could you elaborate on the most challenging aspects of advising on tax issues in cross border M&A transactions and how you navigate the complexities of multi jurisdictional tax laws? Advising on tax issues in cross-border M&A transactions is indeed a complex and challenging endeavour. The involvement of criminal law in M&A and the requirement of regularization services since 2018 have added further layers of complexity to this already intricate landscape in France. Coordinating tax strategies across different jurisdictions and ensuring compliance with diverse regulatory frameworks are among the most challenging aspects. Additionally, the need to navigate multijurisdictional tax laws, transaction structuring, and due diligence requires a comprehensive understanding of international tax matters. However, modelling with AI provides additional opportunities and time savings compared to the past decade. The implementation of a new compliance service (« le service de conformité fiscale ») dedicated to M&A since 2018 is particularly noteworthy, as it enables companies and French permanent establishments or their directors to bring their tax situation into line
29 Finance Monthly Taxation Awards 2024. FRANCE spontaneously through a simplified procedure. This service also takes into account the rates of applicable surcharges and interest on arrears, adjusting them to align with the approach adopted by the company. In the context of international tax matters, issues such as undeclared activity in France constituting a permanent establishment, deduction of all or part of a loan granted by a foreign company in breach of the provisions of Article 212 of the French Tax Code, and illegal or abusive arrangements further contribute to the intricacies of advising on tax issues in cross-border M&A transactions. Successfully navigating these complexities requires a deep understanding of the legal and regulatory frameworks in multiple jurisdictions, as well as a proactive approach to compliance and risk management. In international real estate investment, what key tax considerations should investors be aware of, particularly in the French market? Until 2023, the sole stable reference for foreign investors in French real estate was the regular increase of prices. The real estate market is slowing down and the situation is not expected to improve in 2024. This is due to a difficult economic period marked by inflation, which results in a drop in the purchasing power of the French residents, and an increase in bank interest rates, making access to credit more difficult. Sales are therefore down at the end of 2023 and the trend is likely to continue. In their report for the year, the Notaries of France actually observed a decrease in the number of sales in 2023. While 1.13 million sales were made between September 2021 and September 2022, only 928,000 were recorded over the same period. , the next year. “The decline in the number of transactions has accelerated since 2023, reaching 908,000 sales in France (-20% over one year) over 12 rolling months to the end of October 2023”, also notes the FNAIM-Clameur real estate barometer for December 2023. At the same time, a drop in prices was observed at the end of the year, a first since 2015. The Notaries of France thus noted a drop throughout France, and more markedly, in Paris’ area. The price index for old apartments in mainland France fell by 2% over one year and that of old houses, by 1.6%. In Ile-de-France, the index fell by 5.3% for apartments and 5.4% for houses. For apartments and houses, this trend is likely to continue in 2024. While credit rates should also stabilize after having been very high in recent months, counting on a rate of around 4.3% in the first quarter of 2024, the various players are not optimistic about a market recovery over the coming year. From a French tax standpoint, foreign private investors are clearly considered as an important variable adjustment of the French Budget with severe regimes and without any effort of attractiveness. Before purchasing a French real estate property, it is key to determine the structure that will be used to hold it. The choice between purchasing the property through a company (either a non-French company, or a French real estate company) or in one’s own name will depend on several factors, the most important being the following: • The use of the property (i.e., whether it will be partly rented out furnished). In case it is anticipated that the property would be partly rented out furnished, holding the property through a French civil company would trigger adverse tax consequences (and notably, the application of French corporate income tax on a notional annual income supposedly equal to the fair market “Empathy and strong communication skills play a pivotal role, particularly in criminal tax cases, where the client’s fears and concerns are at the forefront.”
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