Global Consumer Product Manufacturer Recovers Overpaid Tax

By PMBA
November 5, 2020
Case Studies
Business Asset Recovery , State & Local Tax

Global Consumer Product Manufacturer Recovers Overpaid Tax

About the Company

The company is one of the world’s largest manufacturers of paper products. With a strong commitment to sustainable production practices, they proactively invest in solutions and technology to drive greater efficiency and quality across their facilities.

The European-headquartered company has subsidiaries in more than a dozen countries including the United States. And over the past decade, they acquired several manufacturers and built a multi-million dollar, energy-efficient manufacturing facility in the U.S.

Key Drivers and Objectives

The company is one of the world’s largest manufacturers of paper products. With a strong commitment to sustainable production practices, they proactively invest in solutions and technology to drive greater efficiency and quality across their facilities.

The European-headquartered company has subsidiaries in more than a dozen countries including the United States. And over the past decade, they acquired several manufacturers and built a multi-million dollar, energy-efficient manufacturing facility in the U.S.

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    DIY Shortcomings

    Most companies with an internal use tax process have a high likelihood of errors. Mainly due to the rapid change in state tax laws that companies find difficult to monitor.

    Most companies do not realize that the manufacturing exemption goes beyond equipment and can extend to other expenses related to the manufacturing process, such as utilities and transportation equipment.

    Strategically Filing Refunds

    Assessing the risk before filing a refund claim when undergoing an audit maximizes results.

    The company was currently under audit in several states and expressed concern that the refund claim would have a negative impact. PMBA addressed this concern by assessing the risk and strategizing with the client on when to file the refund claim in each state.

    Final Results

    All four claims resulted in a net refund of $275,000. PMBA was also able to apply part of the refund against open audit assessments and saved the company an additional $52,000 in interest.

    PMBA responded sensitively to the client’s desire to correct identified errors, and, with the finance team, established process improvements to:

    • Identify exempt vendors and issue the appropriate exemption certificates to prevent future sales tax charges
    • Correct the internal use tax matrix
    • Work with the construction group to ensure that future projects appropriately identified sales tax exemption opportunities

    Why PMBA?

    • Save internal resources so you can focus on other priorities. PMBA’s demonstrated success and focused discipline in Sales & Use Tax leads to faster and more accurate results.
    • Data that works for you. PMBA’s proprietary software and extensive database of over 100,000 vendors can quickly process more information, allowing clients to secure overpayments that other accounting or consulting firms have overlooked.
    • Maximum results. All transactions with sales & use tax are reviewed and every possible exemption is researched and applied.
    • Beyond recovery. Results show potential exposure zones and can be used for continuous process improvements and audit defense prior to future assessments.
    See How PMBA Can Uncover Millions for Your Company