An international business in the food service industry, headquartered in two major cities on two continents, was under criminal investigation for tax evasion. Pursuant to a legal integrity agreement with the prosecutor, a monitor was required to ensure accurate financial report and tax compliance.
Baker Tilly monitored the international business, using forensic accounting and investigative procedures focused on the entities’ financial reporting and tax compliance. Baker Tilly extensively interviewed the client’s tax preparer, legal counsel, and other key personnel to ensure correct tax treatment of various items. Lastly, our team reviewed financial statements generated by the client to ensure transparency in financial reporting.
Baker Tilly’s investigation led to the discovery of underreporting of taxable income and underpayments of taxes. This resulted in $7.5 million dollars repayment of taxes owed.
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