Tax Consultant Thomas Kiel,
Diplom-Ökonom

I consider certain key events from childhood, youth and adulthood much more relevant than any information. This includes, for instance, the first time I met my wife twenty years ago, helping my four children grow up as well-rounded individuals, and everything enjoyed with friends and companions along the way. These experiences form the basis of my professional identity.

For you as a client, however, these data are also of interest:

Curriculum vitae of Thomas Kiel

 

 Contact us 0251/384 713 54

Tax Consultant Claudia Sauerbier,
Diplom-Kauffrau

My work as a tax consultant allows me to find creative solutions for our clients on complex subject areas. For example, offering foundation consultancy to non-profit organisations is a continuous yet exciting challenge. Furthermore, professional tax consultants should always bear in mind that they are dealing with people and their professional identity. This is, indeed, my personal driver at work: To help my clients with practical and specific solutions.

Curriculum Vitae of Claudia Sauerbier

 

 Contact us 0251/384 713 54

Different industries – individual consultancy

No matter the legal form, industry, or company size; our advice is precisely tailored to your requirements

Because we know that customers value and need individually tailored solutions over off-the-shelf tax advice. Far from the cookie-cutter approach, our consultancy invariably revolves around your organisation’s requirements. We see ourselves as partners by your side. Our abilities go far beyond the simple handling of fiscal transactions. In fact, we can help you design all of your company’s business processes.

A selection of our consultancy clients:

Mid-sized companies: For the most important part of the economy

Medium-sized companies are more than just “hidden champions” in Germany. In fact, they bring stability to the German economy, but demand extensive tax and economic consultancy to keep on doing so.

Our services help you concentrate entirely on your core business, because our client-optimised work protects you against unpleasant surprises. This includes our timely handling and delivery of all necessary declarations and financial statements. Digital and ever-transparent (financial) accounting is the basis of your efficient controlling. It not only provides you with insight into your current treasury position regardless of time and location, but also underlies your planning process. Although no entrepreneur would be glad to receive a tax audit notification, we can help you navigate this process while actively representing your position. We shall also handle claims and appeals as your trusted partner.

All in all, nobody knows the economic background of your company as well as your tax consultant. That is why, as commercial and economic professionals, we offer a range of consultancy services that extend far beyond the traditional portfolio. Your benefit: Optimised organisation, transparent procedures, and a clear strategy

Sample of business services:

Health professionals: Special expertise for doctors and pharmacists

Even if large physicians’ offices and pharmacies with branches are basically commercial enterprises, they differ from conventional companies in a few ways. Further to the classification as regulated professions and restrictions on external representation, this also includes numerous business details.

Whether as a doctor or pharmacist, you already bear a significant administrative burden: We will keep your back with our tax consultancy support. This includes all ACCOUNTING MATTERS and the organisation of your practice. Are you a new founder or just plan to establish yourself? If so, we can be your partner in drafting a solid business plan, searching for a suitable site, seeking subsidies, or in preparing expert reports for your practice. And if you are contemplating a well-earned retirement, we can help you SELL OR TRANSFER your practice. In this way, medical professionals and pharmacists benefit from our full-service throughout their professional life.

Only a few professional groups benefit this much from professional co-operation as health care professionals do. However, it is difficult to find a suitable solution among the endless possibilities. For example, is it advisable to cooperate with clinics or with other specialist disciplines in health centres? Let’s find out.

As in many other areas, business success for health care professionals also arises from team play. Different disciplines mutually benefit from their know-how. There are synergies in administration, personnel, the use of medical devices, common consultations, and many other topics. A perfect example thereof is the cooperation of dentists and jaw surgeons. However, all of these matters are highly complex and hard to grasp for economic laymen, let alone to understand their fiscal implications. We shall be glad to answer these questions.

Professional sports associations: Staying true to their non-profit nature

Sports associations with professional sections are undergoing minor changes: While their non-profit nature offers them a few, non-negligible advantages, their economic activity clashes with their status. We have identified a few sensible ways out of this conundrum, which we would like to share with you.   

In this context, associations leading one or more professional sections are prevented from pursuing any mainly economic or profit-oriented endeavour. In the worst-case scenario, a Tax Office inspection may revoke the non-profit status of the association, which may mean its end as an organisation. This undesirable situation may be triggered by ignorance of the complex NON-PROFIT LAW, wrong advice in the formulation of the statutes, and errors in the formation of assets or reserves, or when divesting sections. Fortunately, you can avoid such pitfalls by relying on our experience and knowledge of this intricate legal area.

Through our advice, you can take the necessary measures to harmonise association and non-profit law with the commercial activity. Needless to say, we primarily seek to preserve your non-profit condition.

The provisions of the non-profit-making law are particularly relevant for tax purposes, specifically regarding the recognition of associations as non-profits by the Tax Office. Moreover, association statutes must also meet the special requirements of sporting federations, such as those of the DFB by German professional clubs. These different requirements can be met, for instance, by spinning off professional sports sections into GmbHs (German limited liability company). Despite professionally operated sports and income from the game arising from transfers or sponsors, our structural advice helps retain the non-profit nature of the parent club or association. We also ensure that association boards are exposed to a minimum liability risk.

Individuals: Never pay more taxes than those lawfully owed to the State

Germany’s tax law is rightly regarded as the most complex and extensive legal system of ​​its kind in the world. For the average taxpayer, its processes and regulations prove nearly unmanageable.

This is indeed true for a most people attempting to complete an income tax declaration correctly, possibly struggling with all investments, let alone regarding capital gains tax, or the tax assessment of properties, land and real estate. We analyse your assets and deposits, check withholding tax applications, and tax deductions through the bank. Upon dispute, our advice can save you money – it’s yours after all!

Take on old-age insurance with property ownership or purchase? It is a sensible idea when interest rates are low, and provided the tax implications of such purchase are considered.

Property can be subject to a myriad of different tax types. Thus, further to the basic purchase tax on the acquisition and the current property tax, VAT may be applicable, and inheritance or gift tax may be also due; what is more, the surplus is relevant for income taxation purposes, very much like it would on a property sale. Need we say anything else? It would be best if we could have a conversation before buying.

Sample of our services:

  • Income tax declarations
  • Verification of capital income tax, advice on withholding tax queries
  • Determination of income from letting and leasing
  • Inheritance tax declarations for heirs and heir communities
  • Gift tax declarations
  • Land valuation declaration
  • Expert reports on value of land and buildings
  • Profitability considerations for property purchasesIncome tax declarations

Different industries – individual consultancy

No matter the legal form, industry, or company size; our advice is precisely tailored to your requirements

Because we know that customers value and need individually tailored solutions over off-the-shelf tax advice. Far from the cookie-cutter approach, our consultancy invariably revolves around your organisation’s requirements. We see ourselves as partners by your side. Our abilities go far beyond the simple handling of fiscal transactions. In fact, we can help you design all of your company’s business processes.

A selection of our consultancy clients:

Mid-sized companies: For the most important part of the economy

Medium-sized companies are more than just “hidden champions” in Germany. In fact, they bring stability to the German economy, but demand extensive tax and economic consultancy to keep on doing so.

Our services help you concentrate entirely on your core business, because our client-optimised work protects you against unpleasant surprises. This includes our timely handling and delivery of all necessary declarations and financial statements. Digital and ever-transparent (financial) accounting is the basis of your efficient controlling. It not only provides you with insight into your current treasury position regardless of time and location, but also underlies your planning process. Although no entrepreneur would be glad to receive a tax audit notification, we can help you navigate this process while actively representing your position. We shall also handle claims and appeals as your trusted partner.

All in all, nobody knows the economic background of your company as well as your tax consultant. That is why, as commercial and economic professionals, we offer a range of consultancy services that extend far beyond the traditional portfolio. Your benefit: Optimised organisation, transparent procedures, and a clear strategy

Sample of business services:

Health professionals: Special expertise for doctors and pharmacists

Even if large physicians’ offices and pharmacies with branches are basically commercial enterprises, they differ from conventional companies in a few ways. Further to the classification as regulated professions and restrictions on external representation, this also includes numerous business details.

Whether as a doctor or pharmacist, you already bear a significant administrative burden: We will keep your back with our tax consultancy support. This includes all ACCOUNTING MATTERS and the organisation of your practice. Are you a new founder or just plan to establish yourself? If so, we can be your partner in drafting a solid business plan, searching for a suitable site, seeking subsidies, or in preparing expert reports for your practice. And if you are contemplating a well-earned retirement, we can help you SELL OR TRANSFER your practice. In this way, medical professionals and pharmacists benefit from our full-service throughout their professional life.

Only a few professional groups benefit this much from professional co-operation as health care professionals do. However, it is difficult to find a suitable solution among the endless possibilities. For example, is it advisable to cooperate with clinics or with other specialist disciplines in health centres? Let’s find out.

As in many other areas, business success for health care professionals also arises from team play. Different disciplines mutually benefit from their know-how. There are synergies in administration, personnel, the use of medical devices, common consultations, and many other topics. A perfect example thereof is the cooperation of dentists and jaw surgeons. However, all of these matters are highly complex and hard to grasp for economic laymen, let alone to understand their fiscal implications. We shall be glad to answer these questions.

Professional sports associations: Staying true to their non-profit nature

Sports associations with professional sections are undergoing minor changes: While their non-profit nature offers them a few, non-negligible advantages, their economic activity clashes with their status. We have identified a few sensible ways out of this conundrum, which we would like to share with you.   

In this context, associations leading one or more professional sections are prevented from pursuing any mainly economic or profit-oriented endeavour. In the worst-case scenario, a Tax Office inspection may revoke the non-profit status of the association, which may mean its end as an organisation. This undesirable situation may be triggered by ignorance of the complex NON-PROFIT LAW, wrong advice in the formulation of the statutes, and errors in the formation of assets or reserves, or when divesting sections. Fortunately, you can avoid such pitfalls by relying on our experience and knowledge of this intricate legal area.

Through our advice, you can take the necessary measures to harmonise association and non-profit law with the commercial activity. Needless to say, we primarily seek to preserve your non-profit condition.

The provisions of the non-profit-making law are particularly relevant for tax purposes, specifically regarding the recognition of associations as non-profits by the Tax Office. Moreover, association statutes must also meet the special requirements of sporting federations, such as those of the DFB by German professional clubs. These different requirements can be met, for instance, by spinning off professional sports sections into GmbHs (German limited liability company). Despite professionally operated sports and income from the game arising from transfers or sponsors, our structural advice helps retain the non-profit nature of the parent club or association. We also ensure that association boards are exposed to a minimum liability risk.

Individuals: Never pay more taxes than those lawfully owed to the State

Germany’s tax law is rightly regarded as the most complex and extensive legal system of ​​its kind in the world. For the average taxpayer, its processes and regulations prove nearly unmanageable.

This is indeed true for a most people attempting to complete an income tax declaration correctly, possibly struggling with all investments, let alone regarding capital gains tax, or the tax assessment of properties, land and real estate. We analyse your assets and deposits, check withholding tax applications, and tax deductions through the bank. Upon dispute, our advice can save you money – it’s yours after all!

Take on old-age insurance with property ownership or purchase? It is a sensible idea when interest rates are low, and provided the tax implications of such purchase are considered.

Property can be subject to a myriad of different tax types. Thus, further to the basic purchase tax on the acquisition and the current property tax, VAT may be applicable, and inheritance or gift tax may be also due; what is more, the surplus is relevant for income taxation purposes, very much like it would on a property sale. Need we say anything else? It would be best if we could have a conversation before buying.

Sample of our services:

  • Income tax declarations
  • Verification of capital income tax, advice on withholding tax queries
  • Determination of income from letting and leasing
  • Inheritance tax declarations for heirs and heir communities
  • Gift tax declarations
  • Land valuation declaration
  • Expert reports on value of land and buildings
  • Profitability considerations for property purchasesIncome tax declarations

Tax consultancy: Far more than routine advice

As a tax consultant, we can process the tax obligations of our clients correctly, submit declarations on time, deliver clean accounting, and then settle all services delivered according to the Remuneration Regulation for tax advisors, tax agents and tax consultants (StBVV). This is all fine, but fails to define our profession.

In our view, good tax consultancy does first and foremost concern our commitment to the customer, and the civil yet resolute representation of their interests before the Tax Office. Key to this process is the moderation between both parties, and the accurate interpretation of the German Tax Office’s convoluted mandates. Extensive know-how including continuing education and training is required to deliver value to customers, because the legislator regularly amends and issues new regulations, making the relevant tax legislation ever more complex.

This shall suffice as a description of our professional identity; in the end, the above-mentioned features are by no means the norm. At any rate, our services extend far beyond the usual tax consultancy menu, because we always view companies as a whole.

Our holistic approach accompanies and supports organisations throughout their entire life cycle, for example, from drafting business plans to succession planning. As your trusted partners, we can help you develop long-term tax strategies in support of your business vision. At the same time, our guiding principle as tax consultants remains the business optimisation of your company.

 

 Get in Contact 0251/384 713 54

Services: Laying down a solid foundation

A modern tax consultancy handles declarations or accounting, while keeping the broader corporate business issues in sight. Nevertheless, traditional work areas retain their relevance.

Example of financial accounting: Besides being required by law, accounting underlies modern controlling. Numerous analysis tools from simple target-to-target comparison to complex company planning are dependent on transparent financial accounting. With sound financial information, you can confidently develop strategies, determine capital requirements, and plan solid business decisions.

Our services in detail

Payroll and financial accounting: A taste of modern accounting

The importance of accounting is often underestimated, even if it underlies your controlling processes. You can save significant resources by outsourcing time-consuming and costly work.

In doing so, you no longer depend on your workforce’s absence and vacation schedule. Moreover, you can save on employee induction, further education and training, while avoiding any expensive software and updates. And data security is no longer a concern. And apropos digitisation: Modern accounting is digital accounting. Pendulum files and overflowing paperwork are a thing of the past. Today, you can check your treasury figures at any time, from any location.

Accurate, in-depth knowledge of different legal areas is key to proper payroll and financial accounting. However, tax, social security and labour law changes regularly – under our watchful eye.

Sample of payroll and financial accounting services:

  • Payslip generation, accounts receivable management, completing the necessary reporting and certification (social insurance, professional associations, etc.)
  • Management of external and internal accounting, also in foreign currency, if necessary according to individual chart of accounts
  • Business assessments along with comparative calculations (target / actual, previous year comparisons, time series)
  • Cost centre and cost-type accounting

Relevance of declarations & financial statements

Income tax declarations or financial statements are burdensome and costly obligations, which use up valuable resources and only benefit the tax consultant’s coffers. This is simply untrue: Let us provide you with four solid reasons why you should regard declarations as valuable instruments.   

1. Banks consider a sound balance sheet as the best argument to grant a loan. Whether for ongoing investments, machine park extensions, or the opening of new sites, credit institutions will first review the applicant’s annual financial statements. Other lenders and potential shareholders will also scrutinise your figures very carefully before committing to your project. What is more, the balance sheet is the most important rating factor under Basel III. 2. Strategic decisions are not least due to the current balance sheet. 3. The tax consultant’s conclusion creates legal certainty for you as managing director. 4. Although hardly a practical argument, it is equally important to remember that declarations are mandated by law.

In the case of “external reporting”, we may be able – for instance, in the case of consolidated financial statements – to take care of the whole transaction.

Sample of our declarations and annual financial statements services:

  • Preparation of the annual financial statements including all components (balance sheet, profit and loss account, notes, collaboration in drafting the management report)
  • Clean reporting
  • Preparation of all related tax declarations including the tax group
  • Balance sheet analysis and presentation
  • Special balance sheets such as interim financial statements, strategic investments, company foundations or liquidation
  • Consolidated financial statements according to the German Commercial Code (Handelsgesetzbuch – HGB)
  • Full preparation with the creation of reporting packages

Tax audits: No reason for concern

The Tax Office has not neglected its own technical and process development in recent years. The digitalisation of tax inspection procedures has increased the number of audits, because the Tax Office can now perform them more efficiently, faster, and more extensively. This should be no cause for concern.

We supervise the tax audit, as well as all inspections carried out by pension insurers, the Federal Office, and health insurance companies. While our stance is perfectly neutral, we are firmly committed to your business success. Because we understand what competencies the auditor has and which not. We prepare all documents, and the audit can take place in our offices, in your company’s premises, or in those of the Tax Office. The audit ends once the closing meeting is held and the audit report is issued. We shall thoroughly review the outcome and recommend an appropriate approach.

The main prerequisite for successful audit is a clean and transparent ACCOUNTING, which is usually the most important audit item. If you have entrusted us with the accounting, you have nothing to fear.

Sample of our tax audit services:

  • Prevention of possible audit findings within the scope of the financial accounting / financial statements
  • Preparation of all relevant documents
  • Support to the audit process, answering on your behalf all auditors’ questions
  • Reporting to the clients on the current tax audit status
  • Accompanying the client at the closing meeting
  • Analysis and discussion of the tax audit report
  • If necessary, new audit of the amended assessment

To be right and to be proven right: Managing objections and claims

In general, there are reasonable chances of being proven right upon objecting to a tax assessment. According to an expert opinion, up to one third of all assessments are incorrect. In 2016, about three million taxpayers and companies came to such conclusion and appealed.

Moreover, the legal opinion of the Tax Office is not the expression of a higher power to be blindly obeyed without any objection whatsoever. On the contrary, if the tax assessment is indeed incorrect and there is chance to win the case, you should absolutely exercise your right of appeal. Before doing so, however, it is important to weigh risks and opportunities carefully, because if the appeal is not sustained – the so-called “vilification” – the tax burden increases relative to the original one. We will analyse your case and offer detailed advice on how to proceed further.

And what happens after the appeal? You should appeal whenever there is a discrepancy between your legal interpretation and that of the Tax office. Also, your cost-benefits analysis should indicate if and how to proceed. Throughout the process, we stand by your side, representing you in court to defend your legal position.

Sample of Claims and Appeals Services:

  • Expert opinions
  • Execution of the appeal procedure / objection
  • Claim before the financial courts and the Bundesfinanzhof
  • Process management, if necessary with the involvement of specialist jurists

Services: Laying down a solid foundation

A modern tax consultancy handles declarations or accounting, while keeping the broader corporate business issues in sight. Nevertheless, traditional work areas retain their relevance.

Example of financial accounting: Besides being required by law, accounting underlies modern controlling. Numerous analysis tools from simple target-to-target comparison to complex company planning are dependent on transparent financial accounting. With sound financial information, you can confidently develop strategies, determine capital requirements, and plan solid business decisions.

Our services in detail

Payroll and financial accounting: A taste of modern accounting

The importance of accounting is often underestimated, even if it underlies your controlling processes. You can save significant resources by outsourcing time-consuming and costly work.

In doing so, you no longer depend on your workforce’s absence and vacation schedule. Moreover, you can save on employee induction, further education and training, while avoiding any expensive software and updates. And data security is no longer a concern. And apropos digitisation: Modern accounting is digital accounting. Pendulum files and overflowing paperwork are a thing of the past. Today, you can check your treasury figures at any time, from any location.

Accurate, in-depth knowledge of different legal areas is key to proper payroll and financial accounting. However, tax, social security and labour law changes regularly – under our watchful eye.

Sample of payroll and financial accounting services:

  • Payslip generation, accounts receivable management, completing the necessary reporting and certification (social insurance, professional associations, etc.)
  • Management of external and internal accounting, also in foreign currency, if necessary according to individual chart of accounts
  • Business assessments along with comparative calculations (target / actual, previous year comparisons, time series)
  • Cost centre and cost-type accounting

Relevance of declarations & financial statements

Income tax declarations or financial statements are burdensome and costly obligations, which use up valuable resources and only benefit the tax consultant’s coffers. This is simply untrue: Let us provide you with four solid reasons why you should regard declarations as valuable instruments.   

1. Banks consider a sound balance sheet as the best argument to grant a loan. Whether for ongoing investments, machine park extensions, or the opening of new sites, credit institutions will first review the applicant’s annual financial statements. Other lenders and potential shareholders will also scrutinise your figures very carefully before committing to your project. What is more, the balance sheet is the most important rating factor under Basel III. 2. Strategic decisions are not least due to the current balance sheet. 3. The tax consultant’s conclusion creates legal certainty for you as managing director. 4. Although hardly a practical argument, it is equally important to remember that declarations are mandated by law.

In the case of “external reporting”, we may be able – for instance, in the case of consolidated financial statements – to take care of the whole transaction.

Sample of our declarations and annual financial statements services:

  • Preparation of the annual financial statements including all components (balance sheet, profit and loss account, notes, collaboration in drafting the management report)
  • Clean reporting
  • Preparation of all related tax declarations including the tax group
  • Balance sheet analysis and presentation
  • Special balance sheets such as interim financial statements, strategic investments, company foundations or liquidation
  • Consolidated financial statements according to the German Commercial Code (Handelsgesetzbuch – HGB)
  • Full preparation with the creation of reporting packages

Tax audits: No reason for concern

The Tax Office has not neglected its own technical and process development in recent years. The digitalisation of tax inspection procedures has increased the number of audits, because the Tax Office can now perform them more efficiently, faster, and more extensively. This should be no cause for concern.

We supervise the tax audit, as well as all inspections carried out by pension insurers, the Federal Office, and health insurance companies. While our stance is perfectly neutral, we are firmly committed to your business success. Because we understand what competencies the auditor has and which not. We prepare all documents, and the audit can take place in our offices, in your company’s premises, or in those of the Tax Office. The audit ends once the closing meeting is held and the audit report is issued. We shall thoroughly review the outcome and recommend an appropriate approach.

The main prerequisite for successful audit is a clean and transparent ACCOUNTING, which is usually the most important audit item. If you have entrusted us with the accounting, you have nothing to fear.

Sample of our tax audit services:

  • Prevention of possible audit findings within the scope of the financial accounting / financial statements
  • Preparation of all relevant documents
  • Support to the audit process, answering on your behalf all auditors’ questions
  • Reporting to the clients on the current tax audit status
  • Accompanying the client at the closing meeting
  • Analysis and discussion of the tax audit report
  • If necessary, new audit of the amended assessment

To be right and to be proven right: Managing objections and claims

In general, there are reasonable chances of being proven right upon objecting to a tax assessment. According to an expert opinion, up to one third of all assessments are incorrect. In 2016, about three million taxpayers and companies came to such conclusion and appealed.

Moreover, the legal opinion of the Tax Office is not the expression of a higher power to be blindly obeyed without any objection whatsoever. On the contrary, if the tax assessment is indeed incorrect and there is chance to win the case, you should absolutely exercise your right of appeal. Before doing so, however, it is important to weigh risks and opportunities carefully, because if the appeal is not sustained – the so-called “vilification” – the tax burden increases relative to the original one. We will analyse your case and offer detailed advice on how to proceed further.

And what happens after the appeal? You should appeal whenever there is a discrepancy between your legal interpretation and that of the Tax office. Also, your cost-benefits analysis should indicate if and how to proceed. Throughout the process, we stand by your side, representing you in court to defend your legal position.

Sample of Claims and Appeals Services:

  • Expert opinions
  • Execution of the appeal procedure / objection
  • Claim before the financial courts and the Bundesfinanzhof
  • Process management, if necessary with the involvement of specialist jurists

Business consultancy: Optimize the entire enterprise

No one is so well suited to provide business advice for your company as your tax consultant. Further to our intimate understanding of your figures, data, and our professional skills, we have the necessary distance to always keep the entire picture in sight. 

Of course, any good strategy stands on thorough, all-round analysis. Accordingly, we shall gladly support you in setting up or restructuring your controlling processes. On the basis of reliable data, we carry out target / actual comparisons, capital requirement planning, variance analyses, cost accounting and cost centre accounting, which can be used, for example, to monitor the success of individual branches or departments. Using this information as a starting point, we conduct your financial planning, i.e. the planning of income, liquidity and balance sheet, as well as of every other business component. Thus, we can directly establish or optimise new structures as part of your business processes, either as an external service provider or as an interim manager. Our services cover the planning, execution and development of company acquisitions and sales, as well as company mergers. Are you looking for a company successor? If so, we can help.

A selection of our services:

Interim management: Business advice when and where needed.

In our digitized world, it is irrelevant whether intellectual services are provided on premise; ultimately, it is the outcome that matters. While this is certainly true for employees working remotely or from home, our offering in this respect looks somewhat different. Understand the advantages of interim management directly in your company.

Especially in exceptional situations and far-reaching changes such as company acquisitions, rebuilding of departments, branch or subsidiary closing, product launches, or the search for a SUCCESSOR, managing the process directly at your site might prove beneficial.

In this context, face to face communication and dialogue become more direct and easier, and this immediacy shortens decision-making cycles. What is more, employees can attribute any decisions we make together to actual persons, which lends legitimacy to the whole process.

We can thus discuss, directly on-premise, financial planning, the establishment / restructuring of the controlling department, or simply a compensation for unexpectedly terminated employees. This form of business consultancy includes personnel responsibility, for instance, when restructuring or optimising your organisation. 

Making profits as a non-profit organisation: Reconciling both realities

The non-profit status is a meaningful institution, which can be roughly described as follows: Anyone doing something for the common good receives tax advantages on the part of the State in return. To be sure, the legislator pursues a whole series of non-profit purposes from SPORTS to international understanding; however, standards for interpreting what may and may not constitute a non-profit organization prove much stricter.  

And non-profit organisations whose status is revoked by the Tax Office can face significant economic difficulties including bankruptcy. In such cases, for example, the Tax Office demands the retroactive settlement of corporation tax. Organisations that operate as a non-profit, limited liability companies (gGmbH), therefore, must meet a number of requirements e.g., from the wording of their statutes to day-to-day operation. How are profits generated, how are assets and reserves formed, how can we establish a clean separation between non-profit and commercial operations? For example, these questions must be specifically addressed for organisations such as retirement homes, which reinvest money in real estate to benefit from the rental income, or which operate a coffee shop for their residents and hire staff.

As tax consultants, we support you from the foundation of the non-profit organization / association to its full development and regular operation. We provide legal advice through experienced lawyers from our network.

Services for non-profit companies and associations (extract):

  • Consultancy in establishing non-profit organisations, in particular family foundations
  • Tax consultancy regarding the drafting of company agreements and statutes
  • Consultancy of on asset and reserve formation
  • Tax consultancy and advice on legal certainty in the current business (accounting, input tax deductions, VAT specifics, etc.)
  • Fulfilment of tax declarations, preparation of annual financial statements as well as asset and resource utilization statements
  • Legally compliant handling of sponsorship funds, public grants, donations and membership fees
  • Restructuring measures (e.g., outsourcing in service companies)
  • Support during tax audits, appeals and complaints before tax courts

Succession consultancy: Leaving your life’s work in good hands

As they start thinking about succession, owners have usually worked for decades in their company. This is particularly true for family businesses, where owners have great emotional attachment to their organisations. And this should come as no surprise, as it is their life’s work. We ensure a smooth delivery to the next generation, either through a gift during the owner’s lifetime, or via a testamentary decision.

In our experience, successful succession consultancy must look at the process as whole, from all possible angles. The will of the potential testator is paramount throughout the entire planning phase, and making his or her wishes come true remain our top priority. To avoid misunderstandings, nonetheless, the entire owner’s family must be included. In this scenario, we strive to reconcile distinct positions and ideas. In our experience and according to all parties involved, our mediation avoids inheritance disputes.

Generally speaking, succession consultancy engagements unfold as follows: After preparing an asset inventory, we review the testator’s will and seek agreement with potential heirs. We calculate their tax burden, define a strategy for its optimisation, and proceed to its execution. Moreover, we often monitor – upon request – the long-term implementation of the overall conditions.

A valuable tip: Lifemap® is a useful tool to deal with inheritances. As your tax consultant, we shall compile all relevant documents, from the will to bank statements to insurance policies. All documents in one place and one less thing to consider!

Succession consultancy services:

  • Preparation of asset inventory including private balance sheets
  • Development of a tax-optimised gift / inheritance model that is primarily oriented to the wishes of the donor / testator
  • Gift tax assessment of companies and other assets
  • Complete coordination of the implementation of civil law implementation, with the involvement of suitable experts from our network
  • Complete declarations
  • Administration of all relevant inheritance-related documents (Lifemap®)
  • Implementation of the last will as executor

Who determines the value of a company?

As an entrepreneur, you will have full knowledge of your company’s assets and liabilities. But, even if the company is more than the sum of its parts, what is the value of the vehicle fleet, machinery, real estate, patents and all other assets? The answer to this question is key when it comes to sales or acquisitions. 

Whether buyers or sellers, both sides should receive or pay their dues through a transparent acquisition process, and a fair, market-based purchase / sale price. We can support this process from the initial analysis to the moment contracts are signed. Needless to say, we shall start even earlier for sales operations. Through appropriate measures such as restructuring and strategic balance sheet planning, we prepare the sale in the long term. Whether we are looking for a company’s purchase price, a purchase / sale or a merger, our network remains at your disposal.

Although the above-mentioned processes always involve several people with their specializations and competences, you are assigned a single, central contact person, who coordinates all service providers for you. 

Sample of services for sales, mergers and acquisitions:

  • Set up a digital data source for all relevant documents
  • Complete verification (tax and financial due diligence) for the buyer, support to the seller during due diligence
  • Support for the purchase model development
  • Determination of the purchase price based on agreed models
  • Moderation of price negotiations
  • Supporting the implementation of civil law from the creation of the contract to the notarial certification
  • Post-transaction: Monitoring / supervision of the agreement IN OPERATION

Business consultancy: Optimize the entire enterprise

No one is so well suited to provide business advice for your company as your tax consultant. Further to our intimate understanding of your figures, data, and our professional skills, we have the necessary distance to always keep the entire picture in sight. 

Of course, any good strategy stands on thorough, all-round analysis. Accordingly, we shall gladly support you in setting up or restructuring your controlling processes. On the basis of reliable data, we carry out target / actual comparisons, capital requirement planning, variance analyses, cost accounting and cost centre accounting, which can be used, for example, to monitor the success of individual branches or departments. Using this information as a starting point, we conduct your financial planning, i.e. the planning of income, liquidity and balance sheet, as well as of every other business component. Thus, we can directly establish or optimise new structures as part of your business processes, either as an external service provider or as an interim manager. Our services cover the planning, execution and development of company acquisitions and sales, as well as company mergers. Are you looking for a company successor? If so, we can help.

A selection of our services:

Interim management: Business advice when and where needed.

In our digitized world, it is irrelevant whether intellectual services are provided on premise; ultimately, it is the outcome that matters. While this is certainly true for employees working remotely or from home, our offering in this respect looks somewhat different. Understand the advantages of interim management directly in your company.

Especially in exceptional situations and far-reaching changes such as company acquisitions, rebuilding of departments, branch or subsidiary closing, product launches, or the search for a SUCCESSOR, managing the process directly at your site might prove beneficial.

In this context, face to face communication and dialogue become more direct and easier, and this immediacy shortens decision-making cycles. What is more, employees can attribute any decisions we make together to actual persons, which lends legitimacy to the whole process.

We can thus discuss, directly on-premise, financial planning, the establishment / restructuring of the controlling department, or simply a compensation for unexpectedly terminated employees. This form of business consultancy includes personnel responsibility, for instance, when restructuring or optimising your organisation. 

Making profits as a non-profit organisation: Reconciling both realities

The non-profit status is a meaningful institution, which can be roughly described as follows: Anyone doing something for the common good receives tax advantages on the part of the State in return. To be sure, the legislator pursues a whole series of non-profit purposes from SPORTS to international understanding; however, standards for interpreting what may and may not constitute a non-profit organization prove much stricter.  

And non-profit organisations whose status is revoked by the Tax Office can face significant economic difficulties including bankruptcy. In such cases, for example, the Tax Office demands the retroactive settlement of corporation tax. Organisations that operate as a non-profit, limited liability companies (gGmbH), therefore, must meet a number of requirements e.g., from the wording of their statutes to day-to-day operation. How are profits generated, how are assets and reserves formed, how can we establish a clean separation between non-profit and commercial operations? For example, these questions must be specifically addressed for organisations such as retirement homes, which reinvest money in real estate to benefit from the rental income, or which operate a coffee shop for their residents and hire staff.

As tax consultants, we support you from the foundation of the non-profit organization / association to its full development and regular operation. We provide legal advice through experienced lawyers from our network.

Services for non-profit companies and associations (extract):

  • Consultancy in establishing non-profit organisations, in particular family foundations
  • Tax consultancy regarding the drafting of company agreements and statutes
  • Consultancy of on asset and reserve formation
  • Tax consultancy and advice on legal certainty in the current business (accounting, input tax deductions, VAT specifics, etc.)
  • Fulfilment of tax declarations, preparation of annual financial statements as well as asset and resource utilization statements
  • Legally compliant handling of sponsorship funds, public grants, donations and membership fees
  • Restructuring measures (e.g., outsourcing in service companies)
  • Support during tax audits, appeals and complaints before tax courts

Succession consultancy: Leaving your life’s work in good hands

As they start thinking about succession, owners have usually worked for decades in their company. This is particularly true for family businesses, where owners have great emotional attachment to their organisations. And this should come as no surprise, as it is their life’s work. We ensure a smooth delivery to the next generation, either through a gift during the owner’s lifetime, or via a testamentary decision.

In our experience, successful succession consultancy must look at the process as whole, from all possible angles. The will of the potential testator is paramount throughout the entire planning phase, and making his or her wishes come true remain our top priority. To avoid misunderstandings, nonetheless, the entire owner’s family must be included. In this scenario, we strive to reconcile distinct positions and ideas. In our experience and according to all parties involved, our mediation avoids inheritance disputes.

Generally speaking, succession consultancy engagements unfold as follows: After preparing an asset inventory, we review the testator’s will and seek agreement with potential heirs. We calculate their tax burden, define a strategy for its optimisation, and proceed to its execution. Moreover, we often monitor – upon request – the long-term implementation of the overall conditions.

A valuable tip: Lifemap® is a useful tool to deal with inheritances. As your tax consultant, we shall compile all relevant documents, from the will to bank statements to insurance policies. All documents in one place and one less thing to consider!

Succession consultancy services:

  • Preparation of asset inventory including private balance sheets
  • Development of a tax-optimised gift / inheritance model that is primarily oriented to the wishes of the donor / testator
  • Gift tax assessment of companies and other assets
  • Complete coordination of the implementation of civil law implementation, with the involvement of suitable experts from our network
  • Complete declarations
  • Administration of all relevant inheritance-related documents (Lifemap®)
  • Implementation of the last will as executor

Who determines the value of a company?

As an entrepreneur, you will have full knowledge of your company’s assets and liabilities. But, even if the company is more than the sum of its parts, what is the value of the vehicle fleet, machinery, real estate, patents and all other assets? The answer to this question is key when it comes to sales or acquisitions. 

Whether buyers or sellers, both sides should receive or pay their dues through a transparent acquisition process, and a fair, market-based purchase / sale price. We can support this process from the initial analysis to the moment contracts are signed. Needless to say, we shall start even earlier for sales operations. Through appropriate measures such as restructuring and strategic balance sheet planning, we prepare the sale in the long term. Whether we are looking for a company’s purchase price, a purchase / sale or a merger, our network remains at your disposal.

Although the above-mentioned processes always involve several people with their specializations and competences, you are assigned a single, central contact person, who coordinates all service providers for you. 

Sample of services for sales, mergers and acquisitions:

  • Set up a digital data source for all relevant documents
  • Complete verification (tax and financial due diligence) for the buyer, support to the seller during due diligence
  • Support for the purchase model development
  • Determination of the purchase price based on agreed models
  • Moderation of price negotiations
  • Supporting the implementation of civil law from the creation of the contract to the notarial certification
  • Post-transaction: Monitoring / supervision of the agreement IN OPERATION