The financial services sector is deeply familiar with regulation. However, despite this in-depth knowledge many players in finance and commodities have limited expertise when it comes to sales tax exemption certificates. This is a challenge and potential liability. Honoring a tax-exempt transaction without the proper documentation may result in a sales tax assessment.
Risk of Tax Assessment for Exempt Sales
Exempt sales of commodities are a routine occurrence for financial services companies. As most deal with large sums of money, it can appear to be a modest risk if the documentation that supports an exempt sale is missing or incomplete. However, the audit process and the potential impact are not to be taken lightly. Tax authorities use a sampling method to determine which sales are not justifiably tax exempt and extrapolate accordingly. This means that even just a few missing pieces of paper can result in a very expensive sales tax assessment.
Automated Solutions Designed to Reduce Risk
GMG CERTifyTax is designed to take away this burden from financial services companies and their team members. Our solution is automated, with the individual tax rules for each jurisdiction built into the software. As a result, there is no need for dedicated individuals to manually review exempt sales and update them accordingly. The automated system reduces human error. It also prevents the need to employ tax experts on your staff. Our solution gives you what you need to reduce your audit exposure and save money.
GMG CERTifyTax easily integrates with your existing financial services procedures and technology. You have a solution that is easy to implement, easy to maintain, and is backed by people who understand exempt sales and the unique challenges of the financial services and commodities industries.
Dedicated Professionals with Industry Expertise
What sets us apart is our team. As financial service professionals, you understand the differentiator that is subject matter expertise. In addition to superior technology, we have a full staff of people who know law, tax, technology, and have experience in the financial services sector. When you partner with GMG CERTifyTax, you gain an asset that helps you protect your profits.
Do you know your sales tax exposure related to exempt sales? If not, we can help with no commitment.
Call (914) 798-9990 to speak with our experts or request information from our sales team by completing the form below.