Geoffroy Galéa’s Post

🌍 𝐔𝐊 𝐓𝐚𝐱 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲 & 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 – 𝐖𝐡𝐲 𝐓𝐡𝐞𝐲 𝐌𝐚𝐭𝐭𝐞𝐫 𝐍𝐨𝐰 𝐌𝐨𝐫𝐞 𝐓𝐡𝐚𝐧 𝐄𝐯𝐞𝐫 In today’s global economy, businesses are under increasing scrutiny—not only from HMRC but also from investors, regulators, and the public. Having a clear Tax Strategy and robust Transfer Pricing (TP) policies is no longer optional—it’s a cornerstone of good governance and sustainable growth. 📑 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐚 𝐓𝐚𝐱 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲? For large UK groups (with revenues or balances above certain thresholds), publishing a Tax Strategy is a statutory requirement under the Finance Act 2016. It covers: Approach to tax risk management Attitude to tax planning Level of risk acceptable Relationship with HMRC 💶 𝐖𝐡𝐲 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 𝐌𝐚𝐭𝐭𝐞𝐫𝐬: Transfer Pricing governs how profits are allocated between different entities of the same group across borders. Getting it wrong can mean: Costly penalties Lengthy disputes with HMRC Damaged corporate reputation ✅ 𝐁𝐞𝐬𝐭 𝐏𝐫𝐚𝐜𝐭𝐢𝐜𝐞𝐬: Align TP policies with OECD Guidelines Regularly benchmark intercompany transactions Keep robust documentation ready for HMRC review Ensure policies reflect the group’s real commercial substance ⚖️ 𝐓𝐡𝐞 𝐁𝐢𝐠𝐠𝐞𝐫 𝐏𝐢𝐜𝐭𝐮𝐫𝐞: In an era of ESG reporting and responsible business conduct, transparency in tax is becoming part of a company’s brand value. A well-defined Tax Strategy demonstrates integrity, accountability, and long-term thinking. ✨ 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲: Ignoring tax governance is no longer an option. Companies that embrace proactive tax strategies and transfer pricing compliance are not just avoiding risks—they’re building trust. 👉 Question for You: Do you see tax transparency as a compliance box to tick—or as a tool to build corporate reputation and investor confidence? 💬 Share your views in the comments—I’d love to hear your perspective! #TaxStrategy #TransferPricing #UKTax #HMRC #InternationalTax #CorporateGovernance #TaxAdvisory #SustainableGrowth #BusinessLeadership #TaxTransparency

VAT Return: The Story Behind Every Submission If you think filing a VAT Return is about entering numbers on the portal, you probably haven’t met a tax professional during filing week. Every VAT return feels like a mini project - a blend of investigation, analysis, patience, and caffeine. It starts with understanding each transaction - what’s taxable, what’s exempt, and what’s just… confusing! Then comes validating tax treatments, identifying reverse charge transactions, documentation and reconciling output and input VAT like a detective trying to solve a financial mystery. Next, you move to revenue reconciliations, ensuring every AED in sales and purchases aligns with ledgers, trial balances, and sometimes even with your prayers! Then there’s the fun part - dealing with advances, inter-company entries, bad debt adjustments, and exchange differences… because why should life be simple? And finally, after endless reviews, Excel crashes, and “just one last check,” you reach the FTA portal - where you enter figures, hold your breath, and hope the internet doesn’t disconnect right before submission. It’s not punching numbers; it’s storytelling through spreadsheets - a story of patience, precision, and persistence that only finance and tax professionals truly understand. So next time someone says, “VAT Return? That’s easy,” just smile… and hand them your reconciliation file. Let experience do the explaining #UAEVAT #TaxProfessionals #FinanceHumor #ReconciliationSeason #FTA #TaxLife #FinanceCommunity

DID YOU KNOW YOU CAN RECLAIM VAT ON EXPENSES FROM BEFORE YOU REGISTERED? Even if your business wasn’t VAT-registered yet, you may still be able to get back VAT on certain purchases – and it can give your cash flow a welcome boost. Here’s what you need to know: ▪️Goods – reclaim VAT on items you still own that were purchased up to 4 years before registration. ▪️Services – reclaim VAT on professional services used for your business up to 6 months before registration. ▪️Proof matters – keep VAT invoices and receipts. No proof, no claim. ▪️Business use only – personal expenses don’t qualify. Eligibility: ▪️Goods you no longer have at registration can’t be claimed. ▪️Invoices must be correct and show VAT clearly. ▪️Only expenses strictly for business purposes are eligible. ▪️Reclaiming pre-registration VAT on your first VAT return can sometimes help with the initial cashflow requirements. If you want to make sure you’re claiming everything you’re entitled to safely and HMRC-compliantly. Our team can guide you every step of the way. hashtag #vat #prevatregistration #taxes #hmrc #accountants #london #taxadvisor #smallbusinessaccounting

🌍 Permanent Establishment and VAT — recurring issues in cross-border structures At Scornik Gerstein LLP, we continue to observe recurring issues concerning Permanent Establishment (PE) and VAT implications for entities operating between the UK and other jurisdictions. Some of the most frequent include: • Assuming that remote work or a registered office abroad removes UK VAT obligations. • Creating an unintended Permanent Establishment by having a director or consultant habitually working or signing contracts from another country. • Overlooking where the business is effectively managed and controlled before incorporating or expanding abroad. Each of these factors can result in unexpected VAT and corporation tax liabilities, often across more than one jurisdiction. Before entering into new contracts or relocating operations, it is important to review: ✔️ Who is carrying out the activity ✔️ From where it is being carried out ✔️ And under which entity A brief review at the outset can prevent significant tax and compliance exposure later on. #Tax #VAT #PermanentEstablishment #CorporateLaw #InternationalBusiness #CrossBorder #UKTax

🌍 The Global Tax Tightrope: Are Your Cross-Border Prices Audit-Proof? The bedrock of international taxation is not just compliance, but the Arm's Length Principle (ALP). For multinational enterprises (MNEs), the ALP isn't a suggestion—it’s a legal necessity that dictates how nearly 70% of global trade is priced. If your cross-border intercompany transactions don't meet this standard, you're not just risking penalties; you're challenging the sovereignty of global tax authorities. Understanding the Arm's Length Principle is critical because it asks a single, complex question: Would unrelated, independent parties, acting in their own self-interest, have agreed to this exact price or term? Failure to document and substantiate this can lead to: • • Double Taxation: Two or more countries claiming tax on the same income. • • Significant Penalties: Driven by increasing global scrutiny and mandatory disclosure rules (like the OECD’s BEPS initiatives). • • Reputational Damage: Signaling to investors and regulators a lack of robust financial governance. To ensure your transfer pricing policies stand up to scrutiny, focus on these core elements: • • Functional Analysis: Clearly documenting who does what (functions), who bears the risks, and who owns the assets in each intercompany transaction. • • Comparable Data: Relying on the most reliable, contemporaneous, and publicly available data from genuinely independent parties. • • Robust Documentation: Transfer Pricing files must be comprehensive, updated annually, and ready to present upon request, not built retroactively. The global environment is shifting from simply complying to demonstrating transparency and commercial rationality. Don't wait for an audit. Proactive transfer pricing governance is the cheapest insurance and the surest path to tax certainty. Is your organization ready to defend its intercompany pricing on the global stage? Let us know your biggest challenge in the comments. #InternationalTax #TransferPricing #ArmLengthPrinciple #TaxCompliance #GlobalTax

DID YOU KNOW YOU CAN RECLAIM VAT ON EXPENSES FROM BEFORE YOU REGISTERED? Even if your business wasn’t VAT-registered yet, you may still be able to get back VAT on certain purchases – and it can give your cash flow a welcome boost. Here’s what you need to know: ▪️Goods – reclaim VAT on items you still own that were purchased up to 4 years before registration. ▪️Services – reclaim VAT on professional services used for your business up to 6 months before registration. ▪️Proof matters – keep VAT invoices and receipts. No proof, no claim. ▪️Business use only – personal expenses don’t qualify. Eligibility: ▪️Goods you no longer have at registration can’t be claimed. ▪️Invoices must be correct and show VAT clearly. ▪️Only expenses strictly for business purposes are eligible. ▪️Reclaiming pre-registration VAT on your first VAT return can sometimes help with the initial cashflow requirements. If you want to make sure you’re claiming everything you’re entitled to safely and HMRC-compliantly. Our team can guide you every step of the way. #vat #prevatregistration #taxes #hmrc #accountants #london #taxadvisor #smallbusinessaccounting

Recent developments in transfer pricing and VAT are increasing scrutiny on how businesses structure their intercompany transactions. Our latest analysis explores how adapting OECD-aligned methodologies, maintaining strong documentation, and ensuring compliance with both VAT and transfer pricing rules can help companies reduce risk and enhance tax efficiency. Staying ahead of these changes is essential if you operate across borders or manage complex group structures. Learn more: https://lnkd.in/ea93ntSt

🌍 Driving Transparency Through Technology in Tax Standard Audit File for Tax (SAF-T) is a game changer — reducing data discrepancies and information gaps in transfer pricing audits and other complex international tax areas. As a Tax Technologist with a Diploma in Tax Technology (CIOT, UK), I’m passionate about how digital standards like SAF-T can enhance tax compliance, efficiency, and trust across global jurisdictions — especially in forward-thinking hubs. #TaxTechnology #SAFT #DigitalTax #TransferPricing #Luxembourg #FutureOfTax #InnovationInTax #CIOT

Mastering the Three Pillars of Transfer Pricing Documentation Transfer pricing compliance feels like navigating a maze, but clarity comes when you focus on the right structural anchors. According to OECD guidelines and global best practices, robust documentation rests on three foundational pillars: the Master File, the Local File, and the Country-by-Country Report (CbCR). Here’s the scoop: The Master File: This is your global blueprint that outlines the multinational group’s structure, business model, intangibles, financing, and overarching transfer pricing policies. Think of it as your roadmap for tax alignment across jurisdictions. The Local File: This zooms in on the specifics — detailed info about intercompany transactions within each jurisdiction, from pricing choices to contracts and financial data. This keeps local tax authorities happy with transparency. The Country-by-Country Report: Your global snapshot. It presents financial and tax data across all operating countries, helping authorities assess risk and understand where value is created. By disclosing profit allocation and tax data by country, multinationals support transparency and compliance. It’s not just reporting, it’s responsible business. Why does this matter? Because solid documentation isn’t just a compliance checkbox anymore. It’s a strategic tool for managing risk, building trust, tax transparency, and ensuring audit readiness. When done right, it strengthens governance and positions your tax function as a value driver. Ready to turn documentation into a competitive edge? Let’s talk — the three pillars are waiting. #TPDocumentation #TransferPricingCompliance #TransferPricingStrategy #GlobalTaxCompliance #MultinationalTax #TaxTransparency #CbCR #MasterFile #LocalFile #IntercompanyTransactions #CrossBorderTax #TaxTechnology #TaxGovernance #GlobalTaxStrategy #TaxDocumentation

VAT isn’t just 5%… it’s much deeper than that. Many businesses treat VAT like a number that just needs to be added to the invoice. But the truth is — VAT can actually be a strategic tool when you understand how it works. When you start looking at invoices and expenses from a tax perspective, you begin to spot opportunities to improve cash flow and reduce unnecessary payments. Not every “VAT paid” has to stay as an expense — sometimes you can recover or offset it if your system is properly managed. 💡 In short: Those who see VAT as a burden usually lose part of their profit. Those who see it as a system of control gain better financial visibility and smarter decisions. As an auditor, I see it every day — companies that understand VAT always have stronger financial control #VAT #Tax #Finance #UAE #Accounting #BusinessMindset