ESG readiness

No matter where you are on your ESG journey, Deloitte’s tax and A&A teams can advise you as you define and establish an ESG strategy that includes tax considerations from the outset.

Our businesses work together to advise on ways to identify potential tax-savings opportunities that can help fund broader ESG commitments, impact disclosures, and embed sustainability throughout the value chain.

Having one organization to advise you on tax and assurance matters relating to your ESG strategy can give you a more holistic, end-to-end perspective of the impacts on your business: It can drive efficiencies, reduce redundancies, and lessen the burden on your team. That means you can spend less time chasing changing regulations and frameworks and more time focusing on growing your future sustainability, climate, and equity strategy.

• Decarbonization and the path to net zero As companies focus on plans and commitments to decarbonize, Deloitte can advise on approaches to measure, operationalize, fund, and communicate the path to net zero.
• Making quality and transparent disclosures With mandatory global disclosure requirements and evolving transparency expectations by various stakeholders, Deloitte can advise companies as they develop a comprehensive governance structure and reporting strategy, that considers tax related inputs and requirements, including stakeholder and regulatory demands for dedicated tax governance and tax transparency reporting.
• ESG funding insights The Inflation Reduction Act includes the largest sustainability investment in US history. Deloitte can advise on ways to identify potential tax incentives and credit opportunities to help fund sustainability-related investments and offset the cost of transitioning assets and operations to use clean energy.

Simplified audits with potential tax benefits

Integrated permissible tax* and audit services—which are a requirement among attest clients—could result in certain advantages. Advantages of a collaboration between Deloitte's tax and audit team could include streamlined audit procedures, or a reduced burden on your team and internal resources.

Get back to focusing on your day-to-day priorities instead of getting shuffled between multiple service providers. Consider the possible benefits of leveraging an aligned organization for both tax and audit services:

• Efficient delivery of services Working together allows us to leverage our knowledge of your business and can result in streamlined communication, efficient delivery, and meaningful insights, all while reducing duplicative costs.
• Tax and audit efficiencies When tax is engaged to provide tax compliance or other tax planning services, then you are able to provide information that can be utilized by the audit team for audit purposes and the tax team to prepare tax returns. Working together reduces your communications back and forth between service providers and can free up time for internal resources.
• Efficient risk assessment The audit process requires a detailed risk assessment to determine the scope of audit procedures to be performed. With Deloitte preparing the tax returns (and/or providing other tax advice throughout the year), risk assessment can be more efficient and would generally require less of your team’s time to provide input.

*We may be unable to provide certain services to audit clients (including affiliates) of Deloitte and Touche LLP

IPO readiness

The decisions made today could impact your path to an effective IPO in the future.

By engaging Deloitte’s accounting and reporting advisory professionals together with our tax professionals, our synergies can provide break through information silos and mitigate inefficiencies of coordinating with multiple providers.

As a result, we can provide nearly seamless financial accounting reporting, and tax advisory services throughout the IPO journey. From providing advice with the development of your IPO roadmap to providing insights on IPO execution and post-transaction compliance and growth, we can advise you on how to streamline the process at a speed and scale tailored to your business, so you’re ready for the next stage of growth.

• Equity-based awards may accelerate before an IPO and new award plans will likely be established post-IPO, which may result in nuanced accounting and tax considerations. We can provide recommendations on the analysis of the appropriate classification of awards from a financial reporting and tax lens, as well as consider pre- and post-tax impacts, such as golden parachute payments, limitations on executive compensation deductions, and formulating new award plans that meet your organizations needs across multinational jurisdictions.
• Tax and financial reporting regulators are requiring increased transparency to financial statement data, jurisdictional data, and internal processes and controls. To operate effectively, financial reporting and tax will need to establish adequate governance practices. We create a plan of action which provides insights to assist you in managing interim and year-end reporting requirements, ultimately enhancing the availability and accuracy of information used for financial reporting and tax purposes. With jurisdictions increasingly relying on corporate minimum taxes to be based on pre-tax numbers (e.g., OECD’s Pillar II guidelines and the US Corporate Alternative Minimum Tax) the relationship between tax and finance departments may need firm enhancements, especially for large multinational enterprises.

Solve for the future

When engaging with blockchain, decentralized finance, and using digital assets, it may help to have tax, A&A services that are in alignment from the start.

Working with a coordinated team that has a 360-degree view of your business could help you navigate this complex and fast-changing regulatory environment.

No matter where you are on the digital asset spectrum, Deloitte’s professionals have been innovating and advising clients on how they can navigate this transformative technology for over a decade.

We’ll help you iterate in the design of new business models with a broad range of regulatory and operational considerations by:

• Assessing bold new business models Businesses are using blockchain and digital assets to enable new business models with unparalleled transformative impact. Having all our competencies represented early helps you iterate thoughtfully and efficiently.
  
  
  • Perspectives on which blockchain protocol to use or if a blockchain is even the appropriate technology choice vary based on fact and circumstance. Our teams can lend insight to the strategic direction of the business model and enhance the use of blockchain if it is the chosen tech.
  • Adequate identification of these new transaction types is critical for accounting and tax purposes, and it may represent something which is new to the industry. The use of digital assets may call into question what the asset represents, and it may be different for accounting than for tax purposes. Our teams apply existing rules to support the treatment of the transaction or the asset for accounting and tax purposes, with consideration of revenue recognition, sourcing, valuation, character, etc.
  • Risk and control frameworks are critical with unique considerations for businesses that frequently expand to reliance on new vendors in the ecosystem. Our teams in advisory have the experience to help evaluate risks, design the controls, and evaluate vendors.

A coordinated, consistent approach

When Deloitte provides both audit and tax services, we can help reduce the reporting burden on portfolio company management teams by leveraging the synergies between our tax and audit teams. Our tax specialists are utilized in the audits of financial statements, so the audit team can collaborate with tax specialists who already know your business.

From providing leading practices on internal controls to advising as you prepare for an IPO, our tax and audit professionals may help support insightful decision making by management and private equity investors. We can help you make sense of your finances, limit operational inefficiencies resulting from using multiple professional service providers, and enhance financial reporting to help you get ready for the next stage of growth.

• Limit surprises By leveraging our audit and tax teams together, you could benefit from our holistic approach with insight into the audit risk assessment process which can accelerate earlier identification, communication, and resolution of potential issues, reducing the risk of surprises (e.g., divergent views on tax positions) or other unexpected errors and improving the financial statement close process.
• Reduce learning curve on strategic transactions Using an integrated tax and audit team allows Deloitte to leverage our collective knowledge of your business and get involved earlier in the process. Our deep experience in serving private equity portfolio companies allows us to proactively assist you in addressing the needs of your investors in an efficient manner so you can anticipate the requirements of your investors, save time, and position the company for its next stage of growth.

A more sustainable approach to SOX controls

Does your SOX program go beyond a yearly check-the-box approach? If not, it could lead to missed tax opportunities, cost inefficiencies, or even compliance issues.

Deloitte’s Audit & Assurance and Tax professionals bring their knowledge and experience in accounting, reporting, and tax to enhance your suite of financial reporting controls. Our forward-thinking approach is flexible, scalable, and tailored to your business.

Together, we can provide seamless coordination of services to help bridge the disconnect between stakeholders and reduce the burden on your team’s resources for a sustainable, ongoing compliance program.

• Multi-disciplinary skill set Our combination of tax, audit and controls advisory professionals can work seamlessly together in an efficient approach to incorporate technical tax control considerations while teaming with professionals with a risk and controls governance mindset.
• Risk management and scoping Our cross functional skill sets can bring a risk-based focus to both focus on risk mitigation, and rationalize and standardize where possible so that time is spent on areas that are critical to the organization.
• Operating model optimization As we advise how to modernize and streamline your controls framework, we consider how to enhance the operating model of the tax function with a lens on people, process, and technology.