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Tax Offerings for the Travel, Hospitality & Leisure Industry
In our work with leaders in the travel, hospitality, and leisure industry, our clients consistently mention a number of major trends that impact their businesses today from a tax perspective. Among the most notable are: Merger and acquisition (M&A) activity; Emerging markets; And, An increase in mixed-use properties. These issues have both compliance and planning implications that cannot be ignored. Although addressing them all can be a tough balancing act, doing so may unlock hidden value for your organization. Deloitte can help.
- Featured insights
- Managing M&A tax implications
- Strategies for emerging markets
- Mixed-use properties
Managing M&A tax implications
Mergers, acquisitions, and consolidations have caused constant, rapid change on a number of fronts in the travel, hospitality, and leisure industry. Driven by demographic trends and the growth of emerging markets, this activity has benefited from a healthy influx of investment, both from the capital markets and private equity investors. At the same time, these activities present a host of tax implications. Deloitte can help throughout all stages of an M&A transaction. Many companies benefit from an earnings and profits or a stock basis study to evaluate the structure and profitability of a potential capital transaction – especially when deals have cross-border components. We also can help with the international, federal, and state restructuring issues that are common with cross-border transactions.
Tax strategies for emerging markets
Emerging markets in China, India, Latin America, and the Gulf States represent exciting potential new opportunities for development. Insightful tax assistance can help companies prepare for — and compete in — this international marketplace. Changes in a company’s international legal tax structure can impact E&P, tax basis, and branch transactions. Deloitte can assist with the calculations that support your decisions. Bringing in resources such as our International Tax Quantitative Consulting Services, we can help you understand the tax impact of the structure you select for your business and deal with compliance, regulatory, and reporting issues for multiple state and national jurisdictions.
Global Enterprise Methods and Systems (GEMS) tax solutions
Our Global Enterprise Methods and Systems (GEMS) specialists can help you remap transaction flows to evaluate whether you can prevent income from being realized unnecessarily in high-tax jurisdictions. Your company may also benefit from customs, duty, and transfer pricing assistance, as well as support with the tax implications and nuances of cross-border franchising and management contracts. With expansion into new markets also comes other potential tax savings considerations. We can also help you understand the nuances of sales and use and value-added taxes, often identifying potential tax savings and operational improvements that can help you reduce the risk of overpaying these taxes in the future.
Tax implications for mixed-use properties
For many companies in the travel, hospitality, and leisure industry, The growing prevalence of mixed-use properties represents another potential avenue of increased revenue and tax savings. Balancing brand standards, cost allocation, management of amenity creep, and the volume of inventory executives have many business issues to consider with this trend. Key among these is a tax-aligned business strategy. Informed tax guidance may save companies money as well as administrative burden. Will your construction or conversion of a mixed-use facility qualify for a deduction? Because we grasp the critical nuances of Section 199 for condominiums and timeshares, we can give you knowledgeable insights. Did you overpay your sales and use taxes associated with these activities? Our reviews and reverse audit can help find out the answer.