Case Study: Seamless International Tax Services for a Global Online Retailer
October 31, 2023
About the Client:
Aprio engaged with an online retailer that specializes in selling “surprise boxes” through its virtual platform. Each box is filled with a random assortment of merchandise and products for customers to enjoy.
The Challenge:
The client was in the process of launching a new online business and needed professional guidance to establish its business structure and navigate sales taxes, income taxes and bookkeeping. The client’s chief financial officer and legal counsel were not based in the United States and were unfamiliar with US tax regulations.
On top of these needs and concerns, the client’s management team set a tight deadline for launching its new business. Due to the unique nature of its work and products, the client recognized it would face tax issues that lacked clear, established guidance from the IRS.
The Solution:
After a full assessment, Aprio identified several holistic services that could suit the client’s needs. Aprio’s team strategically prioritized the services the client required and identified leaders from several disciplines across the firm to address all the client’s challenges concurrently. The team flagged the most urgent matters first to meet the client’s go-live deadline.
Ultimately, Aprio developed a cross-border legal structure and operating model, which addressed the client’s foreign ownership and overseas operations.
The Result:
Leveraging our comprehensive suite of international tax services, Aprio proposed a global structure that significantly reduced the client’s effective US tax rate from 63.7% to approximately 35%.
This case study illustrates how Aprio can serve as a single-source financial growth partner for international companies, including startup companies with new business aspirations.
Our International Tax team helps companies safeguard their international investments, while implementing compliant international tax strategies that allow them to minimize risk and tax dollars paid.
If you are interested in expanding across borders and partnering with Aprio to navigate US
tax compliance, contact us today.
Jed Rogers
International Tax, Partner
jed.rogers@aprio.com
770.353.3184
Yan Jiang, CPA
International Tax, Director
yan.jiang@aprio.com
240.630.1032
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About the Author
Jed Rogers
Jed is a Tax Partner at Aprio who counsels clients on international tax matters and M&A transactions. Jed has a deep knowledge of federal tax law and transactional tax planning, including serving more than a decade as in-house counsel for technology corporations and as a member of multinational professional services firms. He routinely advises multinational clients on a broad array of inbound and outbound U.S. and international jurisdiction tax matters, including repatriation planning, international tax credit planning, holding company and financial structures, foreign exchange matters, internal reorganizations and post-acquisition integrations. His background is invaluable as he works with clients to develop tax saving strategies.
Yan Jiang
Yan helps individuals and businesses with cross-border activities optimize their global structure. His clientele include entrepreneurs, investors, family offices and fiduciaries in various industries, including technology, manufacturing, distribution, wholesale, retail, biotech and services. The size of his clients ranges from start-ups to mid-sized companies with revenues up to $500M. Yan specializes in cross-border mergers and acquisitions, international business structuring and global investment tax planning.
