HSP Global Assessment

Clients with existing overseas operations often engage High Street Partners because they are unsure of the necessary compliance requirements and whether they are being met for the countries in which they already operate. Now that Sarbanes-Oxley requires management to assert annually that their internal controls over financial reporting and compliance are effective, uncertainty regarding overseas compliance entails a risk no company can afford.

For clients who would like a health check, or who are in need of a compliance risk review, we offer HSP Global Assessment™. This fixed-price service - recommended within the first 12 to 18 months of setting up operations in a new territory - provides a comprehensive review of international subsidiaries or branch offices. Whether you operate in a single country or in many, our team will efficiently identify your tax, payroll, statutory and legal filing requirements and evaluate your compliance with those requirements, instructing you on the most critical needs in each country and identifying best-practice approaches for your consideration. If our review uncovers areas that need attention, we will provide a clear and specific change-implementation plan.

The risks of non-compliance are often significantly greater than one might expect. Two areas in particular where we often find insufficient compliance and potential economic risk include:

• the unwitting creation by the operating parent of a permanent establishment (PE) in country
• using local resources in a “contractor” versus an employee capacity. Many overseas tax authorities view this as a way foreign companies try to avoid their social and employment responsibilities.

We can help determine your risk factors and address them as needed. A compliance review like that offered by HSP Global Assessment not only provides an opportunity to address deficiencies before a tax audit, for instance, thereby reducing possible penalties and interest exposures, but also demonstrates to local tax authorities that your company is proactively managing its operations in their country and acting in good faith.