Case study: Helped a multinational retailer build a tax-efficient operating model

At Menzies, we work closely with international retail groups to develop tailored, forward-thinking solutions that optimise global operations. This case study outlines how we have supported a multinational retail client in designing and implementing a tax-efficient operating model that aligns their financial and operational processes with international regulatory requirements.

By leveraging our expertise in transfer pricing, customs duty compliance, supply chain modelling and tax planning, we delivered a streamlined structure that not only supported compliance across jurisdictions but also created opportunities for substantial cost savings and long-term operational efficiency.

1) For a group operating in multiple countries, we highlighted the client’s current flow of goods against the proposed flow of goods under their new operating model to illustrate where potential tax and customs duty savings could be achieved.

2) We then advise on a tax efficient “future proofed” transfer pricing model, taking into consideration their expected operational changes. This included documenting a full Functional Analysis Review (FAR) which looks at key functions, assets and risks in each entity/country, and advising on a tax efficient model for operating in the EU.

3) We offer full end to end transfer pricing services, including benchmarking intercompany product prices since the transfer price was to potentially be used as the basis for customs valuation.

4) We then advised on the various valuation methods for customs duty purposes when moving goods around the world. This included supporting groups in selecting the most appropriate method for each jurisdiction to minimise costs and ensure compliance.

5) We recommended processes for monitoring and managing customs duty procedures to ensure that any under or over payments of customs duty can be minimised. This is also to ensure our client could demonstrate well-controlled processes in the event of enquiries from tax authorities.

6) We worked with our HLB Network firms across the world to ensure that all local law requirements, including compliance and reporting requirements, were understood and appropriately planned for.

7) Wider tax issues were considered so that the customs duty and transfer pricing issues were not looked at in isolation. These included VAT and sales tax, Permanent Establishment risks, and withholding taxes on cross-border payments.

Our holistic approach enables multinational groups to successfully navigate the complexities of cross-border operations. By combining technical expertise, global coordination, and strategic tax planning, we have helped groups achieve compliance, unlock savings, and build a framework for future growth. This case study demonstrates our commitment to delivering integrated, value-added solutions to meet the unique needs of multinational businesses.