Tax-efficient sourcing and supply-chain management

2013 ◽  
Vol 53 (2) ◽  
pp. 447
Author(s):  
Michael Gillin ◽  
Jonathon Peacock
Keyword(s):  
Supply Chain ◽  
Transfer Pricing ◽  
Low Cost ◽  
Value Added ◽  
Tax Planning ◽  
Tax Rates ◽  
Supply Chain Risk ◽  
Absolute Value ◽  
Flexible Framework ◽  
The Cost

With such significant growth in the LNG industry and the broader energy and natural resources sector, the supply-chain risk and the cost of sourcing capital equipment and materials is increasingly difficult to manage. Many organisations are beginning to consider the merits of moving to a tax-efficient supply chain and procurement model, both through sourcing from a low-cost country and also centralising purchasing and supply operations in a tax-efficient location. Tax-efficient sourcing integrates supply chain and procurement-operating model design with tax planning to deliver significant cost reductions and profit increases through centrally controlling procurement operations. The consideration of the most efficient tax structures to support sourcing and distribution of equipment also delivers. Centrally controlled strategic and tactical supply chain and procurement operations in a tax-efficient location support an organisation in: realising benefits through leveraging scale in operations and procurement; designing a flexible framework that can be used to decide which categories of spending are managed globally, regionally, and locally;and, the acceleration and sustainability of significant procurement savings delivery from low-cost locations. Planning and management of the tax implications of physical supply-chain operations to reduce the actual taxes paid on profits and operations happen through: the potential to reduce corporate taxes on company profits; reducing absolute value-added tax (VAT) payable or cash-flow cost of VAT; reducing duty payable; optimising the indirect taxes paid on physical flows; and, change of transfer pricing driving reduction in effective corporate tax rates.

scholarly journals Using IoT in Supply Chain Risk Management, to Enable Collaboration between Business, Community, and Government

Smart Cities ◽  
2021 ◽  
Vol 4 (3) ◽  
pp. 995-1003
Author(s):  
Li Meng
Keyword(s):  
Social Media ◽  
Risk Management ◽  
Supply Chain ◽  
Risk Mitigation ◽  
Value Added ◽  
Business Community ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Business Services ◽  
Difficult Times

The internet of things (IoT) and social media provide information related to disasters that could help businesses to strategically mitigate risks and optimize their supply chain during difficult times. This paper proposes a framework to show how business or supply chain enterprisers can collaborate with community and government in disaster supply chain risk management. Businesses must have an established risk mitigation plan, update it periodically and implement promptly. Community collaboration can build a resilient society, and government should play an important role in leading both financial and non-financial support during natural disasters and pandemic management. The IoT and social media are new mechanisms as a vocal point to enable government, ensuring trustworthiness of information, to provide the community with a means to express needs and feedback, and to assist business services to meet the changeable preferences under risk threats. Social media can be a collaborative effort between all the parties and helps make value added decisions efficiently in supply chain risk management.

scholarly journals Fish Waste-Potential Low Cost Substrate for Bacterial Protease Production: A Brief Review

2016 ◽  
Vol 10 (1) ◽  
pp. 335-341 ◽  
Author(s):  
Aishwarya Ramkumar ◽  
Nallusamy Sivakumar ◽  
Reginald Victor
Keyword(s):  
Low Cost ◽  
Value Added ◽  
Protease Production ◽  
Industrial Biotechnology ◽  
Fish Waste ◽  
Environment And Health ◽  
Protease Enzyme ◽  
The Rich ◽  
The Cost ◽  
Value Added Products

Industrial biotechnology processes have recently been exploited for an economic utilization of wastes to produce value added products. Of which, fish waste is one of the rich sources of proteins that can be utilized as low cost substrates for microbial enzyme production. Fish heads, tails, fins, viscera and the chitinous materials make up the wastes from fish industries. Processing these wastes for the production of commercial value added products could result in a decrease in the cost of production. In addition, we can eliminate the pollution of the environment and health issues due to the improper disposal of these fish wastes. This review highlights the potential use of fish waste as a cheaper substrate for the production of economically important protease enzyme.

scholarly journals Mitigasi Rantai Pasok Rumput Laut dengan Pendekatan House of Risk dan Fuzzy AHP di Kabupaten Maluku Tenggara

2020 ◽  
Vol 40 (3) ◽  
pp. 242
Author(s):  
Wellem Anselmus Teniwut ◽  
Kamilius Deleles Betaubun ◽  
Marimin Marimin ◽  
Taufik Djatna
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Information Dissemination ◽  
Fuzzy Ahp ◽  
Supply Chain Coordination ◽  
Eastern Region ◽  
Supply Chain Risk ◽  
Analytic Hierarchy ◽  
Operational Risks ◽  
The Cost

Seaweed is among fishery commodities with great potential economy prospect. Southeast Maluku District is one of the main producers in Eastern region of Indonesia. Despite the high production since 2012, the number of farmers and the product has declined due to inadequate supply chain coordination and information dissemination among members. Therefore, this study aimed to mitigate the assymetric information in the region using the house of risk (HOR) to identify the risks to be addressed, and also provide response on the source of supply chain risk. Furthermore, Analytic hierarchy process (AHP) with fuzzy approach was used to determine the major factor, and then choose the best alternative to mitigate asymmetric information in the supply chain. Results showed there were five factors that contributed 70% risks. The results also indicated that dependence on local distributor was a factor that had to be prioritized and addressed. In addition, to mitigate the operational risks, findings showed it is necessary to establish seaweed farmers forum, which is the best approach based on the cost and effectiveness. This study also stated that local ,government of Southeast Maluku District was the main actor that helps to overcome the risks and asymmetric information problem. Therefore, the best alternative was to form an information center for seaweed cultivation, which will provide the knowledge of prices and potential buyer outside the region.

scholarly journals Research on Tax Planning of PPP Projects in China: Based on the Perspective of Digital Economy

2020 ◽  
Vol 4 (2) ◽  
pp. 128
Author(s):  
Jiangyu Huang
Keyword(s):  
Big Data ◽  
Value Added ◽  
Tax Planning ◽  
Digital Economy ◽  
Guizhou Province ◽  
Value For Money ◽  
Value Added Tax ◽  
Company Value ◽  
Fiscal Revenue ◽  
The Cost

The digital economy has become an important driving force for the growth of fiscal revenue in various countries. Tax planning is essential for the cost accounting of PPP projects, reducing corporate tax burdens, and increasing company value. This paper adopts a case analysis method, taking the smart highway PPP project in Guizhou Province as an example. Through statistical analysis, it is found that the value-for-money and big data of the PPP project affects tax planning, the project’ s value-added tax input and output items have time mismatches, and enterprises Income tax payment imbalance. In the context of the digital economy, the tax planning of China's PPP projects can be further improved: digital transformation and big data to prevent tax risks caused by value for money evaluation; based on digital technology to improve the value-added tax deduction chain, and digital communication platforms to alleviate time mismatch of value-added tax; use big data to monitor and balance project portfolio investment; improve the level of digital skills of financial personnel.

scholarly journals Preparation of Low-Cost Value-Added Indian Desserts

2021 ◽  
Vol 9 (9) ◽  
pp. 770-780
Author(s):  
Mausam Kumari
Keyword(s):  
Sweet Potato ◽  
Wheat Flour ◽  
Low Cost ◽  
Value Added ◽  
Potato Flour ◽  
Barley Flour ◽  
Seed Flour ◽  
Amaranth Seed ◽  
Sweet Potato Flour ◽  
The Cost

Abstract: The inter-relationships between poverty and nutrition are well known; poverty restricts access to food required to meet daily requirements or ensure dietary diversity and thus leads to malnutrition, while malnutrition can adversely affect educational and economic attainments, thus perpetuating poverty. Locally available foods which contains various nutrients like carbohydrates, proteins, essential amino acids (lysine, metheonine, valine etc.), “Preparation of Low Cost Value Added Indian Desserts (Pancake)”. with the objectives to determine the nutrient composition of malted wheat flour, malted barley flour, puffed amaranth seed flour, sweet potato flour, carrot flour and acceptability of value added prepared products by the incorporation of malted wheat flour, malted barley flour, puffed amaranth seed flour, sweet potato flour, carrot flour at different levels, to assess the organoleptic evaluation which were serve as treatment T1 (30g malted wheat flour,20g malted barley flour,20g sweet potato flour,20g carrot flour,10g puffed amaranth seed flour), T2 (25g malted wheat flour,20g malted barley flour,30g sweet potato flour,15g carrot flour,10g puffed amaranth seed flour) and T3 (20g malted wheat flour,20g malted barley flour,40g sweet potato flour,10g carrot flour,10g puffed amaranth seed flour) respectively, and “Pancake” was served as treatment T1 (30g malted wheat flour,20g malted barley flour,20g sweet potato flour,20g carrot flour,10g puffed amaranth seed flour), T2 (25g malted wheat flour,20g malted barley flour,30 g sweet potato flour,15g carrot flour,10g puffed amaranth seed flour) and T3 (20g malted wheat flour,20g malted barley flour,40g sweet potato flour,10g carrot flour,10g puffed amaranth seed flour) without incorporation of “malted wheat flour, malted barley flour, puffed amaranth seed flour, sweet potato flour, carrot flour” (T0) served as control. They were replicated three times for all three products and orangoleptic evaluation was carried out using the nine point hedonic scale. Nutritional composition was calculated using the different chemical analysis procedure; data obtained during investigation were statiscally analyzed by using analysis of variance (ANOVA) and critical difference (CD) techniques. On the basis of findings, was concluded that in case of “Pancake” incorporation level of treatment T2 (25g malted wheat flour, 20g malted barley flour, 30g sweet potato flour,15g carrot flour, 10g puffed amaranth seed flour) scored the best with regard to colour and appearance, body and texture, taste and flavour, overall acceptability. The cost of products based on raw materials (Rs/ 100g). The cost of the (Pancake) ranged between Rs 8.9 to Rs 11.45. Nutrient analysis of the products showed an increase in energy, protein, fat, carbohydrate, calcium and iron content when compared with control. On the basis of findings we concluded that the products for prepared by incorporating malted wheat flour, malted barley flour, puffed amaranth seed flour, sweet potato flour, carrot flour at different levels were at par with control/ conventional food products as well as improve the iron, fiber and calcium content. These food products are beneficial for malnourished children. Keywords: Malted Wheat, Malted Barley, Puffed Amaranth seed, Sweet Potato, Carrot, Pancake, amino acid.

The Cost of Independence: Evidence from Companies' Decisions to Dismiss Audit Firms as Tax-Service Providers

2019 ◽  
Vol 34 (2) ◽  
pp. 83-107
Author(s):  
Kirsten A. Cook ◽  
Kevin Kim ◽  
Thomas C. Omer
Keyword(s):  
Service Provision ◽  
Service Providers ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Tax Rates ◽  
Effective Tax Rates ◽  
Percentage Points ◽  
Sarbanes Oxley ◽  
Audit Firms ◽  
The Cost

SYNOPSIS This study examines whether companies' decisions to dismiss or substantially reduce reliance on their audit firms as tax-service providers in the wake of the Sarbanes-Oxley Act affect tax avoidance. We hypothesize that decoupling audit and tax-service provision and subsequently obtaining tax services from a new provider can result in decreased tax avoidance because the new provider lacks familiarity with a client's existing tax planning or does not have the expertise to generate new tax-avoidance opportunities. Consistent with our hypothesis, our results reveal that sample companies' book (cash) effective tax rates increased by economically significant 1.36 (1.63) percentage points in the year after terminating or substantially decreasing purchases of tax services from their audit firms, and discretionary permanent book-tax differences declined significantly. We find that decreases in tax avoidance were larger for companies whose outgoing tax-service providers were tax-specific industry experts.

Global supply chains and transfer pricing

2014 ◽  
Vol 19 (4) ◽  
pp. 445-454 ◽  
Author(s):  
Timo Seppälä ◽  
Martin Kenney ◽  
Jyrki Ali-Yrkkö
Keyword(s):  
International Trade ◽  
Supply Chain ◽  
Supply Chains ◽  
Geographical Distribution ◽  
Transfer Pricing ◽  
Value Added ◽  
Global Supply Chains ◽  
Content Type ◽  
Level Data

Purpose – The purpose of this paper is to integrate the issue of transfer pricing and logistics costs to understand trade statistics and the operation of supply chains by using invoice-level data for a single globally sourced product of a multinational firm.Supply chains are central to understanding wealth creation and capture in an increasingly globalized production system. The increasing disaggregation and dispersal of supply chains is profoundly affecting the geographical distribution of value added, input costs and profits of multinational firms. This suggests that understanding supply chains and where the activities and accounting for these activities take place is crucial for understanding the causes and consequences of contemporary globalization. Design/methodology/approach – By using a case study of a single product and invoice-level data, it was possible to capture the actual costs incurred by a firm using a relatively simple global supply chain. The authors show how corporate intra-firm transfer pricing determines which business unit and location captures profits. A single firm provided the core data in this paper, including product- and firm-level information on intermediate product prices and input costs for all internal transfers. Findings – This paper advances interesting insights into trade in value added and shows that, though not often considered significant, transfer pricing is a critical issue for understanding the geographical distribution of value added. The authors conclude with some observations about the nature of global supply chains, the value of international trade statistics and a hidden advantage of an integrated firm operating on a global scale the ability to somewhat arbitrarily select the activities to which profits should be allocated. For nation states, as supply chains become more international and complex, critical measures, such as gross domestic product, worker productivity, etc., are becoming ever more imprecise. The economic geography of cost of inputs and profits continue to separate as multinational enterprises drive the disaggregation of value creation and value capture. Research limitations/implications – The case study facilitates an understanding of complex supply chain issues, thereby extending and deepening findings from previous research. This case study of transfer pricing in supply chains will assist other scholars in better formulating testable propositions for their studies and sensitize them to the internal complexities corporate managers face when making operationalizing decisions. Originality/value – The case study suggests that understanding the configuration of and accounting in supply chains is vital for accurately measuring any national economic statistics. This case study provides some bottom-up evidence that national accounts and international trade economics undertaken without a deep understanding of supply chain organization is likely to generate misleading results. The methodology of using invoice-level data can provide a more granular understanding of how supply chains are organized and where the value is added and captured. For practitioners, the data suggest that firms should think very carefully about which of their activities generate the most value, and value those accordingly.

Assessing supply chain risk for apparel production in low cost countries using newsfeed analysis

2020 ◽  
Vol 25 (6) ◽  
pp. 803-821 ◽  
Author(s):  
Robert Handfield ◽  
Hang Sun ◽  
Lori Rothenberg
Keyword(s):  
Supply Chain ◽  
Low Cost ◽  
Developed Countries ◽  
Unstructured Data ◽  
Risk Scores ◽  
Supply Chain Risk ◽  
Short Term ◽  
Workplace Issues ◽  
Content Type

Purpose With the growth of unstructured data, opportunities to generate insights into supply chain risks in low cost countries (LCCs) are emerging. Sourcing risk has primarily focused on short-term mitigation. This paper aims to offer an approach that uses newsfeed data to assess regional supply base risk in LCC’s for the apparel sector, which managers can use to plan for future risk on a long-term planning horizon. Design/methodology/approach This paper demonstrates that the bulk of supplier risk assessments focus on short-term responses to disruptions in developed countries, revealing a gap in assessments of long-term risks for supply base expansion in LCCs. This paper develops an approach for predicting and planning for long-term supply base risk in LCC’s to address this shortfall. A machine-based learning algorithm is developed that uses the analysis of competing hypotheses heuristic to convert data from multiple news feeds into numerical risk scores and visual maps of supply chain risk. This paper demonstrates the approach by converting large amounts of unstructured data into two measures, risk impact and risk probability, leading to visualization of country-level supply base risks for a global apparel company. Findings This paper produced probability and impact scores for 23 distinct supply base risks across 10 countries in the apparel sector. The results suggest that the most significant long-term risks of supply disruption for apparel in LCC’s are human resource regulatory risks, workplace issues, inflation costs, safety violations and social welfare violations. The results suggest that apparel brands seeking suppliers in the regions of Cambodia, India, Bangladesh, Brazil and Vietnam should be aware of the significant risks in these regions that may require mitigative action. Originality/value This approach establishes a novel approach for objectively projecting future global sourcing risk, and yields visually mapped outcomes that can be applied in forecasting and planning for future risks when considering sourcing locations in LCC’s.

scholarly journals Production of oligosaccharides from lignocellulosic biomass

2020 ◽  
Author(s):  
◽  
Nanthakumar Arumugam ◽  
Keyword(s):  
Lignocellulosic Biomass ◽  
Plant Material ◽  
Low Cost ◽  
Value Added ◽  
Peanut Shell ◽  
Value Addition ◽  
Enzymatic Production ◽  
Platform Chemicals ◽  
The Cost ◽  
Agro Residues

Lignocellulosic biomass is the most abundant plant material present on earth which is primarily composed of cellulose, hemicellulose and lignin. The composition of lignocellulosic biomass varies depending on the type of plant material and the conditions at which the plant grow. Exploration of lignocellulose for the production of value-added compounds including all types of platform chemicals, biofuels and bioactive compounds is gaining momentum. However, extensive research needs to the carried out to minimize the cost of production to make the processing of this biomass more viable. In the last two decades, several agricultural biomass types have been studied to facilitate the production of biochemicals and biofuels at a low cost. Biomass such as peanut shells, bambara, cowpea and sorghum are some of the indigenous crops of South Africa that are yet to be explored for value addition. Therefore, this study was designed to characterize the underutilized agro-residues such as peanut shell, bambara, cowpea and sorghum biomass for the enzymatic production of prebiotic xylooligosaccharides (XOS) and their application.

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