GSA is the leading North American Telecom Regulatory and Indirect Tax Compliance advisory and outsource provider. With over 14 years’ experience in the industry, GSA has performed regulatory reviews for telecommunications providers since its inception and is perhaps the most experienced with understanding guidelines surrounding federal and state regulatory and tax rules. Combined with our repositories of data on over 24,000 jurisdictions; GSA’s professionals bring their expertise to bare on all engagements.
About the Carrier
The mobile carrier had adapted their regulatory regimen from a previous business model and support method for rating tax and calculating regulatory liabilities. The largest of them being federal Universal Service Fund liability. Unfortunately for the carrier, assumptions regarding how their products should be rated were based on antiquated resources.
GSA performed a three level approach to the engagement. First, GSA identified the methods by which the carrier applied tax rating to their transactions. This research gave us details on how efficient and accurate the rating logic applied tax liability to the customers’ transactions.
Next, GSA rebuilt the revenue experience in our Tax Lab. GSA applied their knowledge of the customer’s product and sales goals to their revenue and modeled scenarios which achieved the best tax treatment. In doing so, GSA recognized that revenue recognition for the carrier along with their marketing materials did not reflect the proper offerings to achieve the optimal results. As a result, GSA and the carrier embarked on a full review of their terms and conditions and a re-application of revenue recognition methods to synchronize USF filing reports, profiled by GSA to be optimized.
The End Result
This outcome of the project led to a redesign of the customer’s point of sale (POS) and tax rating engine. Integral to that redesign were GSA’s optimization rules which synchronized the rating with the reporting of liabilities. A byproduct of the redesign was seamless automation of transaction data imported into the General Ledger for Revenue Recognition without manual manipulation. The outcome- our carrier ultimately reduced their USF liability by over $700,000 which was credited within the year of their annual report, creating an ROI of over 400% on the project.
If you have manual processes involved in your tax and regulatory reporting, and (or) if you have older resources (advisors and systems); let GSA look at your reporting methods to see if there are ways to improve your bottom line.