Rewards of Merit: Sales & Use Tax

Identifying Repeatable Cash Tax Savings Opportunities

Client:

A public oilfield service company engaged Merit to uncover all possible ways to improve profit margins and reduce tax liability, allowing it to sustain operations amid a severe industry downturn.

Results for client

$5.2 M

Two-year Cash Tax Savings

Developed Strategy to Maintain Valuation Controls & Estimate Annual Tax Liabilities

Challenge:

  • Client sought to minimize current tax liability to maintain margins and defend its share of an increasingly lean oilfield service market.
 
  • Client needed a strategy to predict future tax liability, despite appraisal volatility from country appraisal districts (CADs).
 
  • Client needed to develop s strategy for estimating future property taxes.

Merit Action Plan:

  • Negotiated directly with CADs on client’s behalf after conducting a thorough review of appraisals.

     

  • Completed work before CADs issued appraisal notices, lowering the basis for negotiations and avoiding formal public hearings.
 
 

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