Falcon SC Capability Statements. About Falcon SC. A. Taxation Services - General. Dear Our Valued Clients,

Transcription

1 PT FALCON SOLUSI CAKRAWALA Graha Mustika Ratu, Mz. Floor Jl. Jend. Gatot Subroto Kav JAKARTA Phone : /51 Fax : Website : Dear Our Valued Clients, Falcon SC Capability Statements About Falcon SC Falcon SC assembles a core team of experienced tax & business advisors whose wide range of expertise and experience cover a broad spectrum of disciplines, industries and markets. We have what we believe are the resources to serve a broad range of clients in many industries, and therefore are well placed to be able to provide both local and international capability and assistance with a wide range of timely tax services. Moreover, we at Falcon SC are committed to rendering high quality services and shall maintain close communications with management throughout the year by providing up to date publications and, most importantly, personal contact. A. Taxation Services - General Tax related services may be provided in various forms and include assistance in meeting the monthly and annual tax obligations of the Company, advice on business or transaction structuring, income tax law interpretation, procedures and administration, review of activities or contracts to identity areas for potential tax exposures, optimization and compliance. Tax Compliance We can assist the Company to meet monthly and annual tax obligations, covering calculation and reporting of corporation and employee income tax, withholding taxes, and value added tax by either completing the returns from information provided to us, providing a review process for returns prepared by the Company and/or training your staff to complete the returns themselves. We can also help to deal with Tax Office letters and demands which arrive from time to time, and with applications for extensions, exemptions, etc. On-going Tax Consultation/Advice We can provide taxation advice on specific tax issues which may arise from time to time and other relevant business advice. We are aware of the importance that management normally places on the minimization of tax liabilities and exposures and the maintenance of a low profile on taxation matters and would work with management to optimize the Company's tax position. We will assist the Company to monitor its tax position to ensure it is not exposing itself unnecessarily to tax audits and tax office scrutiny.

2 Capability Statement and List of Clients Page 2 of 5 Tax Diagnostic Reviews Tax diagnostic reviews comprise a detailed review of the Company's current tax position concerning compliance with all tax regulations to identify exposures to tax penalties and highlight any deficiencies in reporting, data collection, and/or application of the various tax laws. We also look at possibilities for tax minimization and effective planning to ensure that the Company is fully utilizing its ability to claim tax deductions. In the wider field we can offer comprehensive tax planning and advice on strategic positioning in the context of the Company's plans and intentions. Tax Audit Assistance We are able to assist or represent the Company in the event of a tax audit or other tax office enquiries. Tax audit assistance generally entails us helping clients to avert the need for tax audits by liaising with the Tax Office, and/or to prepare for a tax audit should one materialize. This preparation includes pre-audit parameter meetings with the Tax Office to agree the scope, timing, place, etc. of the audit, and advice and assistance as to the documentation to be presented to the Tax Office. We offer to monitor the progress of the tax audit to ensure the correct processes are followed and represent the Company before the Tax Office to resolve issues and defend the Company's position. If necessary, at the conclusion of the Tax Audit process, we can also assist with objection letters to the Tax Office and appeals to the Tax Court Merger Assistance We will analyze and advise regarding the tax implications of the merger process, especially as regards the possible use of book values, potential capital gains for shareholders, the timing and bases for the imposition of corporate income and indirect taxes, deductibility of expenses arising from the merger, the possibility of carrying losses forward from a surviving and/or non surviving company (pursuant to the tax regulations in force), taxes on transfer of land and buildings, possible crystallization of taxes and duties on assets acquired under BKPM facilities, implications of revaluations of assets pursuant to a merger and the tax laws. We will also comment on the possibility and/or potential for revaluations of assets in accordance with the rules prevailing, as part of the merger process and the possible transfer pricing issues as the assets will be transferring between related parties We will assist in obtaining the relevant Tax Office approvals on the use of book value in the transfer of assets and liabilities by the Transferor, reduction in the 5% purchase on the transfer of land and buildings, and fixed assets revaluation We will also follow-up the status of the application to ensure a timely and favorable response from the Tax Office.

3 Capability Statement and List of Clients Page 3 of 5 Debt Restructuring Advice We will analyze and advise regarding the tax implications of the restructuring efforts for the Company s debt, ensuring maximum utilization of available tax concessions by way of deferred payment or reduction in the income tax liability in relation to income perceived to arise from inter alia debt forgiveness, debt to asset swaps and debt to equity swaps. Due Diligence Review We can conduct a review of the Target Company s books and records of to the extent considered necessary in the agreed upon areas to provide reasonable assurance that major taxation requirements are being addressed appropriately and honestly. We will check any significant corporate transactions for tax implications and where applicable comment on the cost effectiveness of the Target Company s tax planning and strategies. In the wider field we can offer comprehensive tax planning and advice on strategic positioning in the context of the Investor's plans and intentions. International Assignment Services Our individual taxation consulting, compliance and advisory services cover the registration, monthly reporting, annual return preparation and lodgment and tax de-registration processes as well as the provision of advice to help individuals understand their obligations, the laws and regulations, and the options available. Others (Contribution to the Government of Indonesia) Falcon SC was selected as one of the drafting team and contributor to the drafting of Tax Amnesty Law in Indonesia and its several implementation regulations as well as discussion among related Government Agencies as well as professionals in order the implementation of the Tax Amnesty Law can be acceptable by all of taxpayers in Indonesia. Currently, Falcon SC also selected to be one of the team who provide suggestions/ feedback and recommendations on the Draft Law on General Provisions and Procedures of Taxation that has been prepared by the DGT Team. B. Non-Taxation Services To provide one-stop services to our clients in supporting the business movement, we also provide Business Services and Customs Services, with the detail as follows : Business Services Generally, Indonesia adopts an open policy in foreign investment. Except for certain types of industries as stated in a Negative List for Capital Investments issued by the Government, any business activities are open for up to 100% foreign investments. The Negative List sets out types of industries that are completely closed for investment, open only for local investments, and open

4 Capability Statement and List of Clients Page 4 of 5 for foreign investments with certain requirements (joint venture, partnership with local smallscale business, percentage of foreign shareholding, etc.). Kindly note that, although a 100% foreign ownership is allowed for certain lines of business, under the Indonesian Investment Law, the shareholders must sell a portion of their shares to local party within 15 years after establishment. No minimum percentage though, is defined. In relation with the new establishment of the Foreign Investment Company, we can provide services to obtain general business licenses and business facilities provided by The Republic of Indonesia Government for the foreign investors such as : Establishment of Foreign Investment License Import License Special Import License Working Permit for Foreign Employee Obtaining Masterlist facility Obtaining Tax Exemption, etc Including the support in your Strategic Business Movement such as : Financial Modeling for any business purposes Internal audit assistance Internal Diagnostic Business Review Comparative Business analysis Company Liquidation assistance Other services Customs Services Our Customs services includes: Advisory and Planning Customs Review Customs Audit, Objection and Appeal Obtaining Confirmation from the Directorate of Customs and Excise Obtaining the Bonded Warehouse License Cancellation of the Bonded Warehouse License

5 Capability Statement and List of Clients Page 5 of 5 C. List of Clients Falcon SC has assisted clients in a wide variety of fields including property, manufacturing, trading, banking & finance, agriculture and general services industries (please refer to our website for further information about our Company Profile and Clientele). Please feel free to contact us if you need further information. Yours faithfully, Falcon Strategic Consulting Hidajat Hoesni Managing Director Cecylia R Setiadi Director