Financial and Economic Consulting

In our daily work with clients, we are not limited to narrow-profile services, as we approach issues comprehensively in all aspects of their activities. For over twenty years, K.A.C. Group has been able to support several large projects on the organization and structuring of complex export-import contracts; buying and selling businesses; attracting foreign strategic investors and external financing; tax planning for both business entities and their beneficiaries. Taking into account the experience gained, the K.A.C. Group experts offer services in areas that they are not just specialized in, but which are currently in demand by clients:

Tax, Financial and Legal Due Diligence during Investing

For clients who plan to invest in a new business, in order to draw up an objective idea of the investment object, we conduct a comprehensive study of the object, identify and assess risks.

The basis of due diligence is a thorough audit and analysis (including legal one) of internal documentation, tax and financial reporting, taking into account current practice, as well as in changes in the legislation of Ukraine, the EEC states and the USA with regard to the disclosure of beneficiaries and sources of their income (MLI, BEPS).

As a result of our work, the client does not only receive a conclusion on the object of purchase (investment): our specialists participate in negotiations with the client’s partners, justifying their position.

Forensic Service

As an integral part of financial and legal compliance, K.A.C. Group offers a forensic service, which consists in the collection and analysis of information that will help in resolving situations when there are disagreements between the client and their counterparties on financial, commercial, legal and other issues related to significant economic risks, as well as when the actions of the client’s employees do not comply with legislative or other regulations, principles and standards.

Support of Transactions for the Sale of Facilities (Businesses)

In the case of the sale of their facilities or businesses, at the request of clients, K.A.C. Group forms a group of specialists consisting of auditors, lawyers and expert appraisers who are essentially engaged in business “pre-sale” preparation, including “enterprise value creation”. Such work can start with conducting an audit with the aim of possibly adjusting previously submitted reports and “optimizing” the balance of accounts payable and receivable and move on to drawing up business plans and investment projects.

Expert Assessment

K.A.C. Group experts provide expert analysis of estate, property, non-property rights, business and land on the basis of Certificate No. 16814/14 issued by the State Property Fund.

As a rule, for the client, an expert assessment is not the goal itself, but serves as a tool for carrying out various operations with assets. Such operations may include contributing additional assets to the authorized capital of an enterprise, making transactions for the purchase, sale and rental of property. Sometimes, it is necessary to determine the value of collateral, intangible assets, assets of the company upon conclusion of insurance contracts, the amount of damage upon occurrence of insured events and other property disputes, assets when they are leased out, operating lease, trust management.

In accordance with the legislation of Ukraine, an expert assessment of property is mandatory:

• when privatizing state enterprises;
• when concluding state property lease agreements;
• to determine the amount of damage in the event of an insured event;
• for a property contribution to the authorized capital of the company being created;
• when carrying out operations with land (relevant due to the lifting of the moratorium on the sale of agricultural land).

The qualifications of our experts are confirmed by the corresponding certificates of the State Property Fund and the State Committee for Land Administration for the right to engage in appraisal activities, a general agreement of categories A, B, C concluded with the State Property Fund of Ukraine for the right to assess state property. The result of the work is organized as a report that meets the Approved European Standards (ECO), recommendations of the Ukrainian Appraisers’ Society (UAS), the State Property Fund of Ukraine (SPFU) and the State Committee for Land Resources of Ukraine and the current legislation of Ukraine.

Development of Individual Projects for Business Structuring and Tax Payments Optimizing

K.A.C. Group, not being a classical audit or law firm, applies the experience of its auditors and lawyers in resolving the most pressing issues of tax and corporate consulting at the junction of Ukrainian and foreign legislations with the application of existing tax laws; international double tax treaties; international business companies; hidden opportunities of non-regulated points of the current legislation; own developments and practical experience of clients.

The result of our work in this direction is an optimally constructed corporate structure combining manufacturing businesses and assets in Ukraine and abroad, as well as optimally arranged financial flows and points of “tax deductions”, calculated and justified in terms of tax legislation and international disclosure requirements.

We do not only develop and implement projects for structuring businesses in Ukraine and abroad, taking into account the interests of the beneficiaries of these businesses, but also support them in the future.

In this regard, we recommend our clients one more service in the field of financial and economic consulting:

Legalization of the Beneficiary in the Legislative Field of Ukraine

We have developed a set of measures for the legalization of financial instruments (for international business companies and bank accounts) in the legislative field of Ukraine, where the key point is the interests of the beneficiary who is a resident of Ukraine (and, in one way or another, is involved in financial instruments) under the conditions of BEPS, MLI and global exchange of information.

The main task that our customers have been solving together with us throughout all the years of our cooperation has been coming up with the optimal structure for managing/owning businesses from the point of view of security and tax optimization. In addition, the following concerns are considered:

1. Solving issues of legalization of a citizen of Ukraine as a beneficiary of businesses in Ukraine and abroad, including the businesses that were created earlier.
2. Formation of the beneficiary’s income history.
3. Structuring the business and the income from it for Ukrainian citizens, beneficiaries of non-resident companies, in the future.

These matters are analyzed and solved in a purely individual manner, based on the specifics of a particular case.In our daily work with clients, we are not limited to narrow-profile services, as we approach issues comprehensively in all aspects of their activities. For over twenty years, K.A.C. Group has been able to support several large projects on the organization and structuring of complex export-import contracts; buying and selling businesses; attracting foreign strategic investors and external financing; tax planning for both business entities and their beneficiaries. Taking into account the experience gained, the K.A.C. Group experts offer services in areas that they are not just specialized in, but which are currently in demand by clients:

Tax, Financial and Legal Due Diligence during Investing

For clients who plan to invest in a new business, in order to draw up an objective idea of the investment object, we conduct a comprehensive study of the object, identify and assess risks.

The basis of due diligence is a thorough audit and analysis (including legal one) of internal documentation, tax and financial reporting, taking into account current practice, as well as in changes in the legislation of Ukraine, the EEC states and the USA with regard to the disclosure of beneficiaries and sources of their income (MLI, BEPS).

As a result of our work, the client does not only receive a conclusion on the object of purchase (investment): our specialists participate in negotiations with the client’s partners, justifying their position.

Forensic Service

As an integral part of financial and legal compliance, K.A.C. Group offers a forensic service, which consists in the collection and analysis of information that will help in resolving situations when there are disagreements between the client and their counterparties on financial, commercial, legal and other issues related to significant economic risks, as well as when the actions of the client’s employees do not comply with legislative or other regulations, principles and standards.

Support of Transactions for the Sale of Facilities (Businesses)

In the case of the sale of their facilities or businesses, at the request of clients, K.A.C. Group forms a group of specialists consisting of auditors, lawyers and expert appraisers who are essentially engaged in business “pre-sale” preparation, including “enterprise value creation”. Such work can start with conducting an audit with the aim of possibly adjusting previously submitted reports and “optimizing” the balance of accounts payable and receivable and move on to drawing up business plans and investment projects.

Expert Assessment

K.A.C. Group experts provide expert analysis of estate, property, non-property rights, business and land on the basis of Certificate No. 16814/14 issued by the State Property Fund.

As a rule, for the client, an expert assessment is not the goal itself, but serves as a tool for carrying out various operations with assets. Such operations may include contributing additional assets to the authorized capital of an enterprise, making transactions for the purchase, sale and rental of property. Sometimes, it is necessary to determine the value of collateral, intangible assets, assets of the company upon conclusion of insurance contracts, the amount of damage upon occurrence of insured events and other property disputes, assets when they are leased out, operating lease, trust management.

In accordance with the legislation of Ukraine, an expert assessment of property is mandatory:

• when privatizing state enterprises;
• when concluding state property lease agreements;
• to determine the amount of damage in the event of an insured event;
• for a property contribution to the authorized capital of the company being created;
• when carrying out operations with land (relevant due to the lifting of the moratorium on the sale of agricultural land).

The qualifications of our experts are confirmed by the corresponding certificates of the State Property Fund and the State Committee for Land Administration for the right to engage in appraisal activities, a general agreement of categories A, B, C concluded with the State Property Fund of Ukraine for the right to assess state property. The result of the work is organized as a report that meets the Approved European Standards (ECO), recommendations of the Ukrainian Appraisers’ Society (UAS), the State Property Fund of Ukraine (SPFU) and the State Committee for Land Resources of Ukraine and the current legislation of Ukraine.

Development of Individual Projects for Business Structuring and Tax Payments Optimizing

K.A.C. Group, not being a classical audit or law firm, applies the experience of its auditors and lawyers in resolving the most pressing issues of tax and corporate consulting at the junction of Ukrainian and foreign legislations with the application of existing tax laws; international double tax treaties; international business companies; hidden opportunities of non-regulated points of the current legislation; own developments and practical experience of clients.

The result of our work in this direction is an optimally constructed corporate structure combining manufacturing businesses and assets in Ukraine and abroad, as well as optimally arranged financial flows and points of “tax deductions”, calculated and justified in terms of tax legislation and international disclosure requirements.

We do not only develop and implement projects for structuring businesses in Ukraine and abroad, taking into account the interests of the beneficiaries of these businesses, but also support them in the future.

In this regard, we recommend our clients one more service in the field of financial and economic consulting:

Legalization of the Beneficiary in the Legislative Field of Ukraine

We have developed a set of measures for the legalization of financial instruments (for international business companies and bank accounts) in the legislative field of Ukraine, where the key point is the interests of the beneficiary who is a resident of Ukraine (and, in one way or another, is involved in financial instruments) under the conditions of BEPS, MLI and global exchange of information.

The main task that our customers have been solving together with us throughout all the years of our cooperation has been coming up with the optimal structure for managing/owning businesses from the point of view of security and tax optimization. In addition, the following concerns are considered:

1. Solving issues of legalization of a citizen of Ukraine as a beneficiary of businesses in Ukraine and abroad, including the businesses that were created earlier.
2. Formation of the beneficiary’s income history.
3. Structuring the business and the income from it for Ukrainian citizens, beneficiaries of non-resident companies, in the future.

These matters are analyzed and solved in a purely individual manner, based on the specifics of a particular case.