Strategic cost allocation and tax risk management for a global tech provider

MDDP provided extensive support to a global provider of advanced technological solutions for the food and beverage processing industry in conducting a comprehensive analysis of costs incurred during an innovative project, executed in collaboration with related entities for an external client.

Faced with significant losses during the project, the Polish company sought MDDP’s expertise to navigate the complexities of the financial and tax implications. The MDDP team conducted an in-depth financial and tax analysis, which encompassed the following key considerations:

• The functional profiles of all involved entities,
• The specific contributions of each party to the project,
• The particularities of the food industry and the prevailing market dynamics,
• Internal operational adjustments during the analysis period.

Through this consistent approach, MDDP experts identified costs that should not be borne solely by the Polish company. In response, they developed a detailed cost-sharing model outlining the contribution of each relevant entity in line with market principles. The model followed an appropriate profit-sharing methodology aligned with international standards.

This project required sophisticated financial analysis and a thorough tax risk management strategy. Adding to the complexity were the unique characteristics of the food sector and the global scale of the client’s operations, which required a holistic and integrated approach to understanding how operational activities impacted financial results.

With MDDP’s comprehensive support, the client effectively reduced tax risks and ensured compliance with market-based accounting principles for the project.

The project was led by Magdalena Marciniak (TP), in collaboration with Marta Klepacz (TP).