IC-DISC

offers an overall reduction of tax

Client Description

An East Coast commercial client who owns and runs multiple facilities.

Problem/Issue

The company has significant foreign sales. Management was looking for a way to minimize the company’s tax burden and retain more operating cash flow.

BerryDunn’s Solution/Approach

BerryDunn experts worked with our client to:

• Identify salient tax planning methods for the greatest tax savings opportunity, while keeping an eye out for a modest implementation cost
• Form an Interest-Charge Domestic Sales Corporation (IC-DISC), a special tax planning mechanism
• Meet all statutory requirements and begin utilizing the IC-DISC as a tax savings opportunity almost immediately

Outcomes

Given the nature and source of the client’s sales, we were able to work with the client to implement an IC-DISC as a tax planning stratagem. This has resulted in an overall reduction of tax in excess of seven figures without interrupting the normal business cycle or placing undue burdens upon the internal finance staff.