1 © 2009 kpmg tax & advisory llc, almaty, kazakhstan, the member of kpmg international, a swiss...

1© 2009 KPMG Tax & Advisory LLC, Almaty, Kazakhstan, the member of KPMG International, a Swiss cooperative. All rights reserved.

A career as a tax consultant A career as a tax consultant

with KPMGwith KPMG

A career as a tax consultant A career as a tax consultant

with KPMGwith KPMG

TAX Department

Ward JonesWard JonesFebruary 2009February 2009


Outline Outline

• About KPMG

• Factors driving the demand for consulting services

• Tax department structure

• Services provided by the tax department

• Tax consultants’ activities and professional characteristics

• Your career with KPMG


What does KPMG stand forWhat does KPMG stand for??What does KPMG stand forWhat does KPMG stand for??

Klynveld(Holland)

In 1987, two leading accounting firms merged to become KPMG

Peat(England)

Marwick(USA)

Goerdeler(Germany)

KK

MM

PP

GG


KPMG ServicesKPMG Services

KPMG Services

Audit Tax services Consulting Services

• Tax advisory• Tax compliance• Tax reviews• Due diligence • Post-deal assistance• Tax appeals• Legal services

• Corporate finance• Corporate recovery

services• Transaction services• Accounting advisory

services• Regulatory compliance

services

• Audit of financial statements

• Audit-related services


KPMG tax departments worldwide KPMG tax departments worldwide ((number of employeesnumber of employees))

KPMG tax departments worldwide KPMG tax departments worldwide ((number of employeesnumber of employees))

CIS(394)

EMA(9200)

Worldwide(18,800)

Almaty and Astana(48)

Kiev(48)

Saint-Petersburg(28)

Moscow(263)

Yerevan(7)


Principal factors driving the demand Principal factors driving the demand for consulting services for consulting services

Principal factors driving the demand Principal factors driving the demand for consulting services for consulting services

Development of Kazakhstan’s economy

• GDP growth for the next 3 years is expected to average 4-5% per year

• Continued reliance on the energy and natural resource sector

• Financial sector reform – continued development of the securities market and financial instruments

International expansion of Kazakhstan companies

• Loan market – issue of bonds, Eurobonds, securitization

• IPOs

• Mergers and acquisitions

• Exports of goods from Kazakhstan

Improvements in the management and internal control of Kazakhstan companies


Significant foreign investments in Kazakhstan economy• Energy and natural resources• Real estate• Financial sector• Consumer goods sector

Kazakhstan Government’s plans to attract investments into infrastructure-related projects

Principal factors driving the demand for consulting services



Continuing reform of Kazakhstan’s legislation

• Taxation reform, including the following:

Switch to IFRS and the impact of IFRS on tax accounting Introduction of new tax law Development of procedures for the taxation of financial derivatives

• Interpretation of tax legislation by the tax authorities

• Reform of transfer pricing legislation

• Reform of labor legislation

• Reform of subsoil and subsoil use legislation

• Reform of securities legislation




Tax department structureTax department structure

Legal services

Real estate, information

and telecomm

Financial services

Energy and natural

resources

Mergers and acquisitions

Industry and trade sector

Tax department


Tax consultants need to know the following:Tax consultants need to know the following:

Criminal law

The Civil Code

Tax treaties

Transfer pricing legislation

The Customs Code

Company law

The Tax Code

Currency regulations

International Financial Reporting Standards

The Labor Code The Code onAdministrative Violations

Subsoil and subsoil use legislation


The tax consultant’s work processThe tax consultant’s work process

Recording of business requirements

Apply consultant’s knowledge, experience,

and professional judgmentAnalyze the client’s needs Develop and implement

solutions

Examples:

• Tax parts of memoranda on private placements of securities

• Formal analysis of tax aspects of the issue of Eurobonds


Our services: Tax advisoryOur services: Tax advisory

Client concerns

• A client intends to invest in Kazakhstan or enter into a transaction with a party in Kazakhstan

How we add value

• We can help structure the investment or transaction in a way to reduce tax costs within the bounds of tax legislation

What we do

• Advise on reducing the amount of Kazakh-source income, avoiding limits on the deductibility of expenses and taking advantage of other means of lowering tax costs


Our services: Tax complianceOur services: Tax compliance

Client concerns

• A client intends to establish operations in Kazakhstan but is concerned that it has insufficient knowledge of Kazakhstan legislation to comply with tax law and avoid pitfalls in the area of taxation

How we add value

• The company can outsource its compliance function to us to gain comfort that its tax reports meet legal requirements and take advantage of any opportunities available for reducing its tax costs in Kazakhstan

What we do

• We can prepare all tax and statistical reports for the company based on financial/accounting data maintained by the company or outsourced to a separate bookkeeping company


Our services: Tax reviewsOur services: Tax reviews

Client concerns• A client’s management would like an independent opinion on the

competence of its finance team and whether it can rely on the accuracy of tax declarations prepared by that team

How we add value

• We can review the company’s tax obligations to determine whether the company is in compliance with tax law and whether there are tax-savings opportunities available

What we do• Independently analyze the company’s computation of its tax liabilities to

determine whether they comply with tax law and could potentially be reduced

• Advise on ways to reclassify expenses or restructure transactions to reduce tax costs legally


Our services: Due diligenceOur services: Due diligence

Client concerns

• A client intends to grow its business by way of an acquisition or a company wishes to sell a subsidiary. The buyer or the seller seeks assistance with ensuring that the target’s tax and legal affairs are in order before the deal

How we add value

• We use our extensive transaction experience to identify tax or legal issues that could be a deal breaker and must be resolved before the transaction takes place

What we do

• Independently analyze the target to evaluate issues where the target faces exposure to taxes and recommendation of options for reducing tax exposure

• Advise on structuring the deal to reduce tax leakage and increase the seller’s after-tax profits

• Review or assist with drafting the sale and purchase agreement


Our services: Post-deal assistanceOur services: Post-deal assistance

Client concerns• A client intends to raise capital and requires assistance with determining

and publicizing the tax treatment of the process

How we add value• We can assist with the preparation of a tax comfort letter for the offering

circular, explaining the tax issues that potential investors might face

What we do• Identify potential issues to be addressed post-acquisition, provide

recommendations how to address them and help with the integration process


Our services: Tax appealsOur services: Tax appeals

Client concerns• A client undergoes a tax audit and incurs a significant tax assessment

How we add value• We can help prepare an appeal against the tax assessment and advise on all

procedures and deadlines that the client must observe with respect to the appeal process

What we do• Prepare a defense supporting the position taken by the client and challenged

by the tax authorities

• Advise on all avenues for appeal within the tax service and to courts of law, including the deadlines for appealing to each authority


Work on a project involves:Work on a project involves:Work on a project involves:Work on a project involves:

• The client

• The project

• The KPMG service team

• The scope of work

• The timeframe

• The final work product


Knowledge and skills needed by a successful tax consultant

Knowledge and skills needed by a successful tax consultant

• Knowledge of legislation and its implementation in practice

• Strong analytical skills

• Systematic approach to solving problems

• Strong communication skills

• Ability to think “outside the box”

• Strong business-writing skills

• Good command of English


Being a KPMG tax consultant involves:Being a KPMG tax consultant involves:

• Continuing improvement of professional knowledge

• Experience in consulting projects in different sectors of the economy

• Work in a team with different professionals from different fields

• Great opportunity to learn

• International qualifications

• Trainings

• Exchange of experience with leading KPMG practices

• Participation in the Global Mobility program

• Dynamic work

• Tight deadlines

• Ambitious goals


Consultant

Senior Consultant

Manager

Senior Manager

Partner

Long-term career perspectivesLong-term career perspectives

Director

Intern


Our requirementsOur requirements

• Graduates or undergraduate seniors

• Fluent English

• Readiness to work under a tight schedule and travel on business trips

• Goal-oriented and hard-working

• Desire to learn and advance professionally


Enrollment program for young specialists in 2009

Enrollment program for young specialists in 2009

• Register in the KPMG Recruitment System or complete an application form and mail it with a CV to: [email protected]

• Screening of candidates on the basis of a CV

• Testing

• Interview with an HR specialist

• Interview with tax department managers and partner

• Job offer


Contact informationContact informationContact informationContact information

KPMG Tax & Advisory

Dostyk Ave 180, Almaty

Tel: +7 (727) 298 08 98

[email protected]

www.kpmg.kz

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

1 © 2009 kpmg tax & advisory llc, almaty, kazakhstan, the member of kpmg international, a swiss...

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