Case Study 1:

U.S. equipment manufacturer saved over $250,000 in federal
income taxes with an IC-DISC.

The Issue:
A growing equipment manufacturer sold more than $10 million of specialty equipment throughout Europe and Southeast Asia in 2009. Due to the highly specialized nature of the equipment, as well as increasing demand in export markets, the company was highly profitable in 2009.  These high profit margins would have resulted in an onerous federal income tax liability of more than $750,000 for 2009.  Such a large cash outflow would be detrimental, since the cash was needed for significant plant expansion, R&D and the purchase of new capital-intense machinery.

The Solution:
Implementing an IC-DISC would significantly reduce the 2009 federal income tax liability for the company. Likewise, a transaction-by-transaction optimization would further increase the federal income tax savings in 2009.

Case Study:

Export Tax Management, Inc. (ETM) provided personalized solutions and a turn-key IC-DISC implementation on January 5, 2009, and fully utilized ETM’s proprietary transaction-by-transaction optimization to fully maximize federal income tax savings.  The implementation of the IC-DISC alone saved the company $155,000 for 2009.  By also utilizing ETM’s proprietary transaction-by-transaction optimization, the company saved an additional $100,000. The overall federal income tax savings of $255,000 generated by the IC-DISC was used to fund R&D and finance much of the necessary plant expansion as well as purchase new machinery.

Case Study 2:

Scrap metal recycler saved over $175,000 in federal income taxes with an IC-DISC.

The Issue:
A metal recycler sold more than $7 million of ferrous and non-ferrous metal to China and India during the last six months of 2010. Although the price of both ferrous and non-ferrous metal were volatile throughout 2010, the metal recycler was still very profitable.  Metal recycler was planning significant expansion into the export market, and Export Tax Management, Inc. (ETM) was consulted.

The Solution:
Implementing an IC-DISC would significantly reduce the 2010 federal income tax liability for the metal recycler while not altering the normal course of operations. Likewise, a transaction-by-transaction optimization would significantly  increase the federal income tax savings in 2010.

Case Study:

ETM provided personalized solutions and a turn-key IC-DISC implementation on June 5, 2010, and fully utilized ETM’s proprietary transaction-by-transaction optimization to maximize federal income tax savings.  The implementation of the IC-DISC alone saved the company $95,000 for the second half of 2010.  By also utilizing ETM’s proprietary transaction-by-transaction optimization, the company saved an additional $80,000. The overall federal income tax savings of $175,000 that was generated by the IC-DISC was used to provide additional working capital and increase ferrous and non-ferrous inventories for metal recycler.