Client Case Studies

Maximizing Tax Compliance and Risk Management for Gränges

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BACKGROUND:

Gränges, a leading manufacturer in the aluminum industry, operates a billion-dollar U.S. business with multiple locations. Managing tax compliance across different states presented a growing challenge, especially as the company expanded its footprint. The complexity of property and sales tax compliance and the need for specialized expertise led Gränges to seek a partner who could ensure accuracy, minimize tax liability, and reduce risk exposure.

"Outsourcing tax compliance in this space is a necessity," said Bob Kavanaugh, Vice President of Finance at Gränges. "We don't have the in-house expertise or capacity to manage these highly specialized areas."

CHALLENGES:

Gränges faced several challenges in managing its tax obligations effectively:

• Lack of Specialized Expertise: Property tax and sales tax compliance require deep technical knowledge, which was not feasible for Gränges to maintain in-house.

• Risk of Costly Errors: Previous experiences with tax audits revealed significant risks when tax filings were handled internally without expert oversight.

• Time-Consuming Audit Process: A complex sales tax audit in Arkansas required extensive resources and expertise that Gränges' team could not provide internally.

• Historical Record Complexity: Managing property tax compliance required sorting through years of records to ensure accurate filings and strategic tax savings opportunities.

SOLUTION:

Baden Tax Management stepped in to provide Gränges with a tailored, high-touch approach to tax compliance and risk management:

• Expert-Led Property and Sales Tax Management: Baden leveraged its specialized knowledge to handle property tax filings for Gränges, uncovering tax savings opportunities.

• Audit Representation and Risk Mitigation: Baden provided extensive support in managing the Arkansas sales tax audit, reducing the burden on Gränges' internal team and allowing them to focus on other priorities.

• Proactive Tax Reduction Strategies: By thoroughly reviewing Gränges’ property tax assessments, Baden identified potential tax reduction strategies to optimize compliance and cost savings.

• Simplified Communication and Process Efficiency: Baden made tax compliance user-friendly for Gränges, translating complex tax matters into clear, actionable steps and facilitating easy collaboration.

"Baden is great at making complex tax matters user-friendly. They phrase questions in a way that makes it easy for us to respond and provide the necessary information," noted Kavanaugh.

RESULTS:

The partnership between Gränges and Baden Tax Management has yielded significant benefits:

• Reduced Tax Liability: Baden’s expertise led to substantial tax savings by identifying property tax reductions and securing exemptions.

• Seamless Audit Handling: Baden successfully took over the Arkansas sales tax audit, reducing the burden on Gränges’ internal team and ensuring a strategic approach to compliance.

• Positive Audit Impact: Baden has been instrumental in challenging audit findings and the auditor’s adjustments, reducing the audit liability and saving Gränges time and resources.

• Risk Mitigation and Future Efficiency: By integrating Baden’s expertise into internal processes, Gränges is better equipped to manage tax compliance and avoid future audit risks.

• Expanded Partnership: After an initial successful engagement, Gränges expanded Baden’s scope to include additional support, recognizing the value of their proactive approach and results-driven strategy.

"Baden has been a lifesaver for us. They not only handled a tough situation but did so with professionalism, deep expertise, and a client-first approach," said Kavanaugh.

CONCLUSION:

Through its partnership with Baden Tax Management, Gränges has achieved greater confidence in its tax compliance strategy, reduced financial exposure, and freed up internal resources to focus on business growth. Baden’s proactive, client-centered service continues to make them an invaluable partner in managing Gränges’ complex tax landscape.