Client: Reverse Group SIA
Project time frame: 4 months
Background:
Reverse Group SIA runs an e-commerce business offering a range of digital wellness and health solutions. Given the proposed changes to its business structure, which involved adjusting the motivational tools available to its employees, the company engaged PwC to conduct a tax assessment of those changes and to help it efficiently make decisions relevant to the future development of its business.
Key project activities:
- Several PwC firms in EU member states were engaged to assess Reverse Group’s structure and to provide recommendations for changing it according to each relevant country’s national law and international law, considering the company’s specific business model in an international context and the e-business environment, as well as evaluating the current business and industry practices.
- Working closely with the company and taking account of its future development plans, PwC devised a tax risk mitigation plan with options for mitigating risks when the group’s business is expanded in various national markets. The plan involved examining foreign staff employment issues from a tax perspective and identifying aspects to be considered in the case of remote work. As a result, the company created an internal methodology with necessary steps to carry out the group expansion.
- PwC evaluated the proposed motivation system and the relevant tax laws to achieve the company’s goals efficiently and to offer a competitive motivation tool meeting market requirements in several countries the group operates in.
Outcome:
As a result of the project, the company’s internal methodology was created with steps to be taken when the group expands, and a decision was made on the group’s final structure to be implemented in the light of the risk assessment. It was also decided to set up a new group unit in Europe acting as an IT centre. In the risk assessment context, the company identified restrictions on certain functions and responsibilities of employees potentially working outside Latvia in the future.
