Research Survey - Credit Rating Tax Advisory by Tax Advisors E-Book

Thomas Laufer

• Herausgeber: GRIN Verlag
• Sprache: Englisch
• Veröffentlichungsjahr: 2012

Beschreibung

Research Paper (postgraduate) from the year 2011 in the subject Business economics - Accounting and Taxes, , language: English, abstract: The paper explores the options for credit rating consultancy by the tax advisory branch in Germany. In terms of method in follow-up to introduction and definition, the subject is split into four partial theses. The theses explore in the theoretical part the options provided by the law of tax advisors for credit rating advisory services by tax advisors and training and education options to gain professional competence in credit rating consultancy. In the research part in two surveys, insights are sought on the need for credit rating advisory services and its current implementation status by the tax advisory branch. The discussion expIores the relevant market potential and respective income potential in fees. A novel aspect this approach entails is exploring the offer side for credit rating advisory services by tax consultants and the resulting insights for the tax advisory branch and individual tax consultancies.

Leseprobe

Table of Content

Chapter

1.3 Extension of the Scope of Operations in Response to Market Trends

2 Objectives and Methodology

2.1 Main Objectives of the Theses

2.2 Basic Thesis Breakdown into Partial Theses

2.3 Transforming the Partial Theses into Hypotheses

2.3.1 Generally on the Hypotheses

2.3.2 Hypothesis from Partial Thesis 1

2.3.3 Hypothesis from Partial Thesis 2

2.3.4 Hypothesis from Partial Thesis 3

2.3.5 Hypothesis from Partial Thesis 4

2.4 Method for Verifying the Partial Theses

2.4.1 Method for Hypotheses 1 and 2

2.4.2 Method for Hypothesis 3

2.4.3 Method for Hypothesis 4

2.5 Methodology of the Empirical Surveys

3.2.1 Research Status in Credit Rating Consultancy

3.2.2 Research Status in the Implementation of Credit Rating Advisory Services

4.1.1 Restrictions on Credit Rating Advisory Services for Tax Advisors

4.1.2 Verification of Hypothesis 1

4.2 Result for Hypothesis 2

4.2.1 Qualifications for Tax Advisors

4.2.2 Verification of Hypothesis 2

4.3 Result for Hypothesis 3

4.3.1 Return Rate in the Survey

4.3.2 Evaluation of the Online Survey - Rating Practices by Banks

4.3.3 Evaluation of the Online Survey - Bank Internal Measures

4.3.4 Evaluation of the Online Survey - Impact on Rating

4.3.5 Verification of Hypothesis 3

4.4 Result for Hypothesis 4

4.4.1 Evaluation of the Online Survey - Current Credit Rating Advisory Services

4.4.2 Evaluation of the Online Survey - Future Potential

4.4.3 Verification of Hypothesis 4

5.2 Market Challenges for Tax Consultants

5.2.1 Market Challenges for Tax Consultancies

5.3.1 Credit Rating as an Area of Operations for Tax Consultants

6.2 Summary and Results of the Empirical Survey for Tax Consultants

6.4 Contribution of the Effort Herein

7 References

7.1 General References

7.2 Dedicated Studies

7.3 List of Legal Sources and Current Law Drafts

7.4 List of Relevant Court Rulings and Acts of Law

published papers

Page 1

Page 1

Basics on Market Trends in the Tax Advisory Branch

According to a study by Sutter1, 56% of tax consultancies in 2005 viewed their position in a twoyear outlook as "rather good“, with 11% even finding the outlook "very good“. On the other end of the scale, the pessimists comprised merely 11% of the respondents, judging their perspective as "rather bad“. 30% had neutral expectations and 2% made no indication.

Fig. 1: Outlook by tax consultancies in 2005

The optimism in the meantime has been rather restrained. The general economic crisis soured the mood of 2005. The 2008 branch report by Sparkassen Finanzgruppe for the branches of auditors and tax consultancies2draws a conclusion that turnovers of tax consultancies saw a negative development already in the fourth quarter of 2007. The income of tax consultancies in fees mainly depends on turnover and profits of commercial enterprises, which means that the negative market trends for tax consultancies follow with a delay the general developments. Also for follow-up periods as of the first half of 20093, economic projections for the tax advisory branch look rather bleak.

1Cf. Sutter, P. (study). (2005). Agenda 2011. Mehr Effizienz für Steuerberater. Eine Gemeinschaftsstudie von Maisberger

Whiteoaks und Agenda Informationssysteme GmbH. Veröffentlichung Dezember 2005. Internet: http://www.agenda2011.de. p.

177. [quot. 10-01-05]

2Cf. Deutscher Sparkassen- und Giroverband e.V. (Ed.). (2008). Finanzgruppe Branchendienst. Wirtschaftsprüfung und

Steuerberatung. Branchenreport 2008, WZ-Code 74.12. p. 3.

3Cf. Effner, E. (2009). Erfolgsstrategien. Pläne für die Zukunft schmieden. In: SteuerConsultant, Vol. 11. Issue 3. p. 40.

Page 2

Competitive Pressures upon Tax Consultants by Other Service

The competitive pressure on tax consultants has been on the rise not only as a result of competition within the branch itself but also compounded by allowable service offers of third parties not sanctioned as professional tax consultants4. Examples include:xAccountancies and independent account advisors;xPayroll accountancies including payroll accounting centers, andxBusiness consultancies in economic branches.

Solicitors not working to full capacity in their legal line of work also have been encroaching on the tax consultancy market. Auditors not having participated in or passed the required quality checks (peer review schemes)5have been increasing their activities within the classical scope of services of tax consultants6as well.

Market dynamics have been accelerating mainly through the activities of accountancies and independent account advisors. Further also independent providers working to lower hourly rates seek market shares in those parts of the consultancy market they are allowed to operate in. In addition, a number of clients are trying to push down the rates of tax consultants and to chalk up savings in economic and/or personnel consultancy.7

1.3 Extension of the Scope of Operations in Response to Market Trends

The branch has been called to order given the changing competitive pressures in the market. The scope of operations of authorised tax consultants in Germany has been extended by means of update to the German Legal Services Act8as of 2008.

The updated act of law opens up new additional areas of operations for tax consultants. Credit rating advisory services rank as one among the new areas. The first key aim of the thesis is to analyse whetherxCredit rating advisory services are allowable for tax consultants, andxWhat qualification options are there in credit rating advisory activities.

4Cf. Mayerhöfer, A. (2005). Fibu zu Tiefstpreisen. In: SteuerConsultant. Vol. 7. Issue 5. p. 12.

5Cf. Engelken, E. (2005). Peer Review fesselt den Berufsstand. In: SteuerConsultant, Vol. 7. Issue 11. p. 12.

6Cf. Sutter, P. (2005). As above. p. 32.

7Cf. Bundesverband der Deutschen Volksbanken und Raiffeisenbanken, (Ed.) (2008a). Branchen Spezial, Branchenreport des

Bundesverbandes der Deutschen Volksbanken und Raiffeisenbanken, Bericht 81. Issue March 2008. p. 9.

8Cf. RDG. Gesetz über außergerichtliche Rechtsdienstleistungen from December 12, 2007. BGBl I 2007. p. 2840. Last amended

by article 6, act. from June 12, 2008. BGBl I 2008. p. 1000.