Corporate Procurement Cards: Planning and Executing a Program to Master the Sales Tax Complexities

Recording of a 90-minute CPE webinar with Q&A


Conducted on Tuesday, October 21, 2008

Program Materials

Description

The use of procurement cards (company credit cards used for small-dollar purchases of supplies and materials) has become entrenched in corporate America as well as in the government sector. Their popularity is great for the purchasing department but can create anxiety for the tax staff.

Hiring and negotiating with a card-issuer bank on providing statements that support the tax function is crucial. Maintaining proper documentation for enough years can make the minefield of state sales tax audits even more dangerous. Are non-tax staff trained on taxability and exemption certificates?

As tax professionals, it falls on you to ensure your company’s processes are sound and its purchasing personnel are thoroughly trained when it comes to using and accepting procurement cards, insisting on the exemption certificates and spotting mistaken tax.

Listen as our panel of procurement card and sales tax experts helps you get a handle on this tricky area.

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Outline

  1. Preventive Measures For Corporate Tax Departments To Consider
    1. Maintaining support documentation
    2. Working out an up-front compliance agreement with the state
    3. Planning an arrangement with the taxpayer’s P-card card carrier and finding out info that can and can’t be obtained
      1. What information can, can’t be obtained?
    4. Can P-cards be used only by certain vendors or certain purchases?
    5. Getting down to the vendor level
    6. Limits for dollar amounts
  2. Specific Corporate P-Card User Experiences
    1. General review of the company’s P-card compliance program
    2. Volume of transactions, dollars spent with cards on monthly basis, what cards are used for
    3. Details about the corporate tax department’s automated system
    4. Explanation of the logic programmed into that system in order to pay sales tax and hold use tax on a monthly basis
    5. Discussion on what the company tax department tries to do on audits when it comes to P-cards
      1. What information the department makes available or provides to auditors upon request
    6. How company tax staff deals with key P-card-related issues, such as getting electronic charge data from customer
  3. What Revenue Departments, Auditors Look For From Corporate Taxpayers In Terms Of P-Cards And Sales Tax Compliance
    1. Proposals to which revenue agencies are receptive
    2. What is expected in the way of documentation, sampling
    3. The kinds of support documentation taxpayers are typically offering
    4. Examples

Benefits

The panel provides guidance and thoroughly brief you on: 

  • Creating a procurement card recordkeeping process that is scaled to your company's size and industry.
  • Planning for audits with P-card documentation in mind.
  • Improving your compliance efficiency with adjustments needed in your own sales tax-compliance processes, both as a purchaser and seller.
  • Understanding how tax pros can take an assertive role in preparing procurement and sales staffs to use procurement cards with no sales tax mistakes.

Faculty

Sandra Robertson
Sandra Robertson
President
Robertson Consulting

She is a CPA with more than 20 years of experience in corporate finance and tax compliance work. Before launching her...  |  Read More

Steve Oldroyd
Steve Oldroyd
Tax Senior Director – Sales & Use Tax, Property Tax
BDO USA

Steve leads the Sales and Use and Property Tax Consulting Practice for BDO's western region. Previously, he worked as...  |  Read More

Steve Peck
Steve Peck
Sales and Use Tax Manager
Georgia–Pacific

He has worked for Georgia–Pacific for 23 years, the last 12 as Sales Tax Manager. He also has Big Eight...  |  Read More

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