What is it?
Specialist accounting and tax advice to cover all aspects of project finance, PFI and PPP transactions. We also advise on modelling, accounting and tax assurance issues.
What we do
We assist clients in providing tailored accounting and tax advice on adopting suitable and beneficial assumptions with regard to project financing, PFI and PPP transactions. For example, advice may be required in a bid process to identify beneficial accounting and tax assumptions which can be adopted within a financial model or supporting a client during the concession period to help identify the most advantageous accounting and tax treatments.
Topics which we advise on include:
- Advising on whether an 'on' or 'off' balance sheet treatment should be adopted for the project property, based on the criteria laid out in FRS5 Note F (UK GAAP) or IFRIC 12 (IAS/IFRS)
- Considering the scope for alternative accounting and tax treatments (e.g. services revenue recognition and finance debtor amortisation profiles under FRS 5) which may result in significant benefits on the dividend payment profile and / or tax payments
- Advising on relevant IFRS accounting issues and the differences between the respective IFRS and GAAP standards
- Preparing, submitting and agreeing trade applications with HM Revenue & Customs (HMRC)
- Ensuring that, where possible, any capital contributions/gifts of surplus land are tax-free
- Considering the likelihood of interest on subordinated debt being challenged by HMRC and the applicability of the UK to UK transfer pricing rules generally.
The benefits to you:
Drawing on our experienced tax and accounting professionals, we can provide tailored and flexible solutions by:
- Identifying the most advantageous accounting policies for your projects
- Assisting you in adopting alternative accounting or tax policies which may be more efficient than your base case assumptions
- Providing comfort on the appropriateness of existing accounting and tax assumptions
- Providing early HMRC comfort on proposed tax treatments
- Ensuring tax and accounting treatments are compliant with relevant tax legislation and accounting standards.
Why PKF?
PKF has had a niche specialism in project finance, PFI and PPP transactions in excess of 20 years. Our team are familiar with the accounting and tax issues typically encountered in project financing, PFI and PPP transactions.
PKF’s extensive experience derives particularly from our market-leading position in Financial Model Audit and Assurance, which enables us to keep constantly up to date with current accounting best practice and relevant tax rules. In recognition of our experience, we are regularly invited to make presentations to project sponsors, funders and the wider PFI community on relevant accounting and tax issues and updates.
We can provide a rapid response, utilising PKF’s international network to draw on the services of accounting and tax experts worldwide. We have advised clients in most sectors including, infrastructure, accommodation, health, education, training, law and order, oil and gas, transport, power and energy (including renewable energy), mining, water and waste.
For more information about any of these services offered please contact Brian Tash or Kirit Mistry.
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