CRB has optimized its services for tax exempted legal entities such as registered societies and associations.
The annual audit of financial statements is either a voluntary audit or is required by regulations in the statutes. Principles of an audit are similar to the statutory audit required by law for certain commercial companies.
The auditor’s opinion on whether the financial reporting gives a true and fair view in accordance with the relevant reporting standards is the basis for an assessment of effectiveness and efficiency by the general assembly or internal auditors of the entity.
Audits are performed in accordance with the professional standards of the Institut der Wirtschaftspruefer in Deutschland e.V. (Institute of Public Auditors in Germany - IDW)
By auditing financial statements, the management of a nonprofit organization reduces liability risks and documents professional management control.
Accounting issues are assessed according to or similar to commercial law and take into consideration the special requirements of different legal entities (for example IDW RS HFA 14, IDW RS HFA 5, IDW PS 740, IDW PS 750). Additionally, assessment of tax risks and liability situations can be included as well as general business aspects.
Continuous and project-related tax consulting acknowledges the conflict between business efficiency and legal restrictions due to the tax exempt status.
For nonprofit entities various special questions arise from §§ 51 ff German General Tax Code (Abgabenordnung) which regulate the tax exemptions. CRB can analyze different aspects and give opinions and advice.
Business or industry associations in Germany on the other hand have partially different regulations to follow. CRB offers advice on sales taxes (VAT) and income taxes and corporate law as well as various services to economically optimize your business and reduce tax risks.