ProCo LeaseCo Tax Strategy

Odessa offers consulting services and a dedicated “captive leasing software” product-line, LeaseWave Captive, aimed at assisting mid to large sized corporations in employing various tax strategies for the purchase, use and management of their internal assets. Companies that purchase a high volume of assets, for instance, may benefit from setting up a leasing entity to act as a procurement agent that leases to the parent company, potentially resulting in deferred sales and use tax payments paid on lease-payments over time (when compared to those paid upfront on asset purchase). Trade-in credits for obsolete assets, benefits from like-kind exchanges, rebates and credits obtained from volume purchases, etc., are all strategies that can result in tax savings. Odessa’s consulting services supplemented by specialized captive leasing software, LeaseWave Captive, are set up to manage each strategy.

Lease vs. sell decisions

• Automatically analyze each procurement to determine whether to lease or to sell
  • Download all asset purchases directly from the GL/Asset Management system
  • Based on asset location determine whether or not there is benefit to leasing
  • If there is benefit, automatically book a lease to the parent company
  • If there is no benefit, sell the asset to the parent company
• Manage all booked leases without any manual intervention
  • Monthly “perfect-pays” are carried out by the system through a scheduled update
  • Sales & use tax compliance (on lease payments) are automatically managed
  • All GL entries are uploaded back to the GL
• Download ongoing asset transfers and terminations directly from GL
  • Based on download information, automatically determine impact to lease
  • Automatically adjust leases for partial terminations, transfers and terminations
  • Generated GL entries are uploaded back to the GL

Configurable entity structure

• Setup any relationship between business, operating and reporting units
• Flexibly reconfigure to accommodate future restructures
• Automate the generation of intra and inter-company entries
• Generate reports, user-defined and canned, for all standard analysis

Integrate all transaction entries directly from captive leasing software to the GL

• Automatically download asset information from GL/Asset Management via dedicated service
  • Purchases
  • Full and partial transfers
  • Terminations
• Auto-generate all accounting entries for each transaction
• Update entries directly or by batch to the GL system via dedicated service