Renovation and reconstruction of an apartment building in Prague

26.6.2013

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Gradual expansion of services until attaining the comprehensive service portfolio that our company now offers.

Introduction

Co-operation began in 2011 with the provision of tax consultancy as part of a project to renovate and reconstruct an apartment building in the Vinohrady district of Prague. Shortly thereafter, we expanded our consultation service to include managing the accounting, auditing services and the valuation of structures and land (both for market purposes and in terms of tax on the transfer of real estate).

"We are working together with the consultancy group APOGEO, which focuses on the activities of property developers from the tax perspective. We were really pleasantly surprised by APOGEO’s professional approach to resolving the tax and accounting aspects of property development projects. We used their services, for example, when applying the VAT rate for constructing apartments, or when sorting out issues thrown up by certain investments. Besides which, they kept us updated about forthcoming changes in the tax legislation and warned us how best to proceed in order to head off any unpleasant predicaments. It’s important to know that we are working with experts in their field, people on whom we can rely in every respect."

Michal Kunrt, partner BM Develop

Progress of the job

As part of our services, we carried out cash-flow calculations, for example, in particular in relation to VAT (claims for deducting and reducing input VAT). Subsequently, our collaboration widened to include some of the client’s other projects, as part of which we performed similar calculations, balance projections and general tax optimization procedures. Other areas that we are currently focusing on include transaction consultation, in particular company conversions and the structuring of transactions.

The plan is to create a holding structure that would help optimize cash-flows and make the ownership structure more transparent. We also expect our services will be called upon when it comes to setting transfer prices.

Conclusion

APOGEO’s services have helped significantly reduced the cost and length of the planned processes. Using of our modelling and calculations, we were able to achieve a marked improvement (acceleration) in communications between our client and the banks, especially when it came to loans; this enabled faster progress in the development of the planned projects and better cash-flow in general.

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