The paper explores the options for credit rating consultancy by the tax advisory branch in Germany.
In terms of method in follow-up to introduction and definition, the subject is split into four partial theses. The theses explore in the theoretical part the options provided by the law of tax advisors for credit rating advisory services by tax advisors and training and education options to gain professional competence in credit rating consultancy. In the research part in two surveys, insights are sought on the need for credit rating advisory services and its current implementation status by the tax advisory branch.
The discussion expIores the relevant market potential and respective income potential in fees. A novel aspect this approach entails is exploring the offer side for credit rating advisory services by tax consultants and the resulting insights for the tax advisory branch and individual tax consultancies.
Table of Contents
1 Introduction
1.1 Basics on Market Trends in the Tax Advisory Branch
1.2 Competitive Pressures upon Tax Consultants by Other Service Providers
1.3 Extension of the Scope of Operations in Response to Market Trends
2 Objectives and Methodology
2.1 Main Objectives of the Theses
2.2 Basic Thesis Breakdown into Partial Theses
2.3 Transforming the Partial Theses into Hypotheses
2.3.1 Generally on the Hypotheses
2.3.2 Hypothesis from Partial Thesis 1
2.3.3 Hypothesis from Partial Thesis 2
2.3.4 Hypothesis from Partial Thesis 3
2.3.5 Hypothesis from Partial Thesis 4
2.4 Method for Verifying the Partial Theses
2.4.1 Method for Hypotheses 1 and 2
2.4.2 Method for Hypothesis 3
2.4.3 Method for Hypothesis 4
2.5 Methodology of the Empirical Surveys
3 Survey of Literature und Research
3.1 Literature on Credit Rating Consultancy
3.2 Current Research Status
3.2.1 Research Status in Credit Rating Consultancy
3.2.2 Research Status in the Implementation of Credit Rating Advisory Services
4 Results
4.1 Result for Hypothesis 1
4.1.1 Restrictions on Credit Rating Advisory Services for Tax Advisors
4.1.2 Verification of Hypothesis 1
4.2 Result for Hypothesis 2
4.2.1 Qualifications for Tax Advisors
4.2.2 Verification of Hypothesis 2
4.3 Result for Hypothesis 3
4.3.1 Return Rate in the Survey
4.3.2 Evaluation of the Online Survey – Rating Practices by Banks
4.3.3 Evaluation of the Online Survey – Bank Internal Measures
4.3.4 Evaluation of the Online Survey – Impact on Rating
4.3.5 Verification of Hypothesis 3
4.4 Result for Hypothesis 4
4.4.1 Evaluation of the Online Survey – Current Credit Rating Advisory Services
4.4.2 Evaluation of the Online Survey – Future Potential
4.4.3 Verification of Hypothesis 4
5 Discussion
5.1 General on Analysis of the Survey
5.2 Market Challenges for Tax Consultants
5.2.1 Market Challenges for Tax Consultancies
5.3 The Implementation of Credit Rating Advisory Services by Tax Advisors
5.3.1 Credit Rating as an Area of Operations for Tax Consultants
5.4 Assessment of Market Chances of Credit Rating Consultancy
5.5 The Potential for Credit Rating Consultancy
6 Conclusion
6.1 Summary and Results of the Empirical Survey for Banks
6.2 Summary and Results of the Empirical Survey for Tax Consultants
6.3 Summary and Results
6.4 Contribution of the Effort Herein
Objectives and Core Topics
The primary objective of this work is to analyze whether credit rating advisory services are a viable and permissible area of operation for tax consultants in Germany, specifically investigating the demand for such services, the necessary qualifications for advisors, and the current state of implementation within the tax advisory branch.
- Market dynamics and competitive pressures facing tax consultancies.
- Legal framework and permissibility of credit rating advisory services for tax advisors.
- Empirical verification of demand for credit rating services via bank surveys.
- Implementation status and future potential of credit rating consultancy in Germany.
- Strategic marketing and qualification requirements for tax professionals.
Excerpt from the Book
5.3.1 Credit Rating as an Area of Operations for Tax Consultants
New fields of consultancy are identifiable – both in internal and external rating. For tax consultants, this implies as core part consultancy in internal rating.
The majority of clients of tax advisors comprise small and medium-sized enterprises. Large enterprises typically employ their own rosters of specialists which leaves small room for consultancy services by tax advisors.
The involvement of tax advisors by now in creditworthiness assessment of their clients as borrowers from banks was limited up until the inception of Basel II to compiling annual statements and in-period business assessments in order to keep track of client’s economic status. The criteria for needed client data and for extracting and collecting which tax advisors offer their professional hand in the meantime have become more demanding. According to Ries, M., tax consultants have evolved as peers into natural communication partners to credit specialists with banks.
Temporal aspects also are affected by the rating criteria. Annual statements need to be supplied by tax consultants preferably early in order to be usable as references in negotiations with banks and to comply with the needs of an anticipative information policy. Protracting the completion of a less favourable annual statement is no meaningful strategy as the bank in internal rating is likely to view a lacking annual statement as poor sign, or negative value.
Further the scope of consultancy of tax advisors also is identifiable with active support to the rating process. The consultancy must not remain limited to quantitative rating factors but should extend considerably beyond those instead. The focus in credit rating consultancy in this respect should be on the preliminary phase prior to the actual rating process.
Consequently, the tax consultant needs to have an active role in shaping the "credit story". That means exploring the causal background and facts fit to establish sufficient creditworthiness of the client and linking up the respective points in argumentation.
Summary of Chapters
1 Introduction: Provides an overview of current market trends in the tax advisory branch and the increasing competitive pressures necessitating an extension of operational scopes.
2 Objectives and Methodology: Outlines the research goals and the breakdown of the primary thesis into four specific, verifiable partial theses through empirical surveys.
3 Survey of Literature und Research: Reviews existing academic literature and current research statuses regarding credit rating consultancy and the professional role of tax advisors.
4 Results: Presents the findings from the empirical investigations, focusing on the legal permissibility, qualification needs, and practical application of credit rating services.
5 Discussion: Analyzes the survey results in the context of market challenges, strategic development, and the substantial fee potential of credit rating services.
6 Conclusion: Summarizes the key findings, confirming the positive effects of tax consultant involvement in ratings and the significant untapped potential for the branch.
Keywords
Tax Consultants, Credit Rating, Advisory Services, Basel II, Market Potential, Professional Qualifications, Empirical Survey, Bank Rating, Financial Statements, Fee Potential, Service Innovation, Tax Advisory Branch, SME Consultancy, Rating Analyst, Strategic Consulting.
Frequently Asked Questions
What is the fundamental focus of this research?
The work investigates the implementation and potential of credit rating advisory services offered by tax consultants in Germany, particularly in response to changing market conditions and Basel II regulations.
What are the central thematic fields covered in this study?
It covers the market environment for tax advisors, the legal permissibility of providing rating advice, the demand from banking institutions, and the required qualifications for practitioners.
What is the primary research goal?
The goal is to prove that credit rating advisory services represent a significant, viable, and under-utilized market opportunity for German tax advisors that can help them overcome economic crises.
Which scientific methodology is applied?
The research utilizes desk research to establish the legal framework and employs dual empirical surveys—targeting both bank corporate customer consultants and tax advisors—to collect quantitative data.
What aspects are addressed in the main body?
The main body examines the competitive pressures on tax firms, the specific role of tax advisors in rating processes, qualification paths like "Expert Consultant in Rating Matters", and potential fee structures.
Which keywords characterize this paper?
Key terms include Tax Consultants, Credit Rating, Advisory Services, Market Potential, Basel II, and Empirical Survey.
How do banks generally perceive the involvement of tax consultants in the rating process?
The study finds that banks largely view the involvement of tax advisors positively, noting that it often leads to improved data quality and that bank specialists frequently contact tax consultants for clarification.
Are there specific legal restrictions for tax advisors in this field?
No, the research confirms that credit rating advisory services are considered compatible with the law of tax advisors as they fall under economic consultancy and expert appraisal activities.
What is the identified fee potential for this new service?
Based on survey data, the potential is estimated at approximately 55,000 euros per tax consultancy, amounting to roughly 2 billion euros for the entire German branch.
- Arbeit zitieren
- Dr. Thomas Laufer (Autor:in), 2011, Research Survey - Credit Rating Tax Advisory by Tax Advisors, München, GRIN Verlag, https://www.hausarbeiten.de/document/189264
