Return on Investment

Major transportation supplier hires QSM as expert witness, reduces tax liability by $50 million

Challenges 
A major transportation provider faced a huge tax liability related to a software portfolio that they acquired in a merger. They hired QSM as an expert witness to determine how much the software initially cost to build.
Solution 
QSM started by using historical productivity data from the time period when development took place. Then, using a size distribution that was representative of their portfolio, QSM was able to determine the development cost of the portfolio and were able to definitively predict the cost within a certain boundary that resulted in the client reducing their tax liability by $50 million.
Outcomes 
The client was able to settle out of court and reduce their tax liability by $50 million.

Summary

A major transportation provider faced a huge tax liability related to a software portfolio that they acquired in a merger. They hired QSM as an expert witness and reduced their tax liability by $50 million.

Solution