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Liquid Engines Delivers Industry's Only Dividend Optimizer for Global Tax Management.

WASHINGTON -- Patent-pending Tax Optimizer Reduces Risk and Drives Value to the Bottom Line by Quickly and Accurately Identifying the Lowest Tax Cost Associated with Repatriating Cash from Global Operations

Liquid Engines, the leading provider of enterprise-class corporate tax management software, today announced its patent-pending international Dividend Optimizer at the Tax Executives Institute's 56th Mid-Year Conference. Building upon its expertise in tax analysis and optimization, Liquid Engines once again raises the bar by delivering ground-breaking technology that enables tax and treasury professionals to optimize a company's repatriation strategy.

Repatriation strategies affect business operations, financial performance, and financial reporting. Effective and efficient management of the dividend planning and repatriation process is critical to reducing an enterprise's exposure to risk and adding value to the company bottom line. The new international tax optimizer ensures a lowest-cost repatriation plan by considering the multi-year impact of uncovered foreign income tax, foreign withholding tax, and U.S. tax resulting from the distribution process, and at the same time giving the user the ability to provide boundary and entity constraints.

"The repatriation effort for large multi-national organizations can be as complex as a business merger. Not only does it involve many functional areas of the business, more importantly, the breadth and scope of repatriation decisions and transactions introduce a high potential for risk," said Rita Iorfida, Liquid Engines vice president, products. "The complexity is immense and the costs are high, so it is critical to make the right decision. Armed with ITx and the Dividend Optimizer, the tax organization can put forth timely recommendations that are based on thorough and accurate analysis of all the possible options."

"Liquid Engines has a far-reaching vision for tax automation," said James Fuller, a member of the Liquid Engines Advisory Board and head of the tax practice at Fenwick & West LLP. "Tax departments must simultaneously increase efficiency, effectively manage tax liability, and mitigate risk at a time when talented tax professionals are at a premium and budget constraints are tight. A solution that effectively addresses the complexity of the international tax arena, the huge number of transactions required, and the need for increased precision and transparency will be welcomed by tax departments in need of a better approach."

About Dividend Optimizer

Built into the ITx tax management software, the Dividend Optimizer is specifically designed to calculate the lowest tax cost of repatriating cash--the cost of money--from foreign subsidiaries. Combining sophisticated mathematical and economic algorithms with tax rules and corporate data, the Dividend Optimizer rapidly calculates the tax impact of hundreds--in some cases, thousands--of potential alternatives and presents the best options. Armed with this optimization technology, tax organizations are no longer hindered by manual, error-prone spreadsheet-based methodologies for creating and analyzing dividend models. Instead, they benefit from a level of efficiency, certainty, and transparency that was never before possible.

Dividend Optimizer's robust capabilities deliver high business value:

Reduce the Inherent Risks Associated with Complex Repatriation Decisions

--Provides total visibility into the tax consequences of managing cash and tax liability

--Fine-tunes the current dividend plan to tax-optimize the cash to be received from foreign operations and considers future-year tax impact

--Incorporates business- and event-specific constraints into the calculation algorithm

Quickly Respond to Changes

--Enables easy integration of changes caused by revised income forecasts, tax positions, or audit settlements

--Monitors and changes dividend plans quickly, accurately, and efficiently as major tax and business events occur

Drive Value to the Bottom Line by Minimizing Tax Cost

--Evaluates the tax consequences of all possible dividend scenarios or a specified subset of them across complex multi-tier organizational structures including 10/50, branch, partnership, and foreign entities

--Ranks the tax cost of each dividend while assessing both foreign and domestic impacts and determining the incremental tax costs across multiple tiers

A Robust Optimization Line-Up

ITx's Dividend Optimizer is the newest of Liquid Engines' easy-to-use, wizard-driven optimizers. Additional optimizers can be found in the STx software application which is designed for multi-state tax management:

--Entity Structure Optimizer--evaluates merging or splitting legal entities to minimize overall tax liability

--Apportionment Method Optimizer--considers the rules governing apportionment to determine the most appropriate method

--Transfer Pricing Optimizer--identifies the set of transfer prices that minimize tax liability

--Operations Placement Optimizer--determines, from a tax perspective, the best location and legal entity structure for a new operation, such as a factory, distribution center, or warehouse

About Liquid Engines

Liquid Engines is the leading provider of enterprise-class tax management software that optimizes tax performance in large, complex, multi-national organizations. Developed in conjunction with recognized tax experts Jim Fuller, Larry Langdon, Walter Hellerstein, Prentiss Willson, and Charles Rossotti, as well as tax executives from PricewaterhouseCoopers LLP, Intel, and Cisco, the Liquid Engines solution offers real-time data access, breakthrough optimization technology, streamlined multi-year/multi-jurisdictional modeling, and comprehensive reporting.

Unmatched in the industry, Liquid Engines' software enables tax professionals to focus on value-added decision making instead of wasting their time on data gathering and spreadsheet maintenance. This empowers the tax organization to achieve an optimal tax profile and to improve the overall efficiency, accuracy, and transparency of the tax function. Providing a real-time, integrated view of a company's global tax positions, the Liquid Engines solution enables Global 1000 companies to reduce risk, increase efficiency and effectiveness, and minimize tax liability--and to proactively leverage the tax function to enhance corporate performance. For additional information, please visit or call 408.585.9000.

Editor's Note: All Liquid Engines' brand and product names are trademarks or registered trademarks of Liquid Engines, Inc., in the United States and other countries. All other products or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.
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Publication:Business Wire
Date:Mar 27, 2006
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