Overlooked taxes in M&A transactions can constitute a large burden. Information highlighting the main warranties and indemnities, opportunities for tax planning and tax liabilities, acquired from a tax due diligence service can be very useful to potential acquirers.
Tax due diligence includes a review of the income and corporate revenue tax returns in addition to the Value Added Tax (VAT) collections with the local authorities in order to detect any non-compliance which may result in large surcharges, interest and penalties.
After researching and evaluating the status of the business, we provide clients with the appropriate information enabling them to make decisions leading to rewarding future outcomes. Due diligence also includes full disclosure of the company’s obligations, such as debts, pending and potential lawsuits, leases, warranties, long-term customer agreements, employment contracts, distribution agreements, compensation arrangements, and so forth. This is very useful for evaluating representations and warranties, negotiating price concessions, and verifying that transactions are in compliance with the investment or acquisition criteria.