Since taxes can constitute a large burden ifthey areoverlooked inM&A transactions, the
information arising from the tax due diligence can be very useful to potential
acquirers. It will highlight the main warranties and indemnities, show opportunities
for tax planning and show any tax liabilities.
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 unveil any non-compliance
which may result in large surcharges, interest and penalties.