The purpose of a tax review; i.e., a partial or comprehensive review of a company’s or group of companies’ tax practices can be various:
- tax due diligence reviews may be connected to acquisitions; in that case the purpose of the tax due diligence exercise to identify areas that may represent tax related risks and tax exposures in the tax practice of the targeted company prior to the conditions of the acquisition (acquisition price, guarantees, indemnities, etc.) are agreed and set by the parties;
- tax reviews may be connected to the planned alienation of companies; the purpose of such review is to provide the seller with an overview of the tax position of the company alienated and the risks therein and to support the selling procedure. Tax reviews may also provide the opportunity to identify and correct inaccurate tax practices so that the seller may achieve a more favorable position during negotiations;
- the risks of maintaining or entering into a business relationship with a partner (buyer or supplier) may be assessed through tax due diligence review of the partner’s practices;
- identifying the risks associated with financing (mainly bank financing) of a company;
- overview of the tax position of a company or a group of companies to support the reorganization steps (e.g., merger of companies) and estimate the impact of restructuring steps on the tax position of the companies involved and at group level; identifying saving opportunities and ways to achieve favorable tax position;;
- preparation for tax authority audits and for corrections of potential errors in tax practices prior to initiation of tax authority audit.
- Comprehensive tax due diligence reviews
- Year-end tax review
- Review of tax practices connected to selected activities or procedures
- Review of selected areas of taxation
- Assistance in relation to preparation for and administration of self-corrections
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