Praveen Gupta illustrates the importance of identifying all tax risk items, including recent land transactions and the tax treatment of employees
Introduction
In the current economic climate there has been a general reluctance by shareholders to dispose of a business on the basis that the prices offered undervalues the business at this time as well as the general uncertainty that existed prior to the election.
Over the next few months we may see an increase in ‘merger & acquisition’ activities and a key part of a purchasing company’s acquisition strategy should be the ‘tax due diligence’ process. The reasons for carrying out a detailed tax due diligence are:
to provide the purchaser with a picture of the tax affairs and potential tax liabilities of the target company;
to reveal any future potential tax exposures and any unprovided tax liabilities which may impact on price;
to analyse the...
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Praveen Gupta illustrates the importance of identifying all tax risk items, including recent land transactions and the tax treatment of employees
Introduction
In the current economic climate there has been a general reluctance by shareholders to dispose of a business on the basis that the prices offered undervalues the business at this time as well as the general uncertainty that existed prior to the election.
Over the next few months we may see an increase in ‘merger & acquisition’ activities and a key part of a purchasing company’s acquisition strategy should be the ‘tax due diligence’ process. The reasons for carrying out a detailed tax due diligence are:
to provide the purchaser with a picture of the tax affairs and potential tax liabilities of the target company;
to reveal any future potential tax exposures and any unprovided tax liabilities which may impact on price;
to analyse the...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
