Zach Citron explains why the tax department plays the star role in so many group reorganisations – and offers some practical tips
What makes groups reorganise?‘Group reorganisation’ is used here not as a term of art but rather to describe transactions which essentially ‘rearrange the furniture’ within the corporate group as an economic unit.
An observer of the group from the outside – a reader of the group’s consolidated financial statements say or an outside customer – sees no change as a result of the reorganisation itself.
Of course group reorganisations are undertaken to achieve benefits – and over time those benefits should indeed come through in the group’s financial results or otherwise...
