Tax due diligence is immensely important during the business restructuring process, particularly mergers & acquisitions, divestment, and spin-offs, as well as business dissolution. The main objective of tax due diligence is to assess the overall tax profile of the target entity. Without proper tax due diligence, an entity’s tax situation can not be determined, thus any potential inherent tax risk can not be well mitigated. Through tax due diligence, the disclosed and undisclosed data, realized and unrealized tax liabilities, and their tax risk exposure can be determined. This will help the purchaser to establish the appropriate acquisition price or funding structures. Contact us for further inquiries.
