Tax due diligence

Tax due diligence

For most of the China Mergers and Acquisition deals, tax exposures of the target company will be always possible carried over to the purchaser.  In order to control the tax risks and find the major hidden tax exposures which will significantly affect the investors’ assessment on the investment opportunities, it is advisable for the foreign investor to arrange a proper tax due diligence review of the target business to identify tax risks, make adjustments to the purchase price and to add sufficient warranties and indemnities.
 
Our tax professionals can provide a view of the tax risks of a company’s operations, a wealth of transaction tax experience and a detailed review and analysis of your target company’s tax position.

Our Tax Due Diligence services include:

To identify significant tax issues that could impact the proposed acquisition in order to protect the purchaser’s         interest
To assess tax compliance of the current operations and tax positions of the target company
To quantify the potential major hidden PRC tax liabilities or exposures, especially those recurrent tax events which         may affect the deal price and future earnings of the target
To assist in tax structuring transactions in a tax-efficient manner
To advise a post-deal structure which ensures tax efficiency