Understanding the tax structure of an entity, its applicable provisions right through investment, operations, effect on profit, dividend distribution as well as at the time of exit and repatriation is the single most important business decision one may have to make.

The purpose of the tax due diligence is to identify tax risks and to provide recommendations on how to mitigate them during the M&A process. The result of our work is presented in form of a report concerning the tax position of the entity along with the presentation and assessment of tax risks. Tax issues identified during the tax due diligence are subject to negotiations regarding respective representation and guarantee clauses as well as indemnification clauses to be provided in the share purchase agreement and can have an impact on the price calculation.

At VRC, we have an experienced team to examine and bring out the tax structure and complexities of the deal under consideration.