Tax Due Diligence
Tax due diligence
At various stages in their life cycles, companies may need an external expert to assess their tax processes, identify potential tax risks or confirm that they are legally meeting their tax obligations.
Tax due diligence is perhaps most often associated with M&A transactions and is typically carried out in the interest of the potential buyers or investors. However, it is not uncommon to have a so-called seller-side tax due diligence, where the seller prepares itself for a future acquisition from a tax perspective.
The other common area of tax due diligence is when a company has some or all of its tax processes reviewed by an expert in preparation for a tax audit performed by the tax authorities.
In addition to the two possibilities above, there are of course many other cases, where a tax due diligence is needed, ranging from the purpose of restructuring a group of companies, to optimising the financing structure, to creating a more tax-optimal supply-chain.
Our experience
Over the past three decades, we have conducted dozens of tax due diligence assignments, where the companies we have audited operated on various fields, ranging from - among others - insurance, building management, and waste processing, to agricultural business, for instance.
As a result, we have understood the taxation and potential tax risks of a wide range of business areas, thus we can support our clients in their M&A projects quickly, efficiently, directly and thus at very competitive fees.
Our experience is mainly gained from the medium-sized company range [turnover HUF 5-100 billion, number of employees 50-2500] and we have been involved so far in several international projects for the sale or acquisition of a group of companies operating in different countries, where we have mainly provided the tax due diligence of the domestic companies, but in a close cooperation with the projects' foreign members.
Our services
Besides the comprehensive, detailed due diligence covering all relevant taxes, we also perform limited tax due diligence focusing only on priority areas or only on significant tax risks.
We also provide tax advisory support to our clients regarding the implementation and the execution of the M&A transaction, the development of the most optimal tax solutions and in the preparation of the tax-related documents and agreements regarding the sale.