In major transactions such as acquisitions and investments, the target company's past tax treatment and potential tax risks can affect both transaction value and deal structure.
It is essential to review key tax items and transaction details in advance to identify potential tax issues and the possibility of additional tax exposure.
VITAL TAX takes the time to understand the target company's business structure and key transactions, closely analyzing corporate tax, VAT, withholding tax, and other major tax matters to deliver due diligence findings that support informed transaction decisions.
We review the target company's tax filing history and key transactions to identify the overall tax status and the key focus areas for the due diligence.
02
Review of Major Tax Items
We review the appropriateness of filings and tax treatment for major tax items, including corporate tax, VAT, and withholding tax.
03
Tax Risk Analysis
We identify potential tax issues that may arise from past tax treatment and key transactions, and analyze their tax implications.
04
Due Diligence Report Preparation
We organize the key findings and potential tax risks identified during the due diligence process, and provide the findings needed for transaction decision-making.
PROCESS
Our Process
01
Understanding the Business & Transaction
We assess the target company's business structure and the purpose of the transaction, and define the scope and key focus areas of the due diligence.
02
Data Review
We review tax returns, financial data, key contracts, and transaction details, and analyze the appropriateness of tax treatment by tax item.
03
Risk Analysis
We analyze the key tax issues identified during the review and assess their potential tax risks and implications.
04
Reporting Findings
We consolidate the key findings and tax risks into a due diligence report, providing the review results needed for transaction decision-making.