Due diligences support the potential sale of a company or help to pave the way for external investments. The purpose here is to provide a proper foundation for estimating the company’s market value and the anticipated interest from investors, whilst also providing help to minimise the tax risks disclosed.
Quantification of tax risks
Areas that fall short of compliance during a due diligence are subject to a more detailed examination, and we quantify the risks, both in connection with tax and accounting problems. Our tax experts are well-prepared, and always take into account the capacities of the team performing the due diligence at the client; if significant findings are made, the client is notified immediately.
We generally carry out our examinations before the limitation period expires, taking into account any tax authority findings for closed fiscal years as well.
Would the NAV find everything in order?
Similar examinations can be conducted not just during the planned sale of companies, but also if company owners or management would like to gain some assurance that the tax authority would find everything is in order were it to conduct a comprehensive and detailed tax inspection. During such a due diligence examination we focus on the same inspection areas and tax types as the tax authority, making proposals to reduce or eliminate the risks for the problems detected.
At the end of certain periods it is worthwhile checking the tax implications of transactions in the period. By involving our company you can identify incorrect procedures and improve the treatment of business events entailing tax risks. The primary purpose of tax reviews is to reduce the amount of penalties, additional taxes and late payment interest that could be imposed during an inspection by the tax authority.
Tax reviews include examining the internal processes based on which our clients assess their tax liabilities and prepare returns. Taking samples on a test basis, we look at whether the amounts of tax liabilities were properly assessed, declared and paid. Tax reviews also provide an opportunity for us to make recommendations with a view to eliminating tax risks.