A tax due diligence should be conducted before acquiring a new business
in order to have sufficient insight into the company’s tax position. This implies that a thorough analysis is conducted with regard to the different taxes applicable to that specific company. The main goal of a tax due diligence is to ensure that the person acquiring the company is aware of outstanding tax liabilities, current disputes with tax authorities and other tax aspects that may be of importance. Without a properly conducted tax due diligence, the acquiring company may be exposed to tax unforseen tax risks.
Our tax due diligence process starts with a thorough analysis of the debtor’s list as provided by the tax authorities. Subsequently, our experts analyze the tax returns that have been filed in the past by the company that will be acquired. This analysis includes both a correctness and a completeness check.
Upon the clients’ specific request we can analyze different areas of tax, including but not limited to: corporate income tax, wage tax and social premiums, sales tax, real estate tax, internal transactions with related entities and other aspects of taxation in general.
A tax due diligence is of utmost importance in order to identify and mitigate tax risks before acquiring a company.
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Our experts provide assistance to clients who are in the process of an acquisition or sale of a company. They have extensive experience with providing tax due diligence services to both local and foreign clients. During these services, our experts add value to the clients by identifying all possible risks and tax liabilities that should be taken into consideration when negotiating an acquisition price. Additionally, our professionals have a deep understanding of the Dutch Caribbean’s tax law and unique challenges and therefore are able to guide small, medium-sized and large companies through this process.