When should I consider Tax Due Diligence?

Tax Due Diligence is crucial during mergers, acquisitions, company restructuring, or when preparing for a sale. It ensures you have a clear understanding of the company’s tax position before making critical decisions.

What are the potential outcomes of Tax Due Diligence?

Our findings will highlight any tax risks, compliance issues, or areas where improvements are needed. We provide recommendations to address these issues, helping you make informed decisions.

What happens if tax issues are found during Due Diligence?

If tax issues are identified, we’ll work with you to develop strategies to mitigate these risks. This may involve negotiating with the other party in the transaction or addressing the issues before proceeding.

Can Tax Due Diligence prevent future tax disputes?

While it can’t guarantee immunity from future disputes, Tax Due Diligence significantly reduces the risk by ensuring that any existing issues are identified and addressed early on.

Can Tax Due Diligence affect the valuation of a company?

Yes, Tax Due Diligence can impact a company’s valuation. Unresolved tax issues or significant liabilities discovered during the process may lead to adjustments in the purchase price or deal terms.

What are the common challenges in Tax Due Diligence in Indonesia?

Challenges include navigating complex tax regulations, incomplete or inaccurate financial records, and historical non-compliance.

How does Tax Due Diligence differ from a standard financial audit?

A financial audit focuses on the accuracy of financial statements, while Tax Due Diligence specifically examines tax compliance and risks. The two processes complement each other but serve different purposes.