Tax can be a significant cost during a merger or acquisition process if not managed properly. The South African legislation allows for specific provisions for group restructuring that can result in deferral of certain taxes thereby decreasing the tax costs of the restructuring transaction. Our mergers and acquisition team can assess the tax implications of the reorganization for possible capital gains, VAT and of the reorganization to the end shareholder.
Our services include:
- Review of the restructuring agreements
- Tax implications of financial instruments that will be used to effect the transaction for the entities involved and the end shareholders
We also assess the accuracy of the taxation balances included in the business valuation, including the assessment of the risk related to underpayment of taxes and other related non-compliance issues from prior period’s assists your tax and finance departments with the recalculation of the tax expenditure and other tax balances, supporting schedules and the effective
tax rate to ensure accuracy, completeness and existence of tax balances disclosed in the financial statements prior to the submission of the financial statements to the auditors.
Our experienced team is well equipped to provide up to date practical solutions to suit our client’s needs