Transaction Tax ConsultingDelivering tax-efficient solutions and ultimately contributing to the financial success of the deal
AboutSpecialized Transaction taxation services to help companies traverse the complexities of M&A transactions, minimize potential tax liabilities, and maximize post-merger synergies.
Mergers and Acquisitions (M&A) transactions are complex and involve various tax implications, which can impact the transaction structure and post-merger tax position of the merged entity. It includes transfer pricing analysis, implementation of tax-efficient structures, and assistance with tax audits or controversies and also to safeguard the drafting of tax-related provisions in the deal documentation to ensure that the acquiring company is protected against any tax-related issues that may arise after the transaction is completed.
To provide Transaction taxation services, our team conduct tax due diligence on both the acquiring and target companies to identify potential tax issues that may arise during the transaction. This involves analysing the deal terms, reviewing the tax records, and assessing the tax risks associated with the transaction. Based on the findings, we provide guidance on tax structuring options that help the acquiring company minimize tax liabilities.
Moreover, we also provide ongoing tax compliance and planning assistance to the merged entity. This We provide valuable support to the merged entity in managing its tax obligations and ensuring that it complies with applicable tax laws and regulations. Overall, the importance of Transaction taxation services offered by our firm is to help companies navigate the complex tax issues associated with M&A transactions.
What are our services?
Transaction taxation services involve advising companies on the tax implications of M&A transactions and many more. These services are typically provided by our separate department who have expertise in corporate tax, international tax, and transfer pricing.
M&A transactions can be complex, involving a range of tax issues that can impact the transaction structure and the post-merger tax position of the merged entity. Following are the some of the services offered by us:
Section 281 Certificates and Compliances
At our firm, we provide Section 281 certificates and compliance services to our clients, ensuring that they comply with the income tax laws related to transaction taxation. Our team of experts assists clients in obtaining Section 281 certificates from the income tax authorities, which are mandatory for any transaction involving the transfer of shares or assets. The application should be made within 15 days from the date of the transaction. This mandates that any person who acquires or sells immovable property, shares or securities, should obtain a certificate from the assessing officer of the income tax department stating that all the necessary taxes have been paid or that no taxes are due.
Tax Planning for the Seller's Side
Tax planning for the seller’s side is a technical area that requires a deep understanding of tax laws, regulations, and the client’s business and financial objectives. Our team of experts analyses the tax implications of the transaction, including capital gains tax, stamp duty, and withholding tax, to determine the most tax-efficient structure. We advise on the use of holding companies, trusts, and other special-purpose vehicles to minimize the overall tax liability for the seller. For instance, Section 195 of the Income Tax Act, 1961, deals with withholding tax on payments made to non-residents. Our team of experts analyses the tax implications of the transaction, including capital gains tax under Section 45 of the Income Tax Act, 1961, and stamp duty under the Indian Stamp Act, 1899.
Making the Holding Structure of the Sell-Side Party Deal-Ready
Our transaction taxation services include tax planning for the seller’s side, which involves a thorough analysis of the seller’s tax position to optimize tax efficiency and minimize tax liability. We work with the seller to understand their business goals and provide tailored tax advice to maximize the value of the transaction. Our team of experts has a deep understanding of relevant tax laws and regulations and provides comprehensive guidance to ensure compliance and mitigate risk. We use our expertise to advise on tax-efficient structures and provide guidance on transfer pricing of assets. With our services, the seller can be assured of a smooth transaction while minimizing their tax liability.
Structuring the transaction
We help companies structure the transaction in a tax-efficient manner, considering factors such as the location of the acquiring and target companies, the nature of the assets and liabilities being acquired, and the potential tax implications of various deal terms.
Tax due diligence
We conduct a thorough review of the tax records of both the acquiring and target companies to identify any tax-related issues or liabilities that may arise during the transaction. This helps the acquiring company to evaluate the tax risks associated with the transaction.
We advise on the tax implications of various deal terms and help draft tax-related provisions in the deal documentation, such as tax indemnification provisions and representations and warranties.
We assist in complying with the tax filing requirements for the transaction, such as obtaining tax clearances, making tax filings, and obtaining necessary approvals from tax authorities.
We provide ongoing assistance to the merged entity with ongoing tax compliance and planning, including transfer pricing analysis, implementation of tax-efficient structures, and assistance with tax audits or controversies.
- Innovative and Customized Tax Solutions:
By offering innovative and customized tax solutions, We set ourself apart from competitors and provide clients with a distinct advantage in pursuing their M&A goals. This can include strategies such as tax-free reorganizations, tax-efficient structuring, and maximizing tax deductions and credits. By working closely with clients and understanding their specific needs and objectives, we develop creative solutions that minimize tax liabilities and enhance the value of the transaction.
- Experience and Expertise:
We have a deep understanding of transaction taxation, as well as extensive experience in managing complex M&A transactions, provide clients with a level of confidence and assurance that is essential for success. This can include experience with tax due diligence, tax reporting, and regulatory compliance, as well as a strong understanding of the latest tax laws and regulations. By demonstrating expertise and track record of success, we have build a reputation as a trusted advisor and partner for clients seeking taxation services.
- Communication and Client Service:
Effective communication and client service are essential in any successful transaction, and we prioritize these factors to provide clients with a superior experience. This can include providing clear and timely communication throughout the transaction, being responsive and accessible to client inquiries and concerns, and delivering high-quality services at a fair and reasonable price. By demonstrating a commitment to client service and communication, we hope to build strong and lasting relationships with clients.