Tax Due Diligence

Tax due diligence is the process of carefully examining a company’s tax-related information before a business transaction, such as a merger or acquisition. It involves reviewing tax returns, compliance status, and potential liabilities to identify any risks or issues. This assessment helps buyers understand any past tax problems that could affect the deal’s value or lead to unexpected costs. Essentially, it ensures both parties are aware of the tax obligations and liabilities involved, promoting transparency and informed decision-making in the transaction.