TAX DUE DILIGENCE – MERGERS AND ACQUISITIONS

A tax due diligence is an investigative analysis into the operations of a business in order to identify tax risks and ensure that the taxpayers are compliant with the South African tax legislation. A tax due diligence is most commonly recommended with the proposal of a merger or acquisition, and the target taxpayer needs to be vetted. It can, however, also be beneficial for a company to identify any conceivable tax exposures.

By conducting an in-depth analysis, all risks and opportunities can be identified. This helps to recognise any historical tax exposures and prevent the reoccurrence of such exposures.