Tax Due Diligence
Is your company ready to be sold? You have worked hard to build up your company and perhaps you are starting to think about a possible exit route. This may involve a sale of the company shares to a third party. Anyone looking to buy the shares will want to satisfy themselves that the company has complied with its tax obligations (as well as legal, regulatory and financial obligations) before proceeding. Any potential buyer will engage accountants and lawyers to undertake a formal due diligence process. If this process uncovers any areas that have been dealt with incorrectly, or there are areas that are considered to be at risk of HMRC challenges, this could negatively impact the saleability of your company, the price that you can expect to receive, or lead to unforeseen costs. At Old Mill we can help you prepare for any due diligence enquiries by carrying out a preparatory tax diligence exercise before the ‘real thing’, making sure that any problem areas are identified early and helping you to resolve these as far as possible. Our process is very much a ‘dress rehearsal’ for the actual due diligence process that your company is likely to be subject to, should you decide to sell your shares, so can also be informative as to the nature of the process you will undergo, should you wish to sell. Our ‘Internal Tax Due Diligence’ Process and Delivery •
Issue detailed questionnaires to the business
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Collate information from the completed questionnaires, including assisting with missing areas
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Review last three years corporation tax computations
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Review VAT returns
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Review PAYE and employment taxation reporting and compliance
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Review share history in relation to Employment Related Securities risk
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Review share scheme paperwork and implementation, if relevant
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Provide you with a detailed paper, reporting on matters which are of particular risk
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Recommend corrective action, such as disclosures to HMRC for undeclared taxes, and liaise with HMRC on your behalf, if necessary.
We can also review the ownership structure, including if you operate via a group of companies, to determine whether there are any opportunities to make a more tax efficient sale than would otherwise take place. If this service is something you would be interested in, please get in touch and speak with one of our tax experts, found here.
enquiries@om.uk | om.uk September 2024