Consulting services for investors: tax due diligence and tax structuring

Consulting services for investors include:

• Tax due diligence – diagnostics of the company's activities to identify and mitigate tax risks. The tax due diligence includes:
  
  • Review of the company's financial and tax reporting
  • Checking of whether the Ukrainian basic taxes (including CIT, VAT, withholding tax, PIT and related mandatory contributions, etc.) are accrued correctly
  • Overview of the key methods of managing the company's tax burden
  • Overview of the company's key typical and non-standard transactions and analysis of completeness and accuracy of their tax accounting
  • Overview of tax exemptions and incentives and confirmation of the company's right to use them
  • Analysis of transactions with related parties and non-residents
  • Analysis of tax assets and tax discounts, and confirmation of the company's right to use them
  • Identification of risks of future additional tax accruals, assessment of their level and the amount of possible additional accruals of tax and penalties; provision of investors with recommendations on a proposed acquisition and mitigation of such risks in the future
• Other consulting services for investors include:
  • Tax structuring:
    • Legal structure analysis of the investor and the company being acquired
    • Recommendations on the agreement structure that is effective in terms of taxes and allows:
      • Effective acquisition of a company or fund raising
      • Effective profit sharing mechanisms for investors
      • Effective withdrawal strategy – future sale of the company or attraction of additional investors
    • Recommendations on changing the company's operational structure for mitigating tax risks (if required)
  • Review of company acquisition agreements and recommendations on amending such agreements to protect the investor from tax risks
  • Other consulting services:
    • Analysis of tax implications for non-resident investors' planned transactions in Ukraine
    • Recommendations on alternative opportunities for setting up business in Ukraine and assessment of key tax advantages and disadvantages