Perspectives

How Pillar Two raises the bar for M&A integration and tax compliance

Tax system integration in mergers & acquisitions

A version of this article first appeared in International Tax Review in March 2025.

Deloitte’s Erin DeHaven, Brad Ford, Bart Janssen, and Tom Picton-Turbervill offer guidance for tax leaders on the data, process, technology, and people challenges that arise when organizations go through mergers and acquisitions (M&A) and explain how Pillar Two compliance raises the stakes. 

When a company undertakes an acquisition, tax leaders must manage an exceptional set of hurdles. Imagine grappling with disparate tax data scattered across incompatible systems in two distinct organizations. Factor in divergent processes, technology choices, and the looming uncertainty surrounding compliance postures–particularly those of the acquired entity, which might not resonate with the acquirer’s perspective. This intricate web of complexities demands meticulous attention and strategic foresight from tax leaders. 

Still, the acquiring organization needs to be ready to meet compliance obligations and complete provisioning tasks almost immediately post-close. Developing a plan for tax from the moment the transaction is agreed and making good use of the period from announcement to deal-close will be vital for success. 

Now, consider the added complexities of Pillar Two compliance and the new data requirements these rules create. Tax teams may already be straining as they try to ensure they have the granular data and the systems they need to make accurate tax calculations at the entity and jurisdiction level, as Pillar Two demands. New global minimum tax requirements clearly add complexity and urgency to the tax team’s mandate, locally and centrally, in any merger integration process.

Download the full article to discover how to:

Gain visibility: Learn how to quickly gather and organize tax-related information from the acquired organization to ensure a smooth integration.

Build smart: Understand the importance of preparing for Pillar Two compliance by establishing robust systems and processes during the M&A planning and execution phases.

Seize the merger moment: Explore how to leverage the merger as an opportunity to innovate, upgrade systems, and enhance the overall tax function for long-term efficiency.

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