Tax Due Diligence – safety and security in every transaction

Every business decision, especially those related to mergers, acquisitions or investments, involves tax risks. Tax Due Diligence is a process of in-depth tax analysis of a company to identify potential risks, hidden liabilities and optimisation opportunities. EFEKTA Accounting Office offers comprehensive tax Due Diligence services, providing the reliable information needed to make informed business decisions.

What is Tax Due Diligence?

Tax Due Diligence is a detailed tax analysis of a company aimed at:

• Identifying the tax risks – detection of possible irregularities, tax arrears and hidden liabilities.
• Assessing the regulatory compliance – verifying that the company conducts its accounts in accordance with applicable regulations.
• Understanding the tax structure – analysis of settlement methods, applicable tax credits and burdens.
• Identifying the opportunities for optimisation – identifying areas that can be streamlined to reduce tax liabilities.

When is it worth conducting Tax Due Diligence?

Tax Due Diligence is indispensable in situations such as:

1. Mergers and acquisitions
   An acquisition of a company also carries the risk of assuming its tax liabilities. Due Diligence allows a company’s tax position to be accurately assessed.
2. Selling shares or a company
   For the seller, it is a way to present the tax situation fairly and for the buyer, it is a guarantee of an informed investment.
3. Restructuring a company
   This process requires a thorough tax analysis to identify the possible risks and benefits of transformation.
4. Investor entry
   Before making an investment decision, investors require full transparency, including on taxes.

Our Tax Due Diligence services

At the EFEKTA Accounting office, we offer comprehensive support in terms of tax Due Diligence. Our operations include:

1. Historical analysis
   We check the consistency of PIT, CIT, VAT tax returns and other liabilities over the years.
2. Verification of applied reliefs and exemptions
   We examine whether tax reliefs, such as the IP Box or the R&D relief, are applied correctly and in accordance with the regulations.
3. Audit of documentation and settlements
   We conduct a detailed review of accounting documents, invoices, tax records and contracts to ensure that all settlements are compliant.
4. Identification of tax risks
   We analyse whether the company is meeting its tax obligations, eliminating the risk of hidden liabilities.
5. Preparation of final report
   We produce a report containing key findings, identification of risks and recommendations for further action.

Benefits from Tax Due Diligence

1. Risk minimisation
   Tax Due Diligence avoids unexpected tax liabilities that could affect a company’s financial position.
2. Credibility in the eyes of investors and partners
   A reliable tax audit builds trust and increases the value of a company in the eyes of potential investors.
3. Optimisation opportunities
   The tax analysis identifies areas that can be optimised to reduce the tax burden.
4. Transparency
5. Due Diligence provides full transparency on tax issues, which is crucial in sale, acquisition or restructuring processes.

Why choose EFEKTA?

1. Experience in tax analysis
   Our team are specialists with many years of experience in carrying out tax Due Diligence for companies in various industries.
2. Individual approach
   We tailor each project to the specifics of the company, its operations and its transactional needs.
3. Reliability and detail
   We ensure full compliance and take into account every detail to make the report complete and transparent.
4. Support in transaction processes
   We assist in negotiations by offering data and analysis that can influence favourable transaction terms.

Security of your transaction starts with Due Diligence

Tax Due Diligence is a key part of any business transaction. With EFEKTA’s services, you gain a complete tax picture and minimise financial risks. Our experience and professionalism are a guarantee of informed business decisions.

Contact us today to find out more about our services. Make an appointment for a free consultation and find out how safe and beneficial your transactions can be.

EFEKTA – Your security in taxes.

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What exactly is Tax Due Diligence?

It is an in-depth, multi-level analysis of a company’s tax situation. Its purpose is to detect any potential irregularities, hidden arrears, and to assess whether the company is reliably fulfilling its obligations towards the tax authorities. This prevents a scenario where an investor acquires an entity with “hidden costs” in the form of tax penalties.

Why is a tax audit essential during mergers and acquisitions?

Acquiring another company often means taking over its tax history and liability for potential errors from previous years. Tax Due Diligence allows for the pricing of these risks before the transaction is finalized, which can serve as a basis for price renegotiation or securing appropriate clauses in the agreement.

Which areas of taxation are subject to verification?

EFEKTA’s experts analyze the historical compliance of VAT, CIT, PIT declarations, and other liabilities. We verify the accuracy of accounting documentation, records, invoices, and commercial contracts. We also examine whether the tax reliefs applied by the company (e.g., IP Box or R&D) have been implemented in strict accordance with regulations.

When, apart from buying a company, is it worth conducting such an audit?

This audit is also crucial during:

• The sale of shares: to validate the company in the eyes of the buyer and confirm the absence of risks.
• Restructuring: to safely execute ownership transformations.
• Seeking an investor: as a key element of building transparency and trust.

What does the final Tax Due Diligence report contain?

The report compiled by EFEKTA is a comprehensive document containing the key findings of the analysis. In it, we point out identified risks, evaluate their potential financial impact on the transaction, and present specific recommendations on how to rectify errors or optimize settlements.

Can Due Diligence bring savings to a company?

Yes. Beyond identifying threats, this process frequently highlights areas where a company is not exercising its entitled rights. A tax analysis can reveal opportunities for safe optimization, which in the long-term perspective reduces the enterprise’s fiscal burden.