Control of Tax Risks and Efficiency of the Tax Model

Tax due diligence is a structured review of a company’s tax history, practices, reporting, and compliance. For investors or acquirers, it is not only a tool to identify risks but also an opportunity to optimize the tax architecture of the deal or group structure.

At Parker Russell UA, we perform tax analysis with full understanding of business logic, court practice, industry specifics, and local context. We assess both current obligations and potential tax implications of the transaction — including impact on price, earn-out structures, and deferred tax assets/liabilities.

We review:

• Corporate income tax — compliance, historical losses, material adjustments, IFRS to tax transformation, correct treatment of timing differences;
• VAT — registration status, timely invoice registration, risky transactions or counterparties, underreported/shifted input tax, fictitious transactions;
• Payroll taxes — completeness of tax accrual and payment, use of sole proprietors and self-employed, risk of employment requalification;
• Indirect taxes and other payments — excise, rent, environmental tax (where applicable), property and local taxes;
• Transfer pricing — related-party transactions, submitted reports, risk of adjustments, impact on profitability;
• Counterparties and group structure — related-party transactions, history of dealings with sanctioned or fictitious entities, supply/import/export chains from a tax perspective.