Due Diligence is an review procedure designed to provide reliable information on a target company that includes investment risks assessment, independent valuation of a target company, comprehensive investigation of company activity, complex examination of its financial condition and market position. Such procedures are normally held prior to any business acquisitions, merger transactions, signing a contract or starting cooperation with a certain company.
Our skilled personnel will help investors to get the best information on a target company (object), to define (find out) and evaluate existing legal and financial risks.
Following the adoption of the Tax Code of Ukraine (TCU), consolidation of business has occurred, the popularity of M&A transactions has raised, considering that corporate reorganization procedure has been completely revised and settled.
In particular, it is established a clear position regarding:
- Presentation in tax accounting of carrying amount of fixed assets and accruals of depreciation charges of a legal entity, which ceases its activities for the successor as of transfer act approval;
- Presentation of the cost of inventories for the successor accounted in accounting of legal entity, which ceases its activities as of transfer act approval;
- Presentation in the tax accounting of successor the amount of funds, debt claims, the value of tangible and intangible assets acquired from the legal entity, that ceases its activities in connection with the reorganization;
- Presentation in the tax accounting of successor the negative value of the taxation object for income tax in reporting period, which was accounted in the taxpayer, which ceases its activities as of approval of transfer act.
In order to carry out transactions in accordance with the M & A (mergers and acquisitions) contracts without possible negative tax risks and consequences, it is important to understand clearly the corporate reorganization procedures.
+38 044 568 57 95