Tax Due Diligence: Understanding Tax Risks

Explore the key tax risks, exposures and compliance issues to consider when undertaking due diligence. In this session, we cover: 

• Why due diligence, and where tax fits in the full process

  • When due diligence is needed

  • Tax as one workstream among many

• Buying a business versus buying the entity: where tax risk lives

  • Who bears the historical tax risk

  • Review periods, penalties and GIC

• Key historical tax risks: income tax, GST, FBT and more

  • Division 7A and trust distributions

  • Losses, franking credits and concessions

• Strategies to determine where the risk sits

  • ATO records, reconciliations and benchmarks

  • Red flags and quantifying exposure

• Turning findings into price and protection, then takeaways

  • Warranties, indemnities and tax deeds

  • What buyers and sellers should push for