Due Diligence - Tax.
Tax due diligence identifies the tax exposures that come with a business you plan to buy or invest in. We review income tax, TDS, GST and transfer pricing positions, usually for the last three years and any earlier years still open, and estimate each exposure so it can be reflected in the price, indemnities or escrow.
Typically 2–4 weeks. The number of entities and registrations, the years still open and the volume of pending litigation drive the time.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Acquirers and investors in a share purchase
- Buyers of a business by slump sale or asset purchase
- Funds reviewing tax risk before investing
- Sellers preparing for a buyer's diligence
What you receive at the end.
- 01Tax due diligence report
- 02Exposure schedule with likelihood ratings
- 03Summary of pending litigation
- 04Recommendations on indemnities, escrow and deal structure
Due Diligence - Tax, step by step.
Typically 2–4 weeks. The number of entities and registrations, the years still open and the volume of pending litigation drive the time.
- 1
Scope and period
We agree the taxes and years to review, usually three years plus any assessments still open.
- 2
Compliance review
We check returns, TDS and GST filings and reconciliations, and any tax audit and transfer pricing reports.
- 3
Litigation and notices
We review assessments, notices, appeals and demands, and assess the likely outcomes.
- 4
Exposure quantification
We estimate the tax, interest and penalty exposure for each issue and rate its likelihood.
- 5
Exposure report
We report exposures with recommended contractual protections and structuring observations.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- Income-tax returns, computations and tax audit reports
- Assessment orders, notices and appeal papers
- TDS returns and default statements
- GST returns, reconciliations and notices
- Transfer pricing documentation and accountant's reports
- Details of tax incentives and carried-forward losses
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about Due Diligence - Tax.
Ready to discuss Due Diligence - Tax?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.