What is tax due diligence?
Tax due diligence is the buyer’s review of a target company’s tax position before an investment or acquisition: the returns filed and the positions taken in them, open periods, audits and disputes, VAT and withholding compliance, payroll and social security, related-party pricing and the incentives the company relies on. Its output is not a clean bill of health but a priced list of exposures, which the deal documents then allocate through the purchase price, an escrow or specific indemnities.
Full guide: Tax due diligence in Türkiye: the five-year look-back and the incentive exception (Tax Procedure Law Art. 114), limited-company partner and director liability under Law No. 6183, thin capitalisation and transfer pricing, and how findings become deal terms.
Related: due diligence, holdback, tax indemnification.
Our analysis on this topic
Is this on your desk?See how Vircon Legal works on M&A, or book a call directly.
Book a call →Related practice areaMergers & Acquisitions →