Tax valuation is a critical component of any effective tax planning strategy. As regulatory focus on tax strategies continues to increase, it is important for companies to understand the true cash impact of tax valuation early in the assessment of any acquisition or significant tax event.
The success of nearly every corporate transaction, restructuring or financial strategy often depends on accurately accounting for the tax consequences. Tax valuation helps companies understand the impact of the event and how taxing authorities will assess a transaction—before the plans are put into action. The right approach can also help avoid creating an uncertain tax position, which can be a risk if a valuation is too aggressive.