Tax due diligence in Poland

Due diligence is addressed mainly to investors who plan to acquire shares or stocks of an existing company or to merge with another entity (M&A). Such an audit is conducted upon the consent and cooperation of the audited entity.

The process of acquisition and takeover of a business is often burdened with high risk resulting from the investor's lack of knowledge of specific details regarding the operations of a given entity, including but not limited to its tax settlements. Tax due diligence, the aim of which is to analyse and verify the correctness of a company's tax settlements, is a perfect solution of this problem. It provides investors with an in-depth analysis of the company's current tax situation and allows for identification and assessment of tax risks significant from the perspective of the company, which may have an impact on the decision regarding the planned investment.

The outcome of the tax due diligence is a report listing the identified irregularities and risks in the area of tax settlements, together with an assessment of the financial burden if they materialise. This report also includes recommendations for minimising the identified risks.

• analysis of tax settlements of the audited company
• identification of irregularities and tax risks
• estimation of prospective financial costs to be incurred if the risks materialise
• recommendations for minimizing the identified risks

Tax due diligence allows investors to address identified tax risks during the price negotiation process and to include appropriate guarantee and indemnity clauses in the share purchase agreement.

Effective due diligence requires examining a business from multiple perspectives. That is why we go beyond tax due diligence alone. Depending on the nature of the transaction and the client’s specific needs, we provide a comprehensive assessment covering financial, legal, operational, and commercial aspects of the business. This holistic approach helps identify both potential risks and opportunities that may significantly impact the value of the company and the success of a planned investment or transaction. By bringing together specialists from various disciplines, we deliver a complete picture of the business and support our clients in making informed decisions with confidence.