Question

With so many transactions, mergers, and acquisitions within companies, why is it important to hire and maintain adequate tax staff? What importance does tax planning provide during a sale or acquisition of another company?

Answer 1

1. With mergers and acquisitions, companies have to maintain adequate tax staff for following reasons:
   1. Analysis of tax benefit due to merger and acquisition i.e. losses of one company can it be adjusted with the acquiring company ;
   2. Analysis on the overall Effective tax rate ;
   3. Tax planning and structuring of the regions in the overall scheme of mergers and acquisitions;
   4. Documentation to be submitted to IRS due to merger and acquisitions;
   5. Archival of documents which needs to be submitted to IRS later on;
   6. Intercompany and transfer pricing regulations to be considered