Tax considerations in value creation, preservation and recovery

In Strategy and Transactions

We help you navigate the many interconnected tax issues that surround your business challenges. Whether your business is underperforming, stressed or distressed our global network of tax professionals can help you create, preserve or recover value. Our diverse global network combines local tax knowledge across a broad spectrum of industry sectors, to help you make informed decisions and navigate the tax implications of all your business-critical decisions.

What EY can do for you

Value creation

  • Understanding and quantifying the use of tax attributes and considering the availability of tax exemptions as part of cash flow management; with emphasis on crystallizing short-term opportunities and benefits to working capital.
  • Reviewing operating models to ensure tax consequences of business decisions are quantified and considered in the context of your strategic objectives, as well as ensuring any future regulatory or legislative change sensitivities are anticipated and reflected in alternative operating models.
  • Ensuring any changes to your business or operating model are supported by robust transfer pricing policies to create an efficient supply chain process and appropriate funding structure.

Value preservation

  • Assessing the tax impact of potential business decisions including divestments, group reorganizations, the restructuring of third party and inter-company debt or refinancing of existing liabilities.
  • Managing tax deductibility of financing arrangements.
  • Assessing and modelling tax leakage on the servicing of debt.

Value recovery

  • Assessing commercially agreed contingency options.
  • Reviewing the tax impact of any recovery of value envisaged and understanding leakage.
  • Helping you understand the tax impact associated with realigning legal and operating structures.

Read about transaction tax

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