Tax structuring

When companies acquire a business, dispose of a non-core business or go into a merger, they need to ensure that future net cash flows are optimised through tax structuring.

Tax structuring at an early stage can add significant value to any transaction. It is essential to minimise the after tax acquisition and financing cost including the actual transaction tax costs as well as the long-term sustainable tax rate following the transaction.

If this is your situation

• You require tax planning to ensure tax-efficient debt servicing and repayment.
• You need to dovetail your tax planning to accounting and regulatory requirements.
• You need to model tax-planning scenarios for a deal.
• You want to float on the stock market (IPO).
• You're involved in a public-private initiative.
• You're contemplating a re-financing/a securitisation.
• You want to reorganise your group structure.

How PwC can help you

• We provide rapid diagnosis of the transaction objective and principal issues that will ultimately determine the appropriate tax structure/route to be followed.
• We can present you with a number of alternative feasible routes for achieving your objective, whilst heeding accounting, tax, legal and shareholder considerations. The initial feasibility review is followed by detailed analysis to confirm the preferred solution, and we provide ongoing support throughout the implementation stage.
• Our international tax network allows us to determine the best location for an appropriate acquisition vehicle.
• We ensure maximum tax relief for acquisition finance using hybrid and debt push-down structures.
• Our tax experts plan for tax-efficient debt servicing and repayment
• We also ensure that potential withholding tax leakages are minimised.
• We assist you with cash repatriation and modelling.
• We can minimise the tax costs of the transaction by making use of a.o. VAT optimisation & VAT grouping.