Tax Due Diligence and Health Checks

Tax due diligence evaluates historical exposures in a transaction, while a tax health check prioritises recurring weaknesses in an existing business.

Taxpayers, finance teams and group tax managers reviewing a transaction, a reporting requirement or an authority communication can use this service to clarify a particular issue. A useful starting question is: “How does tax due diligence differ from a health check?” Begin with the facts behind that question rather than assuming that a standard package will resolve it.

The engagement can cover the following workstreams. The proposal specifies which apply to your matter and what evidence or specialist input is needed.

• Map open periods and unresolved disputes.
• Review recurring compliance and tax positions.
• Assess transaction impact and remediation.

Start with the records below where available. They help establish the facts before a more specific checklist is agreed.

• Returns.
• Assessment orders.
• Tax provisions.
• Transaction data rooms.

Provide the relevant entity, transaction or reporting period and any existing notice or deadline. Identify missing or inconsistent records so they can be addressed explicitly.

A compliance checklist alone does not quantify exposure; facts, period coverage and the intended transaction must be considered.

1. Define the question: map open periods and unresolved disputes, using the available returns and the facts you provide.
2. Examine the evidence: review recurring compliance and tax positions. Record unresolved information and the assumptions that affect the analysis.
3. Agree the action: assess transaction impact and remediation. Set the required deliverables, responsible owners and any follow-up or external dependency.

The proposal for Tax Due Diligence and Health Checks sets out the analysis, documentation or coordination deliverables and the work you retain. The availability of returns, assessment orders, tax provisions and transaction data rooms affects readiness and the amount of follow-up needed. Fees and the working schedule are agreed after that initial assessment. Any required independent report, legal representation or authority application is identified as a separate responsibility where relevant.

Use these official resources for the relevant framework. Application to a particular entity, period or jurisdiction requires a separate assessment.

• Income Tax Department: Applicable tax periods and framework

• Debtor Creditworthiness Due Diligence
• IP Due Diligence Services
• Supplier Due Diligence Services
• Legal Due Diligence

Share a short summary of your Tax Due Diligence and Health Checks requirement and the records already available. BIATConsultant can assess the proposed scope and explain the next steps.

• Request a Tax Due Diligence and Health Checks consultation
• About BIATConsultant