Tax professionals

Tax consultants often encounter valuation issues in their line of work

Examples of this are:

• restructurings, mergers and spin-ofss of existing organisations
• Business transfers within the family circle
• participations by employees
• gifts
• estates

These are situations in which assets change ownership between related parties. The tax authorities want to know whether the amounts used for such events are fair. In other words: Are they getting their piece of the cake? Would these valuations also apply if such transactions were to take place with a third, non-related party?

The assessment of the valuations by the tax authorities is usually carried out at a later date. The facts and circumstances may then be different from the assumptions on which the valuation was made. That is why it is important to make a sound and independent valuation prior to such situations. This provides clarity and can prevent lengthy discussions.