Exempt transactions, i.e. transactions that involve structural changes but usually do not involve cash, are a matter of routine whenever preparations are made for an IPO, raising capital or another business change.
Whether by way of merger, division of companies or by transfer of assets, restructuring transactions may be considered as tax-exempt transactions. In some of the transactions there is a requirement to report to the tax authorities, in others there is no such requirement.
In our second meeting in the series of meetings on “Tax Aspects in M&A”, we will deal with exempt restructuring transactions, analyze a number of common transactions and present the use of tax provisions that grant exemption / deferral of the tax inherent in the transaction.
We will also deal with the possible problems that may arise from incorrect planning of the transaction, and address the recommendations on how to avoid them.
