oa De Rebus - Running through the maze of tax consequences for corporate restructuring : feature
Attorneys are often requested to assist with corporate restructures. A multitude of considerations then arise, specifically those linked to company law (including the necessary company secretarial work that would be required), contracts to be drafted and potentially considerations linked to the transfer of immovable property or share investments, to name but a few. One further important consideration is the tax consequences of the proposed transaction, which is, quite often, not the first consideration on the list of matters that needs to be dealt with. And rightly so, a transaction needs to make commercial sense and be legally feasible, before one should start thinking of its tax consequences. Unfortunately though, the mistake that is often made - and to clients' detriment - is that the tax consequences of a corporate restructure are regarded as being inevitable and that these cannot be mitigated. This, however, is not the case.
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