The Tax Implications CFOs Should Consider When Divesting a Business Unit - SPONSOR CONTENT FROM DELOITTE

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SPONSORED: The Tax Implications CFOs Should Consider When Divesting a Business Unit from Deloitte

When a business splits from its parent company, the move can be exhilarating, with fast timelines, massive challenges, and big opportunities. But the complexities and the risks of planning and executing such a “corporate carve-out”—a corporate reorganization method in which a parent company divests a business unit—can be tremendous, and nobody wants to destroy value in the process.

Splitting a company very often changes the realities of the business. An organization might find that the allocation of its taxable profits shifts as a result of changes to the centers of activity or where the decision makers for NewCo sit. Any taxable profits can also change according to where NewCo’s assets are, where its employees are working, or where capital is invested.

In part, Day Two planning is about aligning the business structure and profit profile to ensure NewCo is maximizing its potential tax benefit. Virtually every market offers a range of tax incentives or rebates for anything from R&D investments to environmental impact. But availing yourself of those tax opportunities depends on generating profits in the same market. Maximizing tax value requires carve-out teams to plan for the future.

 

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Deloitte Personally would want one to stay where one already is and grow strong there. With roots in another region as well and investment portfolio spread across friendly countries.

Deloitte People will not be forced to marry as this is what is happening. Kindly move to Canada. I will help you there. Just tell them you are not interested to marry that woman who is being forced on you for no reason.We have all the proofs. Just move please. We had enough.

Deloitte How about not focusing on one or two regions and spreading in three to five regions as per business nature and getting tax incentives. We have middle East for example Doha, Saudi Arabia, South East Asia here. US , Canada, France . How about spreading in those regions.

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