It is key to start mapping out a sudden event's potential tax consequences for the group as soon as possible as these could have an immediate positive or negative impact on the group's financial position. This ensures that relevant actions are considered at the appropriate time, such as assessing if, and when, tax deductions can be applied and tax payments can be deferred. In corporate or financial transactions or restructurings, tax-related value items to be considered often include preserving and optimising the use of tax attributes (for example, NOLs) and preventing unintended or undesired taxable profits.
Potential internal tax and tax accounting measures include assessing if, and when, tax deductions can be applied in the form of impairments in respect of affected assets or of liquidation losses on liquidated or expropriated subsidiaries; and for immediately affected business, looking at possibilities for deferral of tax payments:
If one or more response scenarios may entail corporate or financial transactions or restructurings, tax-related value items often include: