Tax aspects relating to such matters as mergers and takeovers, private equity, employee participation plans and structured finance, form an important part of corporate tax law.
In the event of a merger, takeover or private equity transaction, CMS will determine and develop the structure that is appropriate for your needs. This will help you to avoid unnecessary tax payments and achieve an extra tax advantage if possible. In addition, we perform due diligence studies into targets for tax purposes, identifying and listing the tax risks for you. You can call on us too for advice on the legal aspects of setting up investment funds. We also write or assess the tax elements of prospectuses.
With an employee participation plan you can have your employees share the financial results of your business, but there are several tax aspects involved in this. We can advise you on the structure and form of the employee participation plan, such as participation by means of shares, depositary receipts, options or SARs. Furthermore, we conduct the negotiations with the tax authorities on the tax consequences of implementing the employee participation plan.
We can also provide you with sound advice in respect of structured finance, our aim being to achieve the highest possible tax efficiency for the parties involved. Examples of these types of transactions are tax leases, purchase and sale of profit-earning capacity for tax purposes, hybrid financing and tax-transparent entities.