Amongst other goals, such as deduction of borrowing costs or tax-efficient unwinding, the additional step-up depreciation of the underlying assets is an important factor in any acquisition. The tax savings of such additional depreciation increase the cash flow of the target and, therefore, are essential for financing an acquisition.
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The OECD’s project was up for debate as Matt Williams spoke to ITR following BDO’s tax strategist survey, which uncovered increased complexity and costs among multinationals