CONTENT



 1.  Why Tax risk & Scenario Analysis?
 2.  Examples of deliverables
 3.  The offering
 4.  The Price
1.

WHY
VALUATION
OF
TAX
RISK
AND
REWARD?


 •    Companies face many tax uncertainties and risks when making business dec...
1.

WHY
VALUATION
OF
TAX
RISK
AND
REWARD?


 •    This document provides three examples of Taxand project deliverables, i....
EXAMPLE
2

LITIGATION
SUPPORT
(1)

EXAMPLE
2

LITIGATION
SUPPORT
(2)

EXAMPLE
2

STRUCTURING
SUPPORT

EXAMPLE
2

STRUCTURING
SUPPORT
(2)

EXAMPLE
2

STRUCTURING
SUPPORT
(3)

EXAMPLE
2

STRUCTURING
SUPPORT
(4)

EXAMPLE
3

TRANSACTION
SUPPORT
(1)

EXAMPLE
3

TRANSACTION
SUPPORT
(2)

EXAMPLE
3

TRANSACTION
SUPPORT
(3)

EXAMPLE
3

TRANSACTION
SUPPORT
(5)

THE
OFFERING



•    Taxand will work with your tax advisor (internal counsel, Taxand advisor or third party) to
     esta...
THE
PRICING



•    Fees
are
based
on
>me
value
and
dependent
on
the
level
of
accuracy
of
the
valua>on.

•    Taxand
will
...
KEY CONTACTS
    Key Contacts                                         16




                   Rutger Hafkenscheid
      ...
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Service Offering

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Service Offering

  1. 1. CONTENT
 1.  Why Tax risk & Scenario Analysis? 2.  Examples of deliverables 3.  The offering 4.  The Price
  2. 2. 1.

WHY
VALUATION
OF
TAX
RISK
AND
REWARD?
 •  Companies face many tax uncertainties and risks when making business decisions, e.g. –  in tax litigation: should we litigate or settle in disputes with the tax authorities? –  in mergers and acquisitions: is there a reasonable balance between tax risks and the price or guarantees? –  in investment decisions: do we adeaquately price the tax risks into the business case? –  in tax planning and structuring: do the tax benefits of planning and structuring outweigh the tax risks? –  in discussions with the Non Executive Board: do we give relevant and efficient insight in the company’s tax risks, without digging into unnecessary and time consuming detail? –  in strategy development: do we adequately calculate with the tax risks and rewards of our strategy? –  in the annual accounts: how do we adequately value the tax risks in our accounts, without releasing confidential information? •  For all these questions, VMW Taxand offers Tax Risk & Scenario Analysis, a service that provides companies with expected value calculations, tax risk valuation,
  3. 3. 1.

WHY
VALUATION
OF
TAX
RISK
AND
REWARD?
 •  This document provides three examples of Taxand project deliverables, i.e. –  Example 1: Litigation support. The valuation of the uncertain outcomes of a court trial, enabling the comparison between settlement and litigation –  Example 2: Structuring support. The valuation of uncertain taxes in a structured finance transaction. –  Example 3: Transaction support. The valuation of uncertain taxes in two alternative ways to structure the acquisition of a target company.
  4. 4. EXAMPLE
2
 LITIGATION
SUPPORT
(1)

  5. 5. EXAMPLE
2
 LITIGATION
SUPPORT
(2)

  6. 6. EXAMPLE
2
 STRUCTURING
SUPPORT

  7. 7. EXAMPLE
2
 STRUCTURING
SUPPORT
(2)

  8. 8. EXAMPLE
2
 STRUCTURING
SUPPORT
(3)

  9. 9. EXAMPLE
2
 STRUCTURING
SUPPORT
(4)

  10. 10. EXAMPLE
3
 TRANSACTION
SUPPORT
(1)

  11. 11. EXAMPLE
3
 TRANSACTION
SUPPORT
(2)

  12. 12. EXAMPLE
3
 TRANSACTION
SUPPORT
(3)

  13. 13. EXAMPLE
3
 TRANSACTION
SUPPORT
(5)

  14. 14. THE
OFFERING
 •  Taxand will work with your tax advisor (internal counsel, Taxand advisor or third party) to establish the factual and technical background of the position to be valued. Information is gathered through file review and/or a joint session or conference call. •  The information will form the basis for a scenario analysis in which Taxand, together with the tax advisor, will establish the key variables driving the risks and rewards of the position to be valued. •  Taxand will then analyse and model the scenarios and their outcomes with decision table modeling techniques and financial modeling techniques. •  In co-operation with your tax advisor, Taxand will estimate the likelihood of the various scenarios and will return the overall confidence level of risks and rewards. •  Taxand will quantify the risks and rewards, and - where relevant – will visualise the results in easy-to-read and easy-to-compare graphs, e.g.i a risk distribution histogram, waterfall graph, or tornado sensitivity chart.
  15. 15. THE
PRICING
 •  Fees
are
based
on
>me
value
and
dependent
on
the
level
of
accuracy
of
the
valua>on.
 •  Taxand
will
maximise
the
efficiency
of
the
valua>on
by
regulary
performing
sensi>vity
analyses
that
 avoid
unnecessary
modeling.
 •  Taxand
will
always
give
a
fee
quote.

 •  Taxand
is
oPen
able
to
provide
a
relevant
and
insighQul
valua>on
for
€12,500
($20,000)
per
 posi>on,
if
the
posi>on
has
already
been
tax
technically
analysed,
has
a
single
year
effect
and
does
 involve
no
more
than
16
scenarios
(as
many
posi>ons
do).
A
simple
mul>
year
scenario
analysis
 normally
cost
no
more
than
€17,500.

 •  To
get
a
feel
for
the
pricing:
the
fee
for
the
valua>on
in
Example
1
was
€17,500,
and
for
Example
2

 €12,500
for
the
overall
analysis
and
€4,500
for
each
extra
posi>on,
so
totalling
1
x
€12,500
+
2
x
€
 4,500
=
€21,500.
 •  However,
complex
posi>ons
with
mul>
year
correlated
variables
may
require
comlex
decision
table
 and
financial
and
Monte
Carlo
simula>on
modeling,
which
may
require
more
>me
and
effort
and
 thus
substan>ally
higher
fees.
Taxand
will
advise
you
in
advance
about
the
need
and
expected
 return
of
such
modeling.

  16. 16. KEY CONTACTS Key Contacts 16 Rutger Hafkenscheid E: rutger.hafkenscheid@vmwtaxand.nl D: +3120 301 66 33 M: +31 6 53 775 042
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