Tax planning the transaction support

Many businesses in Israel are facing high tax rates when they seek to sign an agreement or carry out a certain transaction. High tax rates often prevent the transaction from being completed due to lack of profitability, while a professional and efficient tax planning, along with transaction support provided by a team of legal experts, may significantly reduce tax payments and make the transaction more attractive and profitable. A transaction should be planned in advanced to reduce tax payments required to complete the transaction, whether it is carried out in Israel or abroad. Efficient tax planning will help avoid double tax payments in cases of transactions carried out abroad. It should be noted that the tax component is critical in any transaction and therefore, it is important to seek professional legal counseling and support throughout the entire process, while conducting and examining the documents and agreements required to complete the transaction.

Tax consulting and planning prior to a transaction

Each company should receive professional tax advice prior to signing a deal in Israel or abroad in order to check its feasibility. It is recommended to apply to tax planning experts, who will be able to come up with the most correct method to carry out the transaction, while taking all tax issues into consideration. Poor planning may cause heavy losses and considerable distress to the company. Each transaction is composed of various components, such as a location, relationship of both sides with the law, company type, nature of the transaction and many other parameters that greatly affect transaction profitability and the taxes involved.

It is important to know that liquidation of partnership, retirement, business sale or closure are considered a transaction and therefore, one should prepare in advance in order to understand all the taxation related consequences. A client, who wants to retire or sell his share in the transaction, must plan tax payments for the receipts he may obtain. Proper planning may prevent tax payment completely or minimize the tax, while poor planning may lead to maximum tax payments.

Representation before tax authorities

Each transaction is complex and requires proper and detail-oriented planning regarding taxes, legal and commercial aspects, contract law, etc. In addition, it is important to receive services from an experienced legal firm that is well acquainted with the way tax authorities act and is able to use the services of foreign partners to provide legal consulting and support for transactions signed abroad, along with supervision and control implemented by experienced lawyers. Upon selecting a law office, make sure that the firm is indeed experienced in the field and familiar with all the relevant entities at the tax authorities, in order to receive solutions even in unique cases that are not explicitly stipulated by the law.

Ronen Oren & Co. Law Office specializes in tax planning and support of transactions of any volume, both in Israel and abroad. Firm’s staff is composed of the leading experts in the field and each client is able to enjoy professional legal counseling and support throughout the entire transaction process, including representation before the tax authorities, provision of expert opinion and handling the administrative aspects. In addition, the firm will provide support, litigation services and representation in court.