Tax

Tax Due Diligence

Know the tax exposure attached to a target company before you acquire or sell. A focused review that surfaces hidden liabilities and protects the deal.

Overview

Overview

Before acquiring or selling a company, you need to know the tax exposure attached to the target — not just what's on the financial statements, but the latent risk from regulatory interpretation and prior administrative practice. IBU's tax due diligence works through three years of returns, supporting documents, and underlying journals to map that exposure.

Scope of review

  • Reconciliation of three years of Corporate Income Tax returns and monthly VAT returns.
  • Input VAT validation: invoice reasonableness, supplier existence, and supporting-document completeness.
  • Identification of fiscal corrections that could be challenged on audit.
  • Administrative-penalty exposure: late filings, underpayments, unmet obligations.
  • Open legal status: ongoing audits, objections, court appeals, or judicial reviews.
  • Transfer-pricing review for material related-party transactions.

What we deliver

A tax due-diligence report written for decision-makers, not lawyers. It contains: one-page executive summary, list of findings with quantified risk, recommended price adjustments, indemnification clauses to land in the agreement, and post-close integration recommendations.

Timeline

A standard engagement closes in 3–4 working weeks depending on target complexity. For deals on tight clocks, we can deliver a red-flag report in 7 working days as an early screen.

Who It's For

This Service Is Designed For

This service supports various client types with different needs.

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Acquirers and Investors

Buyers who need to know the tax liabilities they would inherit before signing.

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Sellers Preparing to Exit

Owners who want to clean up tax exposure before going to market — a vendor due diligence.

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Private Equity and Funds

Funds screening targets and pricing tax risk into the transaction.

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Groups Consolidating Entities

Groups absorbing or merging entities that need a clear tax picture first.

Service Coverage

Service Coverage

The full handling cycle under one coordinated team.

Reconciling three years of corporate income-tax and monthly VAT returns against the underlying records.

CIT Returns VAT Returns Reconciliation

Testing invoice reasonableness, supplier existence, and supporting-document completeness for input VAT.

Invoice Testing Supplier Check Documentation

Identifying administrative-penalty exposure from late filings, underpayments, and unmet obligations.

Late Filing Underpayment Sanctions

Reviewing material related-party transactions and transfer-pricing exposure that could be challenged.

Affiliated Transactions Transfer Pricing

Mapping ongoing audits, objections, appeals, and judicial reviews attached to the target.

Ongoing Audit Objection Appeal

An early screening report highlighting the most material exposure for deals on a tight clock.

Early Screening Material Risk 7 Working Days
Benefits

What You Get

Strategic guidance at every stage — not just filing.

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No Hidden Surprises

Latent tax liabilities surfaced before they become your problem post-close.

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Stronger Negotiating Position

Quantified findings that justify a price adjustment or indemnity clause.

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Decision-Ready Reporting

A one-page executive summary plus findings — written for the deal team.

Fast Turnaround

A red-flag screen in seven working days; full review in three to four weeks.

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Protected Transaction

Clear recommendations on what to land in the sale-and-purchase agreement.

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Post-Close Guidance

Integration recommendations so exposure is fixed, not just identified.

Why IBU Consulting

Why IBU Consulting

What makes us a long-term partner of choice.

01

Official DGT Partner Since 2017

Official licence KEP-6376/IP.C/PJ/2020 — not just an ordinary tax-service office.

02

Partner-Led Engagement

Every engagement is led directly by a senior partner, not delegated to junior staff.

03

41+ Active Clients

Experience across MSMEs, PTs, and PMAs from a range of industry sectors.

04

Bali-Based, Serving Nationally

Local Bali regulatory knowledge with the capacity to serve clients across Indonesia.

05

Full Professional Certification

A team certified to USKP A/B/C, registered with IKPI and FKPI.

06

An Integrative Approach

Not tax alone — integrated with accounting, legal, and business strategy.

FAQ

Frequently Asked Questions

Answers to common questions about our services.

A standard engagement closes in three to four working weeks depending on the target's complexity. A red-flag screening report can be delivered in seven working days.
A one-page executive summary, findings with quantified risk, recommended price adjustments, indemnity clauses to land in the agreement, and post-close integration recommendations.
Yes. We help sellers identify and clean up tax exposure before going to market, so issues do not derail negotiations later.
Yes — material related-party transactions and transfer-pricing exposure are part of the standard scope for groups with affiliated dealings.
No. Due diligence is a private review using documents the parties provide. It does not involve or alert the tax authority.

Build your tax strategy with IBU.

Talk through your tax, finance, and legal needs with our team — we are ready to design the right solution in minutes.

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