WATRA provides a strategy-backed advisory services for companies seeking to mitigate tax liabilities and minimize risk through varied corporate structure strategy.
We have a vast expertise in the genre of tax affairs for individuals and corporate organisations and individuals. Our external audit and reviewing services ensure that the organisation is absolutely compliant with the necessary tax requirements. We make sure that there is no scope for non-compliance with the required tax regulations.
We take into account the amount of corporate taxes to be paid at the end of the year so that it becomes easier to get a consolidated perspective of the number of financial burdens for clearing. We perform both internal and external audits to ensure that the tax burden is not at all higher than it should have been. We include the implementation of accelerated legislative changes that will allow for greater flexibility in shifting, downsizing, consolidated operations and more effective closure.
Reasons for Corporate Restructuring
Corporate restructuring is implemented under the following scenarios:
Change in the Strategy.
- Lack of profits
Cash Flow Requirement
- Spin and Split Offs
Corporate Restructuring takes place in two forms:
The Financial Restructuring may take place due to a drastic fall in the sales because of the adverse economic conditions. Here, the firm may change the equity pattern, cross-holding pattern, debt-servicing schedule and the equity holdings. All this is done to sustain the profitability of the firm and sustain in the market. Generally, the financial or legal advisors are hired to assist the firms in the negotiations.
The Organizational Restructuring means changing the structure of an organization, such as reducing the hierarchical levels, downsizing the employees, redesigning the job positions and changing the reporting relationships. This is done to cut the cost and pay off the outstanding debt to continue with the business operations in some manner.
The need for a corporate restructuring arises because of the change in company’s ownership structure due to a merger or takeover, adverse economic conditions, adverse changes in business such as bankruptcy or buyouts, over employed personnel, lack of integration between the divisions, etc.