The performance of the business center was assessed under the classic “due diligence” approach. Thus, how to find effective property due diligence software?
Due Diligence When Choosing a Property: Basic Principles
The difference between “know” and “thoroughly check” is about the same as between viewing a person’s passport and an interview before hiring. In other words, it is not enough to check the registration data of the company. You need to understand whether she can do the work you need, whether she has all the necessary resources, experience, and desire for this.
If the effective due diligence software was carried out qualitatively, the taxpayer, as the analysis of arbitration cases shows, has a good chance to prove in court the reality of his transactions and the illegality of the claims of the tax authorities regarding fictitious transactions. The courts are less and less looking at the formal side of the case and more and more studying all the circumstances of transactions, their logic.
Basic due diligence principles when choosing a property:
- Efficiently manage your opportunity pipeline.
- Demonstrate your expertise to targets and partners.
- Be ready to seize the opportunity, with every asset in your portfolio complete, up-to-date, and in one place.
- Automatically create a data room to seamlessly transfer information and execute a deal at a moment’s notice.
Thus, the exercise of property due diligence software can be considered as one of the ways to check the counterparty, and due diligence itself as a set of measures to verify the counterparty, which the company develops independently. Reducing the size of the tax liability as a result of reducing the tax base, receiving a tax deduction, tax relief, applying a lower tax rate, as well as obtaining the right to a refund (offset) or refund of tax from the budget.
What Should You Know About Due Diligence Documents Real Estate?
At the same time, the effective property due diligence software on behalf of the counterparty by an unauthorized person cannot in itself be recognized as a basis for the tax reduction to be recognized as unlawful. The tax authorities need to establish both the fact of non-fulfillment of obligations to pay taxes and the fact that the taxpayer’s goal was precisely to unlawfully reduce the tax, as well as that he knew that the counterparty was a technical company.
In order to find out all the risks that may arise due to an effective property due diligence software, it is necessary to check general information about it and the subject of the transaction, the interaction of the counterparty with registrars, the financial condition of the counterparty, as well as the identities of the managers and participants of the company.
The effective property due diligence software will contain the following information:
- Full information about the object.
- Owner Information.
- Shares of ownership.
- The basis for the emergence of ownership.
- Information about encumbrances. For example, is the property under mortgage.
- At the same time, other alternative options for achieving the goal are analyzed.
While using the effective property due diligence software, it is worth checking not only the information from the registers but also the actual activities of the counterparty. For example, visit his office, inspect production facilities, and meet with the director and chief accountant. This will help reduce the risk of concluding an agreement with a company that exists only on paper and is not going to fulfill its obligations.