Business "splitting" is a frequently used concept for building business structures. In recent years, business “splitting” has attracted increasing attention from tax and law enforcement authorities, who are looking for dishonesty, “artificiality” and related unacceptable tax minimisation in such “splitting”. There are many business “splitting” options. The simplest example is when the same individuals directly or indirectly set up several companies, perhaps registering themselves as sole traders.
As part of tax risk identification and analysis, BGP Litigation lawyers check on the structure of a company group for signs that allow the internal relations between several entities to be classed as “business splitting”. If signs that indicate potential business “splitting” are identified, the lawyers elaborate recommendations and draw up a roadmap for the subsequent tax risk mitigation.