2. Who are tax intermediaries?  Tax advisers  Accountants  Lawyers  Financial institutions Why are they considered as tax intermediaries?  Tax Compliance: tripartite relationship between Tax authorities, Taxpayers and tax professionals.  Taxpayers do not necessarily understand the whole tax rules  Tax authorities (particularly tax inspectors) do not have necessarily the right interpretation of some tax rules.

3.  The role of Tax professionals: helping taxpayers understand and comply with their tax obligations in an increasingly complex domestic and international tax regulation.  The scope of the tax professional’s role depends on whether the taxpayer’s finance team includes tax specialists or not.  Would compliance with tax laws improve if tax intermediaries did not exist?

4. Tax due diligence  Help investors understanding the business of the target  Determine the major tax risks to which the target is exposed  Provide the main features of the tax regime applicable to the target  Provide the main available tax incentives  Determine any pending tax litigations with tax authorities

5. The pricing level of the transaction will take into consideration:  Tax liabilities and risks  Tax incentives Even the vendor may appoint a professional to do the same work (Vendor due diligence). Where reports prepared by both professionals are not consistent, meetings will be held to reconcile their positions.

6. Tax compliance:  Bookkeeping  Preparation and submission of tax returns  Tax assistance: reconciliation between accounting figures and declared taxes  Certifying the tax return before submission Tax audit  Assessment of an entity’s tax exposure  Scope of work: more detailed than a tax due diligence (examination of invoices, contracts and other supporting documents…)

7. Tax advisory  Answering taxpayers’ queries regarding tough issues  When answering a taxpayer’s queries, Tax professionals refer to the regulation in force and guidelines issued by tax authorities (public rulings, private rulings). Adjustments introduced during previous tax controls are as well taken into consideration.

8. Complying with professional standards and legal obligations is a must for professionals.  Accounting standards (IFRS/ Local GAAP) These standards prescribe the level of details to be disclosed within financial statements.  Audit standards (IFAC’s standards) These standards prescribe the audit approach as well as the auditor’s diligences.

9. The role of the auditor is to conclude whether or not financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework.  Tax regulations Some countries oblige taxpayers to: - have tax returns certified by tax professionals (who engage their responsibility in case of fraud) - disclose the identity of their tax adviser