Horizon Solutions

Tax due diligence remains a critical element in M&A (mergers and acquisitions) transactions, serving as the foundation for risk identification and informed decision-making. In recent years, several new developments and challenges have emerged in this field, requiring new approaches and expertise from both advisors and transaction participants.

1. The Rise of Artificial Intelligence (AI)

AI-based tools are playing an increasingly significant role in tax due diligence processes. These technologies can rapidly and automatically process large volumes of contracts, invoices, and other documents, identify risks, and uncover hidden connections. The use of AI accelerates tax due diligence, reduces the likelihood of errors, and enables more targeted, in-depth investigations. This trend is particularly pronounced in the technology, data-driven, and financial sectors.

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New Trends and Challenges in Tax Due Diligence Tax due diligence remains a critical element in M&A transactions, serving as the foundation for risk identification and informed decision-making.

Impact of U.S. Policy Shifts on Global Trade

The future importance of customs and indirect taxes is increasingly evident due to recent shifts in U.S. policy. The return of Donald Trump to the White House has marked a significant pivot in trade policy, emphasizing tariffs and trade protectionism. These changes are poised to reshape global trade dynamics, making customs and indirect taxes more critical for businesses and economies worldwide.

Role of Customs Duties in U.S. Domestic and Foreign Policy

Customs duties, a form of indirect tax levied on imported goods, are set to play a central role in U.S. domestic and foreign policy. The Trump administration's proposed tariffs include substantial increases on imports from various countries, with specific emphasis on China, Mexico, and Canada. For instance, tariffs on Chinese goods could rise to between 60% and 100%, while those on Mexican imports might see a 25% increase.

The future of customs and indirect taxes | Horizon Solutions The future importance of customs and indirect taxes is increasingly evident due to recent shifts in U.S. policy.