Key to gauging the validity of any tax-related vehicle is a transaction analysis of its intended business purpose. We have undertaken many such assessments, in which we examined whether the investment instrument in question (excluding any fees associated with its transaction) had
a reasonable upside relative to other potential investments.
For example, an option may be purchased for ostensibly legitimate business reasons. Our experts evaluate the option’s potential profitability and take into account any related hedging benefits to determine if there is an adequate business purpose associated with the option
as an investment.
Our rigorous transaction analysis draws on expertise in:
- Valuation, especially of complex derivative instruments
- The mechanisms underlying various tax shelters, including sale leasebacks and other instruments related to artificial investment loss
- Analysis of market dynamics
- Accounting and financial statements