Special review focused on compliance and potential conflict of interest, tax and organizational optimalization of the group

A long-term client asked DABRICON to evaluate the potential risk of a conflict of interest in the planned business with medical supplies during the ongoing SARS-CoV-2 coronavirus epidemic, due to its concurrent involvement in a multinational company operating in the field of medical diagnostics. Our review covered business activities of this kind in the Czech Republic, Poland, Germany, the Netherlands, and the Balkans.

After performing detailed risk analyses of the received business documents and data, and including relevant legal and professional consultations, we recommended to the client several steps to avoid increasing the risk of non-compliance of the planned transactions with their current management positions. However, we have identified a number of difficulties in the correct application of some local accounting and tax laws in the corporate reporting of one of the companies. Therefore, in cooperation with tax advisors, we also recommended a new structure of the client’s business, incl. certain adjustments to the organization, accounting, and tax operations.