Types of IPO issue during IPO

Q: What types of tax problems do clients often encounter during the IPO process and how best to resolve them?
A: Well, most clients come to see us during IPO process.They admitted they have a tax issue in their operation.
But then they said we have made full provision for it.This is not the right answer nowadays although you have made full provisions.
The stock exchange will ask what's the cause for this.Why you end up make a full provision for it?And also what proactive action have you taken to resolve those issues with the tax authorities.
So that's why we need to understand all the issues.Why and what actions the company will be taking to resolve those issues.
Why and what actions the company will be taking to resolve those issues.Take Transfer Pricing for an example.
If you make an adjustment in one country,you might also need to make a corresponding adjustment in another country.
So how you are gonna account for it? Did you account for it? And how you are gonna explain that what action you will take to resolve those issues?
So really proactive actions need to be taken to resolve those issues. And the stock exchange will look at your answers to those questions.
And not just saying that we have made full provision and then the investors are being protected.And so the issues are no longer the issues for the stock exchange.

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