Breakfast Talks: Tax Consequences of Mergers & Acquisitions and Option Rights

Erdem & Erdem held Breakfast Talks themed “Tax Consequences of Mergers & Acquisitions and Option Rights” in St. Regis Hotel on the 17th of April 2019. Erdem & Erdem’s founder and senior partner Prof. Dr. H. Ercüment Erdem and tax counsel Ms. Canan Doksat delivered presentations in the event, to which the executives from law, finance and tax departments of companies operating in various sectors attended.

Firstly, Prof. Dr. H. Ercüment Erdem presented his evaluations on option rights and problems arising from “call option” and “put option” applications. Then Ms. Canan Doksat presented her explanations on the essential tax consequences of share transfer under the title of mergers and acquisitions.

It was emphasized that each merger and acquisition process comes with different tax results depending on the type of the company whose shares will be the subject of transfer, the legal status and residency of the shareholders, the type of acquisition and holding period of the shares. It was stated that a share purchase agreement signed without making a tax planning, meaning without pursuing the current approach of the tax administration and the recent developments in the fiscal legislation, will not provide the expected benefit.