On the afternoon of July 21, 2025, Ivy Yang, Partner at Shanghai ForTran Law Firm, was invited as the keynote speaker at a seminar organized by the Corporate Compliance Committee of the Shanghai Bar Association. Her presentation, titled “Tax Compliance Thinking in Equity Transactions”, offered a systematic discussion of the tax risks and compliance considerations that arise throughout the lifecycle of equity deals.

Drawing on her extensive experience in equity structuring and tax dispute resolution, Ms. Yang examined key areas such as the alignment and divergence between commercial law and tax law assessments, the differences between accounting treatment and tax characterization, the timing of tax obligations, and the application of the “distribution-before-taxation” principle in partnership structures.

Through detailed case studies, she addressed a range of issues including income recognition in equity transfers, the tax treatment of earn-out mechanisms and valuation adjustment arrangements, share repurchase and refund disputes, and the deductibility of investment losses.

Ms. Yang emphasized that tax planning should be embedded at the structuring stage of equity transactions to mitigate downstream risks. The seminar attracted a strong turnout of lawyers and in-house counsel, and was met with enthusiastic engagement and discussion.

As a seasoned practitioner in financial transactions and tax law, Ms. Yang’s insights and practical approach were widely recognized by the participants.