Services

International/Regional tax litigation and advisory services

Africa Tax Court cases – South Africa, Zimbabwe, Tanzania, Malawi, Zambia, Uganda and other African jurisdictions

US Tax Court petitions/cases, preparation and Tax Court appearances in all 50 States in the USA, the District of Columbia, and US territories

US International Tax Index: http://taxmap.ntis.gov/taxmap/internationalindex.htm

IRC research related to work done below

United States – New York, West Palm Beach

Nigeria – Lagos, Port-Harcourt, Abuja

Mauritius – Port Louis

South Africa – Johannesburg, Pretoria, Cape Town, Nelspruit

TRM™ Services

US Inbound - planning – compliance – tax risk management – controversy representation

Africa Inbound - planning – compliance – tax risk management – controversy representation

US Outbound - planning – compliance – tax risk management – controversy representation

Africa Outbound - planning – compliance – tax risk management – controversy representation

US tax representation & US tax court controversies - All 50 States & territories

Africa tax representation & tax/high court controversies - South Africa, Malawi, Nigeria, Kenya, Uganda, Mauritius, Zambia, Zimbabwe, Tanzania & 26 others

TRM™ Recent & Past Cases/Matters for Clients

South Africa - USD$370m – transfer pricing royalty charges – MNO based in Africa, Asia, Middle-East and Europe

South Africa – USD$80m – transfer pricing royalty charges/legal & economic ownership

Uganda - USD$54m – transfer pricing management fees & capital v revenue deductions

South Africa - USD$60m – customs/excise – liquor industry classification dispute

Malawi - USD$43m – transfer pricing

Rwanda  - USD$ approx. 12m – transfer pricing & VAT

Zambia - USD$55m – exit tax/lien

Zimbabwe - USD$20m – transfer pricing agricultural industry

Romania - tax risk management process for MNE based world-wide

Hungary - tax risk management process for MNE based world-wide

US - USD30m – advice on no tax residency in US to eliminate exit tax

US - advice on no tax residency in US for CEO of UAE royal family owned operation

US - advice & representation on late FBAR filings and IRS Offshore Voluntary Disclosure Program

US - advice to US tax practitioners as specialist on OIC, EITC, late FBAR/PFIC/Form 5471/Form 8840 filings

US - tax court petitions – failure to file/arrear taxes – Canadian doctor & citizen

US - advice on tax court petition – Schedule C landscaping business deductions

US/Africa - USD$100m – advice & structuring on foreign trust/corporation connection to US/Africa tax resident, receiving gift – ongoing

US/Africa - disinvestment from Africa operations – tax implications – controversy International Tax & State Responsibility relief

Nigeria - review MNE transfer pricing studies

S.Africa - USD10m – SARS back-dating revised assessment – on appeal to tax court

S.Africa - USD$30m – VAT apportionment of input tax credits

S.Africa - search & seizure warrant & tax audit/investigation

S.Africa - compile Africa-wide transfer pricing studies

Ireland/Africa - compile Africa-wide transfer pricing studies

Mauritius/Africa - compile Africa-wide transfer pricing studies

We pride ourselves in giving the highest degree of professional service to individuals, businesses, corporations, and MNEs (together with their usual advisors) on domestic and international planning, tax audit and tax litigation issues. Our successes are clear – and we DO NOT often go to court. We usually settle matters favourably for clients.

We have associations with the following firms world-wide:

-  RASMUS TAX, LLC and G & C Shelf 48 CC dba TRM Daniel Erasmus Tax Court Practitioners – USA & Africa - https://www.facebook.com/pages/TRM-Daniel-Erasmus-Tax-Court-Practitioners/271742386338604

- Carreras Lemoine Attorneys – Atlanta, USA; Paris, France - http://www.carreras-lemoine.com/staff/daniel-n-erasmus/

- Grant Kaplan Attorneys – Boca Raton, FL., USA - http://www.american-immigration-lawyer.com/

- Heather Pretorius Attorneys – Johannesburg, South Africa

- Terma Commercial Advisory Services – Sandton, South Africa

- Maurice Phillips Wisenberg Attorneys – Cape Town, South Africa - http://www.mpw.co.za/home/

- Mark Korten Consulting – Port Louis, Mauritius

- SAFFRON Professional Consultants – Lagos, Nigeria; Abuja, Nigeria - http://saffron-ng.com/

TRM™ Clients

TRM™ work with multi-national companies, country specific corporates and private companies, and high net worth individuals. Many of these are local and international household names.

Despite country specific legislation and language barriers, TRM™ have successfully implemented its Tax Risk Management methodology with clients on 3 major continents, in many countries. The principles TRM™ implements have a universal application, and our teams are well skilled in working in different jurisdictions, with the area specific technicians that are already assisting clients.

In an environment that requires both sensitivity and urgency, our clients demand work of the highest quality that is both consistent and accurate. TRM™ have a proven track record in meeting these demands and more.

TRM™ clients include:

  • One of the largest vehicle manufacturers in the world (German);
  • The largest clothing retailer in Southern Africa;
  • The largest IT and professional consulting firm in the world;
  • The 2nd largest beer brewer in the world;
  • The largest mobile phone company in Africa and the Middle East;
  • The largest packaging manufacturer in Africa;
  • The largest FerroChrome mining company in the world;
  • One of the largest mining groups in the world; and
  • Many other companies doing business in Africa, US and Europe (ranging from smaller companies to industry leaders).
As a result we are exposed directly and indirectly to tax issues arising in more than 20 countries world-wide.
Through our involvement in post-graduate education we have analysed more than 20 countries’ international tax & transfer pricing provisions and rules, for planning and tax representation purposes.
We have taught Revenue Authorities and corporations from more than 15 countries on international tax & transfer pricing, international tax and domestic tax issues.
The result – we have significant insight into the tax systems of many countries where we have consulted with significant corporations doing business there.

US Tax Court and tax representations

We also specialize in US Tax Court and tax representations leading up to Appeals and Tax Court in all 50 States in the US. We work closely with EAs and CPAs and their clients. Contact Prof D N Erasmus directly in the US at 561.568.7115 for a free 30 minute consultation. daniel@TaxRiskManagement.com. We have had numerus successes without having to go to court.

Transfer Pricing

Transfer pricing has become a focus area in Africa. Multinationals are aware that there is an increasing need to pay attention to developments in this area going forward. TRM is well positioned to assist in generating proper pricing studies for clients. While transfer pricing is well documented in most of the developed world, this is not the case in Africa. Moreover, African transfer revenue services are rapidly becoming more sophisticated in this area, hence the need for up-to-the-minute guidance. Significant developments on transfer pricing are taking place in South Africa, Zimbabwe, Malawi, Tanzania, Kenya, Uganda, Nigeria and Ghana. TRM have conducted extensive 2 day workshops in South Africa, Kenya, Nigeria, and most recently in Kuala Lumpur, Malaysia, to the the oil & gas industry in Asia.

Major Transactions include:

  • Largest seed producer in Southern Africa;
  • Expanding Advertising & Marketing company into West Africa;
  • Financial services companies via Mauritius into Africa;
  • Procurement companies out of Europe;
  • Distribution companies into Africa.

Dispute Resolutions

We’ve honed our skills on dispute resolutions internationally, involving various tax authorities. We have a record of settling for less than 3% of audited assessments, across Africa, Europe and the United States. We are currently involved in a transfer pricing disputes in South Africa, Malawi, Zimbabwe, Kenya and Uganda. We recently trained the transfer pricing department of FIRS (The Federal Revenue Authority) in Nigeria.

Major disputes in Income Tax, Customs & Excise, VAT and Transfer Pricing include (totaling just under USD3bn in value):

  • Largest professional firm in South Africa dispute with SARS;
  • Largest packaging firm in Malawi TP dispute with MRA;
  • Largest cell phone company TP dispute with URA;
  • Largest beer producer disputes with SARS on various fronts;
  • One of the largest casino and hotel operators in Africa – Various disputes with SARS on various fronts;
  • Largest ferro-chrome producer  in the world, dispute with SARS;
  • Largest cell phone network provider in Africa’s various disputes with SARS and other Revenue authorities in Africa.

Tax Risk Management

Our tax risk management methodology was born out of dispute resolution, and finding ways to minimise further exposure following such disputes. Tax Risk Management is a proactive, systematic way of managing corporate tax exposure, and has grown to become the cornerstone offering of our business.

Major Transactions concluded include:

  • Setting up a TRM strategy for subsidiaries of SABMiller plc;
  • TRM audits in South Africa, Romania, Hungary, Malawi, and Kenya;
  • TRM strategy for the Nampak Group.

Tax Uncertainty

We recommend proactively determining what your uncertain positions may be, rather than having revenue services do this and raising these areas in a dispute. When you know where your risks lie, you’re in control.

Tax Education

As our field is so exceptionally fast-paced and multi-faceted, we place a high premium on the ongoing education of our team, as well as our clients’ people. We enjoy a deep partnership with the International Institute for Tax and Finance (www.IITF.net) and the Thomas Jefferson School of Law, San Diego, CA, U.S in this regard.

Taxpayer’s Rights

We assist clients in understanding their rights as taxpayers, in any given jurisdiction. We are also focus in our advice on the emerging constitutional and administrative law issues, as they affect tax matters.

International Tax Advice & Planning

We assist clients in how to properly set up businesses in multiple jurisdictions, as well as giving advice on optimising existing structures. This is a skill set that is honed by the fact that TRM has been involved in so many international and domestic tax related disputes.

Into Africa Tax Matters

Africa remains largely uncharted territory for many multinationals seeking to do business in Africa. Providing guidance in this regard is our strong suite.

In this regard we have done services of the following:

  • Represented MNES in South Africa in a variety of tax-related disputes including: Xsrata, MTN, SAB Miller, Accenture, Mr Price, and other top 100 companies in South Africa.
  • Sit on tax risk management committees of listed corporates, offering ongoing input and advice under the attorney / client privilege.
  • Conducted transfer pricing studies I.R.O trading operations in South Africa, Botswana, Swaziland, Zimbabwe, Mozambique, Tanzania, Kenya, Uganda and Angola.
  • Transfer pricing disputes in South Africa, Malawi, Zimbabwe, Kenya and Uganda.
  • Map procedures between Uganda , Mauritius and South Africa.

General Tax Services

Individuals

  • Tax Return Reviews as part of the TRM process
  • Tax Clearance Certificate representation
  • Tax Objections against Penalty Assessments and incorrect Revenue Authority determinations
  • Tax Appeals when an Objection is not upheld and requires representation on technical tax matters
  • Tax Clearance Certificate applications to formally represent to a third party that all your tax affairs are up to date and in good standing
  • Tax Directive Applications to present to your representative employer(s) in order to benefit from a reduced effective tax rate
  • Private Binding Ruling applications to agree between Tax Authorities and yourself as to the manner in which the said transaction would be taxed
  • Provisional Tax registration for self employed individuals , the elderly whom earn substantial  interest income and for any other income earned which is not defined as remuneration received from employment.
  • Tax Planning and Structuring to determine if you may benefit from a lower aggregate effective rate of tax

Corporations

  • Tax Return reviews as part of a TRM process
  • Tax Objections against Penalty Assessments and incorrect Tax Authority determinations on all Corporate Tax matters
  • Tax Appeals when an Objection is not upheld and requires representation on technical tax matters
  • Tax Clearance Certificate applications to formally represent to a third party that all your tax affairs are up to date more specifically for BEE purposes or tender purposes.
  • Advanced Tax Rulings or Group Tax Ruling Applications for determination of the way in which Tax Authorities will tax a specific transaction, with the outcome of obtaining a valid agreement for 1 year binding on both parties, provided all conditions stipulated are followed.
  • Provisional Tax registration which is no longer compulsory for Private Corporations however is a efficient tax management tool and should be considered
  • Tax Planning and Structuring to determine if your Corporation may benefit from a lower aggregate effective rate of tax
  • Dividend Tax Computational and Advisory Services including odd payout reviews
  • Payroll Computational and Advisory Services including fringe benefit analysis and review
  • HIDDEN TRAPS IN US OUTBOUND FOREIGN CORPORATIONS

    U.S. persons who form foreign corporations become enmeshed in a labyrinth of tax laws and regulations designed to prevent multinational corporations from deferring income.  Here’s a highly simplified summary:

    “U.S. shareholders” are U.S. natural persons, partnerships, corporations, trusts, and estates that own, respectively, 10% or greater interests in a foreign corporation.  If such U.S. shareholders own more than 50% of the shares in an entity classified as a foreign corporation (e.g., a Panamanian S.A.), by vote or value, that entity is a controlled foreign corporation (CFC).  For instance, a foreign corporation with six U.S. shareholders owning 10% each and four foreign shareholders owning 10% each is a CFC.

    In general, U.S. shareholders in a CFC can’t defer U.S. tax on its passive income.  This may include rental income from real estate, although not what the IRS calls “actively managed real estate.”  In addition, in a CFC:

    * The 15% tax rate on capital gains and dividends isn’t available.  All gains are taxed at your marginal rate.
    * Investment losses can’t be allocated against gains until the CFC is liquidated.

    One way to avoid these unfavorable tax consequences is to elect to have the CFC taxed as a U.S. C-corporation.  However, like a domestic C-corp, this results in double taxation.  Another option is to file Form 8832 with the IRS and elect to have the CFC treated as a disregarded entity (if there is only one owner) or a partnership (if there are multiple owners).  That way the gains and losses of the CFC flow through to the U.S. owners as if the CFC didn’t exist.

    Unfortunately, many foreign corporations are ineligible for this election.  That includes most varieties of the Sociedad Anónima, including those in Panama and Uruguay.

    You must also file IRS Form 5471 each year for any CFC (and for certain transactions in non-CFCs) in which you hold a 10% or greater ownership stake.  In addition, you must file IRS Form 926 when you transfer property to a foreign corporation (CFC or otherwise) if you own 5% or more of its stock.  Separate filing requirements apply if your CFC is taxed as a foreign partnership or foreign disregarded entity.

Specialized Corporate Services from a tax perspective 

Corporate Law
Drafting of Memorandum of Incorporation
Companies Intellectual Property Registration Office Applications
Trademark Registrations
Promotion of Access to Information Documentation
Share Transaction Structuring in line with the Companies Act legislation
Corporate Mergers
De-registration of Corporations
Assets Disposal Advisory Services

Trust Law and Application
Drafting of Trust Instruments
Family Trusts
Business Trusts
Share Trusts
Trust Management
Tax Management

Treasury and Exchange Control Regulations
Intellectual Property Applications
Foreign Funding Transactions

Testamentary Succession
Drafting of Will and Codicils
Drafting of Trust Deeds
Estate Planning and Tax minimization

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