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Tax

Discover what our business lawyers can do for you

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Cliffe Dekker Hofmeyr Tax Microsite

Tax is a highly regulated area, carefully monitored and strictly enforced by the authorities. In this environment, planning, implementing and reporting on significant business transactions is best undertaken with a clear understanding of the tax consequences and under the protection of legal professional privilege.

Our Tax practice has in depth industry expertise and provides advice in an efficient and commercially orientated manner on local and international corporate tax planning and transactional work to a wide range of clients in the financial, mining, retail, construction, property and the services sectors.
We are actively involved in the dispute resolution process with a number of our clients disputes recently being heard in the Tax High Court and the Supreme Court of Appeal. We keep you informed of anticipated changes in law and tax practice to help you manage and take advantage of any developments in the tax arena.

Cliffe Dekker Hofmeyr's alliance with DLA Piper, one of the world's largest legal practices, means that we are able to move quickly and seamlessly on cross-border transactions. Through DLA Piper's global offices we coordinate information and resources to achieve your corporate objectives in the most tax efficient manner, wherever you do business.

Our recent experience

Our Tax Team advises a wide variety of clients from varying industries. To protect the confidentiality of our clients we have highlighted the types of transactions that we have been involved in. For instance, recently we -

  • negotiated settlement agreements with SARS in respect of significant securities transfer tax queries raised by SARS;
  • advised clients on transfer pricing issues and settled transfer pricing disputes with SARS and the Financial Surveillance Department ("FSD");
  • advised clients on the structuring and implementation of Black Economic Empowerment Transactions and associated restructurings;
  • made significant voluntary disclosure applications to SARS and the FSD as part of tax and exchange control voluntary disclosure programmes;
  • advised clients on the tax implications of implementing dividend income schemes and settlement of disputes in respect of these schemes;
  • challenged the "pay now, argue later" rule in the High Court;
  • negotiated and settled disputes with SARS and the FSD in respect of disputes exceeding billions of Rands;
  • advised clients on the conclusion of cross-border intellectual property transfer agreements;
  • advised clients of the tax implications of implementing various exchange traded note products;
  • advised whether particular transactions may now be considered simulated transactions pursuant to the Supreme Court of Appeal judgment of Commissioner: South African Revenue Service v NWK Limited;
  • advised on the establishment, implementation and amendment of share incentive schemes (e.g. share appreciate rights schemes and broad based empowerment schemes), including lobbying with National Treasury for amendments in respect of the adverse tax implications brought about by recent amendments to the Income Tax Act;
  • advised clients on "black box" transactions;
  • advised local and international private equity funds on the formation of their private equity fund and carried interest arrangements. In particular, private equity funds considering making investments in Sub-Saharan Africa; and
  • settled mining tax and value-added tax disputes with SARS in terms of the alternative dispute resolution procedures. Some of the disputes were resolved in the Tax High Court. 

Some of the areas we focus on include:

  • Tax advisory services such as asset disposal and acquisitions; group analysis and restructuring; financial services taxation; employee share incentive schemes; new business operations and capital allowance reviews.
     
  • International tax advisory services such as inbound and outbound investment; treatment of foreign exchange differences; thin-capitalisation; transfer pricing; permanent establishments; controlled foreign companies; foreign tax credits; double taxation agreements.
     
  • Independent tax reviews and tax due diligence services such as tax due diligence reviews; income tax risk identification and assessment; PAYE risk identification and assessment; VAT risk identification and assessment; international tax risk review and assessment and CGT risk identification and assessment.
     
  • Tax dispute resolution services such as responding to SARS queries; management of a SARS audit process; drafting of objections and appeals; representation in alternative dispute resolution reviews and tax litigation.
     
  • Tax training services such as tax law updates; Capital Gains Tax; VAT; International Tax; PAYE; Share incentive schemes; tax management and governance; corporate restructuring rules and taxation of insurance companies; the implications of the new Companies Act and the anticipated new dividend withholding tax.
     
  • Tax management advisory services such as tax governance reviews and assessments; chairing and serving on tax committees; tax risk and control identification workshops; tax strategy formulation and tax policy formulation.
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