18 August 2025
Article
Tax by agreement? Demystifying the myth of contractually transferring tax liability
Picture this: You are contracted for a major infrastructure project involving a National Government
facility. The Government issues an undertaking, in writing, that it will bear the tax obligation for
certain elements of the project. You factor this into your budget proposal and proceed to import
materials and go ahead with the project with the legitimate expectation that the Government will
handle any payable taxes. Everything seems on track until completion, when a tax demand is issued to
you and, not to National Treasury, which had promised to settle the taxes.
Tax & Exchange
Control3 min read
