Information referred to in a presentation to MNEs

Tax Intelligence book

I wrote a book on tax risk management that includes tax and strategy.

It is called TAX INTELLIGENCE and is available on Amazon.

https://www.amazon.com/Tax-Intelligence-Habitual-Mistakes-Companies/dp/145006874X

However, I am willing to send free pdf copies to those who request it – please send your requests to daniel@TaxRiskManagement.com. I will also send you a summary version. The book has been used in college tax classes on tax risk management and strategy.

Letter of findings judgment ITC 13726

SA Tax case 2018 Judgment section 42 TAA et al_Redacted

Issues discussed

• Malawi – information unlawfully obtained to effect a TP adjustment;
• Malawi – VAT and “imported services” – “money” or its value is excluded from the VAT Act. Also, the neutrality principle applies;
• Zimbabwe – s98 general anti-avoidance provision applied to “impute” royalties and management fees in a TP adjustment contrary to longstanding general anti-avoidance principles – King’s case, G-Bank case and Brummeria referred to, with Silke as authority that an “amount” must exist before the general provisions are applied;
• Malawi – Article 9 is used to charge tax based on a TP adjustment – Australia Chevron case and Prof B Arnold referred to; TP law applied retrospectively; TNMM study converted to Cost plus method;
• Zambia – TP audit evidence ignored as product supply recategorized as intra-group services;
• Tanzania – PE issue where offshore Holdco deemed to conduct a PE in its Tanzanian Subco, and no allocation of income/profits;
• Mauritius – s19 interest deduction disallowed where a company made loans to its Subcos to facilitate earning income from its services – Drakensberg Gardens case;
• RSA – TP adjustment distorting the PSM method.

Regards,

Dr. Daniel N. Erasmus Esq. BA BProc H Dip Tax Adv Dip TP PhD (law) S.Africa, Africa and US Tax Court Practitioner