Information referred to in a presentation to MNEs

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 managementTax risk management is a structured process used by organizations, particularly multinational enterprises (MNEs), to identify, assess, and mitigate potential risks that arise in relation to tax compliance, reporting, and planning. It plays a crucial role in ensuring that a company’s tax obligations are managed in a way that minimizes risk exposure while maximizing efficiency and strategic value. and strategy.

Letter of findings judgment ITC 13726

SA Tax case 2018 Judgment section 42 TAA et al_Redacted

 Issues discussed

1. Malawi – information unlawfully obtained to effect a TP adjustment;
2. Malawi – VAT  and “imported services” – “money” or its value is excluded from the VAT Act. Also, the neutrality principle applies;
3. Zimbabwe – s98 general anti-avoidance provision applied to “impute” royalties and management feesManagement fees refer to charges imposed by a parent company or central management entity within a multinational group for providing centralised services to its subsidiaries or associated enterprises. These services typically include administrative, strategic, technical, or operational support. Management fees are often structured to cover costs incurred by the parent company and are allocated to benefiting entities under transfer pricing... 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;
4. 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;
5. Zambia –  TP audit evidence ignored as product supply recategorized as intra-group servicesFOR MORE INSIGHT ON INTRA-GROUP SERVICES, PLEASE READ THIS ARTICLE: Intra-Group Services: Guidelines, Examples, and Risk Management Strategies Intra-Group Services refer to activities performed by one entity within a multinational enterprise (MNE) group that benefit one or more associated enterprises. These services may include administrative, technical, financial, or commercial assistance provided by a central company to its affiliates. A primary...;
6. Tanzania – PE issue where offshore Holdco deemed to conduct a PE  in its Tanzanian Subco, and no allocation of income/profits;
7. Mauritius – s19 interest deduction disallowed where a company made loans to its Subcos  to facilitate earning income from its  services – Drakensberg Gardens case;
8. RSA – TP adjustment distorting the PSMThe Profit-Split Method (PSM) is a critical tool in transfer pricing, used to allocate profits or losses among associated enterprises participating in controlled transactions. This method is particularly relevant when transactions involve integrated operations or unique and valuable intangibles that make comparable uncontrolled prices challenging to establish. The PSM ensures compliance with the arm's length principle, requiring that profits are... 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