Tax Risk Management 2020-03-29T10:58:13+00:00

.

.

.

“We have a successful
track record with over
30 years experience
in international
cross-border tax matters”

ABOUT

Dr Daniel N Erasmus, as independent tax court counsel, works with a team of tax specialists assisting taxpayers (with their accountants, EAs and CPAs) and companies overcome various tax controversies (tax representation and tax court matters). With satellite offices in the United States and Africa, the team, known as TRM™ has established a reputation for excellence in the field of Tax Risk Management, and has a particular competence in tax representations and tax court work, including Africa-related multinational tax matters.

In Africa, Dr Erasmus has appeared as Counsel and argued various tax disputes in court on behalf of multi-nationals in South Africa, Zimbabwe, Tanzania and Mauritius. He has various tax dispute cases pending in those countries and in Malawi.

Our specialists based in: West Palm Beach, Boca Raton, Atlanta, New York (United States); Lagos, Port-Harcourt & Abuja (Nigeria); Piton (Mauritius); Cape Town, Johannesburg, and Port Elizabeth (South Africa); will be assembled to assist you with international and domestic tax issues, concerns about any tax controversy, and how to overcome your tax risk concerns. Most of our conflict cases have been resolved successfully out of court.

Tax uncertainty is an ongoing risk problem for all companies. The ability to mitigate this risk is easier than most companies think. TRM™ has spent years developing, implementing, and supporting comprehensive tax risk management systems in businesses. TRM™ applies a set of universal tax principles that allow corporations to identify and manage tax risks effectively, with documented results.

Often, TRM™ participates as an objective outside consultant to guide tax personnel, in their respective divisions, with existing tax advisor(s), to execute a company’s Tax Risk Management Strategic Plan in a streamlined and united way.

In recent years TRM™ has served taxpayers whose collective issued Revenue Service Assessments tallied an astounding just under R4bn. With the direct involvement of TRM™, this collective figure was settled for less than 3% (on average) across these taxpayers, with a number of them having settled for 0%, with most settled out of court successfully.

SERVICES

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

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

Africa Tax Court cases – Mauritius, South Africa, Zimbabwe, Tanzania, Malawi, Zambia, Uganda and other African jurisdictions representing corporations in tax disputes as lead or support Counsel with local law firms in court.

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

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

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.

Dispute Resolution

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 Mauritius, South Africa, Malawi, Zimbabwe, Kenya and Uganda. We have trained officials in the transfer pricing departments of various Revenue Authorities, including the the FIRS (The Federal Revenue Authority) in Nigeria.

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. 

Other Services

– Specialised Corporate Services from a tax perspective

– General Tax Services

  • Individuals
  • Corporations

METHODOLOGY = SUCCESSFUL CASES

PLEASE CLICK HERE to view our BESPOKE winning methodology that has produced results where just under USD$4bn tax exposures have resulted in less than 3% tax liabilities for clients. 

Below are some of our recent successes using this methodology.

  • Hungary – tax risk management process for MNE based world-wide
  • Ireland/Africa – compile Africa-wide transfer pricing studies
  • Malawi – USD$43m – transfer pricing
  • Malawi – USD$1m Mining industry WHT & VAT – settled, no tax liability after presentations to MRA
  • Mauritius/Africa – compile Africa-wide transfer pricing studies
  • Mauritius – USD$ 200m interest and capex deductions – awaiting judgment
  • Nigeria – review MNE transfer pricing studies
  • Romania – tax risk management process for MNE based world-wide
  • Rwanda  – USD$ approx. 12m – transfer pricing & VAT
  • South Africa – USD$400m – transfer pricing royalty charges – MNE operations in Africa, Asia, Middle-East and Europe
  • South Africa – USD$80m – transfer pricing royalty charges/legal & economic ownership
  • South Africa – USD$60m – customs/excise – liquor industry classification dispute
  • South Africa – USD10m – SARS back-dating revised assessment – on appeal to tax court
  • South Africa – USD$30m – VAT apportionment of input tax credits
  • South Africa – search & seizure warrant & tax audit/investigation
  • South Africa – compile Africa-wide transfer pricing studies
  • Tanzania USD$ 20m PE issues in technology industry – awaiting judgment
  • Uganda – USD$54m – transfer pricing management fees & capital v revenue deductions
  • US – USD$30m – 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
  • Zambia – USD$55m – exit tax/lien
  • Zambia  – USD$approx. 10m – transfer pricing dispute in the manufacturing sector
  • Zimbabwe – USD$20m – transfer pricing agricultural industry
  • Zimbabwe – USD$ extensive, being calculated for 21 subsidiaries – Management fees for large conglomerate – currently being argued
  • Zimbabwe – USD$5m Tobacco industry VAT – awaiting judgment
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.

OUR CLIENTS

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.

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.

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 former 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 and commodity groups in the world; and
  • Many other companies doing business in Africa, US and Europe (ranging from smaller companies to industry leaders).

CONTACT

Africa

Telephone: +27 11 698 0329 

Emergency: +27 83 458 8422

Email: daniel@taxriskmanagement.com

.

North America

Telephone: +1.866.759.9467

Emergency: +1.561.568.7115

Email: daniel@taxriskmanagement.com