Landmark Transfer Pricing Case from South Africa

Dr Daniel N. Erasmus 25 March 2024

Marking a significant milestone in South Africa’s legal landscape, TRM Tax Attorneys achieved a groundbreaking victory in one of the nation’s inaugural transfer pricing trials.

Under the astute guidance of Dr. Daniel N. Erasmus, TRM Tax Attorneys represented a prominent conglomerate embroiled in a dispute concerning the arm’s length nature of royalty rates charged by the holding company to its subsidiary for the utilization of intellectual property.

The Tax Court evaluated the testimony of four expert witnesses who delved into the intricacies of the Profit Split Method (PSM) and Comparable Uncontrolled Price Method (CUP). Ultimately, the court ruled in favour of the taxpayer. Notably, the court determined that the CUP cited by the taxpayer served as a valid internal comparable.

This victory is a testament to the diligent support and expertise of esteemed counsels Adv Wim Trengove SC and Adv Rudolf Mastenbroek.

For further insights:

Dr. Daniel N. Erasmus’s Upcoming Contributions

In his upcoming book, Conducting a TP Trial, Dr. Daniel N. Erasmus expands on the team’s extensive experience in dealing with complex Transfer Pricing Trials in a variety of jurisdictions.

His work promises to be an essential resource for legal practitioners and multinational corporations, offering deep insights into the strategic considerations and legal frameworks surrounding transfer pricing trials.

Categories: International, International Tax, South Africa, Tax Dispute Resolution, Transfer Pricing
Dr Daniel N. Erasmus

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