Corporate Tax

We are in control of your indirect taxes

In a global environment it is becoming more critical for organisations to manage and mitigate their indirect taxes (whether VAT, customs and excise or environmental taxes). Antswisa provides a range of innovative solutions and has the team, the tools and the multi-disciplinary approach to ensure that you are compliant in these changing times and are able to face the indirect tax challenges of tomorrow.

Value-added tax

Services:

• Audit of VAT processes and reporting
• Tax controversy and dispute resolution
• Consulting
• Technology tools to help your indirect tax compliance
• Training of your personnel to reduce business risk exposure

Customs and International Trade

Well arranged customs activities lead to lower costs and improved logistics.
For businesses that trade cross-borders, there are a series of trade instruments governed by the World Trade Organization (WTO), as well as trade agreements that can be used to grow sustainable enterprises.

Customs and excise

• Industry specific services
• Customs and Excise specific activities and incentives

Compliance, opinions, rulings and consulting services

• Customs valuation
• Tariff classification
• Industry specific consulting, reviews and tax planning
• Due diligence reviews and internal audits
• Drafting and submitting objections and appeals
• Dealing with SARS on industry specific issues
• Appeals, Alternative Dispute Resolution (ADR) and Litigation
• Training – Customs, Excise and trade
• Registrations

International Trade

• Free Trade Agreements – preferential duty rates and Rules of Origin

• Tariffs, anti-dumping duties and countervailing duties

Environmental taxes and regulations are constantly increasing in number and scope as more countries introduce them. Any developments in this area need to be closely monitored to understand the impact on business.

Services

Environmental tax impact

Our network of sustainability and climate change tax specialists can help you:
• Assess your current exposure to environmental taxes and regulations.
• Understand your compliance obligations
• Understand your tax department’s role in supporting your sustainability strategy
• Enhance your corporate reputation directly through sustainability-focused initiatives

Carbon tax

• Carbon tax assessment
o Determining which activities that emit greenhouse gases will be carbon taxed
o Calculating a taxpayer’s estimated carbon tax liability
• Compliance
o Greenhouse gas reporting registration
o Carbon tax registration
o Carbon tax annual compliance

International Tax compliance became a priority in doing business in African Markets with the reforms taking place in large corporates and multinationals.

With today’s global economy, businesses are exposed to fast changing legislation, regulations and tax environments with operations, supply chains and customers across the globe. It’s vital to manage and respond to these developments in an agile way.

Our international tax team is able to provide fit for purpose solutions and support in managing your global tax structuring and compliance obligations effectively and responsibly, regardless of the size of your operations. We work closely with our colleagues in other tax competencies such as transfer pricing, VAT, employees tax, etc. to ensure a seamless tax service.

How we can add value

Expanding outside of South Africa
When businesses expand or invest outside of South Africa, they are exposed to unfamiliar in-country laws and practices.

Supported by our African network, we act as a single point of contact to assist you throughout the investment cycle – from setting up your new business or structuring an acquisition, determining the appropriate mix of debt and equity financing, managing ongoing tax accounting and compliance obligations, to structuring an eventual exit.

Antswisa Tax Advisory provides a strategic and holistic integrated approach to global tax planning, where all of the following fundamental components can be addressed, subject to the commercial drivers of the business:
• Profit Alignment;
• Attribute Management; and
• Treasury Management.

Cross-border value-chain management

Cross-border value chain management can be complex, with numerous aspects to consider.

Our international tax professionals have the resources, experience and local competencies to assist companies in addressing these needs. We ensure that we blend the appropriate expertise, including corporate tax, exchange controls and indirect tax, to assist in simplifying the issues and supporting and optimising your value-chain management.

The continuously changing South African tax law and strict exchange control regulations overlaid with evolving international best practices in the interpretation of tax treaties, have an impact on foreign-based multi-national corporations looking to penetrate the South African market.

Antswisa Transaction Advisory’s inbound tax advisory services are well placed to assist with guiding multi-national corporations through these complex issues, including but not limited to:

• Advising whether a foreign-based business is at risk of triggering a South African tax presence;
• Ensuring that the corporate, transactional and financing aspects of an investment are aligned with the tax outcomes;
• Ensuring that the relevant statutory requirements and company law compliance obligations are met; and
• Considering the impact of the repatriation or redeployment of funds from or to South Africa.

South African exchange controls

South Africa has strict exchange control regulations, which govern the flow of funds into and out of the country. Understanding and complying with these regulations is important for any cross-border transaction (excluding transactions within the Common Monetary Area of South Africa, Namibia, Lesotho and Eswatini).

Earlier in 2020, as part of the 2020 Budget Review, it was indicated that the existing exchange control rules would be reviewed and that the exchange control regime would be replaced by a new capital flow management framework in terms of which a number of changes to the existing regulations would be made. It is important to understand how this may impact any proposed future (structuring or other) cross-border transactions.

Contact our International Tax Services Department for more information and assistance with the above.

Mergers and acquisitions

Antswisa’s International Tax team advises listed and private groups on cross-border buying, selling, merging and restructuring businesses, companies and groups. The tax team together with Antswisa’s Advisory M&A team (who offers JSE sponsor and regularly provide advice to the listed exchange regulatory environment) provide an integrated service-offering from initial diligence and structuring assistance to implementation and post-deal assistance.

Antswisa Transaction Advisory is a boutique brand associated with quality and trust and has a significant presence in every major market, both established and emerging. This makes the Antswisa Deals tax network a niche African markets powerhouse with an ability to serve continental, national and local clients.

Whether your organisation is involved in a public or private initiative, a management buy-out/in, purchasing or disposing of an asset, implementation of a turnaround strategy or in the process of establishing a private-equity fund, our Deals Tax team will help you solve complex business problems, build value, share knowledge and bring competitive advantage to your activities.

We walk you through the transaction, from strategy and due-diligence through to post-deal integration. Our structure links local firms with a worldwide network that can leverage the advantages of expertise on an international scale. We pride ourselves on partnering with international and national law firms to meet the needs of our client’s tax objectives.

Tax Due Diligence

Antswisa’s tax due diligence team consists of accounting and legal specialists who provide buy-side and sell-side transaction support.

On the buy-side we provide a credible and independent due diligence review – identifying significant tax issues that could impact the proposed transaction.

We also identify and quantify the potential major tax liabilities/exposures, which may affect the deal price and future earnings of the target. A full-scope tax due diligence review or a specific procedure review will provide you with a better understanding of the tax consequences on the potential acquisition of the target company, which is important to your assessment of the investment opportunities.

On the sell-side, we address the concerns and issues that may be relevant to even the most demanding purchaser. For vendors undertaking a disposal or selling off a part of their own business, our vendor assistance provides bespoke solutions to assist you in successfully completing your divestments.

Tax Structuring

Antswisa ’s one-stop cross-border and domestic M&A deals tax solutions include:

• Divestment and carve-out – We assist you in the tax aspects of the sales process and provide optionality in respect of exit mechanisms available to the shareholders to mitigate tax leakage on realisation of proceeds.
• Structuring – We work closely with you and your other transaction advisors to understand the commercials that underpin and drive the restructuring transaction and provide you with a step-by-step transaction memorandum setting out the steps and associated tax consequences of each step.
• Tax compliance – We review all the agreements and resolutions to ensure that the implementation does not give rise to any unintended tax consequences and assist with the preparation, filing and review of the applicable tax returns.
• Tax optimisation – We can perform assessments on the effectiveness of existing tax functions in order to provide tax planning opportunities.

Private Equity Tax Services

Our team of tax specialists can assist you during the full life cycle of your private equity fund, from the design of your fund structure and accompanying carry scheme through to the realisation of the fund, ensuring that the return delivered to your various stakeholders is not unnecessarily eroded by any unintended tax drag.

We work closely with you to provide you with the optimal tax structure that is cognisant of your commercial parameters and specifically designed to align with your overall fund strategy.

Business Rescue Tax Services

We appreciate the need for businesses to optimise their working capital and maximise their free cash flow, however, the implementation of such strategies requires careful consideration from a tax perspective to mitigate against any adverse tax consequences which may negate the positive effects of your strategy.

Our team of tax specialists is well placed to assist you with the tax aspects of any formal or informal turnaround strategy you may wish to embark on. Our focus is to increase your tax efficiencies and ensure that the implementation of your turnaround strategy does not give rise to any unintended tax leakages which may reduce free cash flow.

Creating value through tax in Deals

We apply a ‘results-based’ approach, aiming to align with clients on how best to deliver on strategic imperatives in the context of sustainable value creation.

Antswisa offers a one-source deal service solution and can assist with understanding your strategic objectives, assist in the M&A process review, tax structuring, reorganisation and cost reduction, tax funding model, B-BBEE transactions, group reorganisations and tax due diligence executions.

We provide a smooth process which minimises disruption, supports the deal team and protects management time, along with services designed around what is important to your assessment of value, in order to help you make the right decision.

Our market leading expertise will enhance value by bringing fresh perspectives.

Private Company Services tax service offering

Antswisa is dedicated to your long-term success: Our dedicated private company services taxation teams are equipped to act as your trusted tax counsel. This team is part of a strong South African tax practice, recognised as one of the country’s leading tax advisors. We draw on the skills and experience of a network of more than 18 000 tax and legal professionals globally, giving us unrivalled local resources and industry knowledge.

How we can add value

Wealth Creation and Preservation

Owning and managing one’s own business comes with inherent risks, which can either lead to catastrophic results or yield satisfying rewards which could be passed on to the next generation. Our tax and wealth specialists assist business owners with a smooth transition of wealth and advise on the following:

• Wealth taxes, such as Estate Duty, Donations Tax, Capital Gains Tax;
• Exchange Control Regulations; i.e. loop structures, inheritances, foreign borrowings, debt restructure;
• Specials Purpose Vehicles such as Trusts;
• Cross border tax implications;
• Wills and multi-jurisdictional estate planning;
• Asset restructuring;
• Retirement planning options;

• Situs assets with specific reference to death duties in foreign jurisdictions and its impact on a South African tax resident;
• Offshore Trusts;
• Public Benefits Organisations and how to leave lasting legacies;
• Strategic planning to ensure continuity for family businesses.

Corporate tax services for private companies

Our corporate tax division specialises in gaining an in-depth understanding of your business and the core tax issues that impact it. We offer tax advice, ideas and services with the benefit of specialist knowledge across a broad range of industries and markets. We leverage our experience to ensure you can understand and manage your tax obligations in the following critical areas:

• Tax computations and tax returns;
• Tax implications of specific transactions;
• Corporate restructuring;
• Share incentive schemes;
• Dividends Tax;
• CGT;
• PBOs;
• Tax management consulting;
• Indirect tax & Provisional tax;
• PAYE;
• Income tax & Employees tax; and
• VAT

Personal tax

We can assist you with more than just your company tax obligations. As your dedicated trusted business counsel we can offer advice on your personal taxation affairs and assist with strategic planning in relation to::

• Investment structures;
• Retirement planning;
• Remuneration strategies;
• Provide you with an end-to-end service to manage your income tax compliance obligations.

Antswisa Tax Controversy and Dispute Resolution (TCDR) network assists taxpayers with an array of tax advice in a variety of industries. Our tax specialists help local and global clients with tax audits/disputes across all tax types, including corporate tax, personal income tax, employees’ tax, dividends tax and value-added tax. Our deep technical understanding, local knowledge, strong relationships and tax litigation experience combine with a global dispute resolution network to provide you with unrivalled service.

Antswisa TCDR team comprises experienced attorneys and accountants, which helps to ensure an all-round understanding of matters.

We assist and support taxpayers right from the initial query stage, through to managing the tax audit, providing opinions, and dispute resolution. We can also assist with voluntary disclosure programme (VDP) applications, requests for refunds from the South African Revenue Service (SARS), managing the payment of tax debt due by taxpayers, i.e. the settlement of disputes, representation at an alternative dispute resolution hearing, and requests for advanced tax rulings.

Issues you may be facing

• Liaising with SARS on a preventative basis, such as assisting clients with tax strategy/opinions, advanced tax rulings, binding rulings as well as voluntary disclosure applications (regularising tax affairs of clients)

• Managing tax audits (end-to-end)

• Assisting with tax disputes with SARS, i.e. objections and appeals

• Unlocking a refund owed by SARS

• Suspending the payment of a tax debt pending the resolution of a dispute with SARS

• Resolving a dispute with SARS – settlements and compromise

• Obtaining deferral arrangements

• Obtaining tax clearance certificates

Proactive measures – tax strategy

Liaising with SARS unaided does not always yield the desired result. Antswisa TCDR team can assist with various aspects of tax strategy, tax administration and tax dispute resolution. Due to our diverse team of accountants and attorneys, we are well placed to deliberate and determine the correct strategy and the appropriate way forward in not only submitting the correct tax position to SARS but also assisting taxpayer to defending a tax position. We can assist by drafting tax practitioner opinions (which can assist in mitigate certain penalties), advanced tax rulings (private or class), binding general rulings as well as requesting advanced VDP non-binding rulings.

When a SARS audit commences, our team of experts are also well placed to assist with not only the merits of the query but also the tax administrative provisions. It has proven very useful to clients to understand their rights and obligations when dealing with SARS.

Ultimately, if a disagreement with an assessment does arise, we can assist by drafting requests for reasons to enable a precise understanding of the basis of assessment as well as grounds of objection and later (should it be required) assist in drafting the grounds of appeal. Where matters are appropriate for resolution at ADR, the TCDR team will represent your matter and assist to ultimately achieve the best possible outcome.

Our team is also able to liaise with SARS’ Debt Management department to request suspensions of payment of the disputed tax debt pending the resolution of the dispute, should it be required. We also assist with applications for remittance of penalty and interest imposed as well as other assist with other SARS decisions such as refusal to grant extension for filing information (extension of time) as well as refusal to grant condonation for late filing of an objection or appeal.

Voluntary Disclosure Programme (VDP)

Antswisa VDP encourages taxpayers to come forward voluntarily to declare any default/s made by a taxpayer, thereby regularising their tax affairs. TCDR has helped numerous taxpayers to compile applications that meet the required criteria and thereby avoid imposition of understatement penalties and administrative penalties as well as criminal prosecution.

Antswisa TCDR team can assist with drafting the VDP application, performing the necessary tax calculations, lodging the application on SARS’ e-filing system, completing the revised tax returns and reviewing the VDP agreement provided by SARS.

Antswisa TDCR team of experts understands the nuances in respect of VDP applications and can advise whether the VDP process is the correct mechanism to regularise a client’s tax affairs.

Dealing with SARS audits

Being audited by SARS can, in some instances, be unnerving and protracted. During the audit process, SARS often requests the taxpayer to produce relevant material in connection with their audit. There are, however, various factors to consider before responding to a request for relevant material. The TCDR team can assist with determining the most appropriate mechanism to be used, depending on whether information requested is subject to legal privilege, the request is made with reasonable specificity, if document retention requirements apply and whether the request constitutes a fishing expedition by SARS. Further, it is important for taxpayers to understand their rights and obligations, for example, SARS is required to request specific information as well as issue progress reports in respect of an audit. Our team can assist with navigating these intricacies of SARS audits.

One of the implications of an audit, is that it can impact the tax compliance status (TCS) of an individual or entity. A taxpayer’s TCS is withdrawn in two instances: 1) when there is an outstanding return and/or 2) when there is an outstanding tax debt. This can affect a taxpayer’s ability to continue business activities. The TCDR team can assist you with applying for TCS alternatively, we can help with rectifying the reason for the non-issuance of a TCS.

Managing outstanding tax debt with SARS

In trying economic times, one way for taxpayers to manage the payment of their tax debts to SARS, is by entering into an instalment payment agreement, where a taxpayer can demonstrate a short-term cash flow problem and that they are unable to settle their tax debt in one payment. The TDCR team can assist by drafting a formal request for an instalment payment agreement. Other mechanisms to manage the payment of tax debts include entering into a settlement agreement with SARS (for disputed debt), alternatively a compromise agreement (for undisputed debts).

Our team can also assist with negotiations in this regard and the drafting of the relevant applications for submission to SARS. Where a taxpayer disputes an assessment, the TAA empowers SARS to enforce the ‘pay now argue later’ rule. However, the TAA also allows taxpayers to suspend the collection of taxes by SARS in limited instances. Our TCDR team can assist taxpayers to apply for such suspensions of payment.

We have practical experience with dealing with SARS’ Debt Management department and can assist clients in understanding their options when dealing with tax debt.

Dealing with SARS post-COVID-19

The COVID-19 pandemic has affected many taxpayers on many levels. The outbreak resulted in the large-scale disruption of work due to illness, self-isolation or quarantine. The impact on employment has been severe as businesses have had to grapple with the impact of reduced demand, disrupted business operations and a large portion of the workforce being unable to present themselves for duty. South Africa is experiencing unprecedented economic strain that has left many taxpayer’s in financial distress. Between April and May 2020, SARS announced various tax relief measures relating to, inter alia, employee tax incentives, employee tax deferrals and provisional tax deferrals to alleviate the cash flow burdens of taxpayers. Antswisa TCDR team has swiftly grasped the mechanics of the tax relief measures and can assist and support clients with their tax related queries and suggest possible options to gain tax relief.