Tax Litigation

Overview

The tax litigation team represents clients in many sectors in disputes against the Commissioner for the South African Revenue Service (SARS), principally relating to disputes arising from income tax, VAT and PAYE assessments. We advise clients lodging objections, noting and prosecuting appeals, and pursuing 'alternative dispute resolution' (under the Income Tax Act, 1962). Where feasible and appropriate, we engage in settlement negotiations with SARS.

We advise clients in relation to claims arising out of:

  • income tax disallowances born of trademark purchases and the assignment of copyright;
  • income tax disputes in respect of share block financing structures;
  • PAYE treatment, specifically of owner-drivers within the courier service industry;
  • the value-added tax treatment of "imported services" (as defined in the Value Added Tax Act, 1991);
  • secondary tax on companies, specifically arising within the context of the disposal of wholly owned subsidiary companies (held as long-term investments);
  • secondary tax on companies and the non-discrimination clause of double taxation agreements; and
  • the taxation consequences arising from a distribution of reserves in anticipation of a liquidation of a principal company.

Our clients benefit enormously from the close relationship between the Dispute Resolution and Corporate Tax Practices. We work together on litigious tax matters, ensuring that the teams' technical and strategic expertise is effortlessly combined to achieve the best possible results for our clients.