A healthcare group approached us with a complex ownership structure spanning multiple African countries. Among their challenges was resolving a dispute with a company in which they held a minority stake. Additionally, they owned minority interests in this company’s subsidiaries across different African countries, creating layers of interconnected financial and tax considerations.
Asset and Liability Valuation – We thoroughly evaluated assets and liabilities across subsidiaries to accurately reflect their market value and align with the client’s business intentions.
Capital gains tax application across jurisdictions – We analysed capital gains tax rules in the Ivory Coast, Ethiopia, Tanzania, and Mauritius, applying them carefully to the client’s situation to avoid unexpected tax liabilities.
Precise Contractual Structuring – We recommended drafting contractual agreements that clearly articulated the parties’ intent, preventing any accidental tax liabilities from arising due to ambiguous language.
Intercompany Loan Restructuring
The healthcare group also faced challenges with intercompany loans to subsidiaries in several African countries, many underperforming and unable to service their debt.
To address this, we:
The healthcare group is positioned to finalise the asset swap and dispute settlement without incurring unplanned tax costs, ensuring all agreements align with their commercial goals. Additionally, loan restructuring has improved the financial standing of the group’s subsidiaries, supporting a healthier overall balance sheet.
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