Practice Areas SOLUTIONS IN NAIROBI, KENYA
Our firm specializes in providing expert tax services in advisory, due diligences and dispute resolution to clients drawn from diverse sectors. The education background and work experience of our team members ensures that we give well-rounded and top-rated tax services as detailed below.
a) Tax Advisory
The advice captures the tax implications of a commercial deal and goes hand in hand with corporate reorganization and/or restructuring where clients are concerned with efficient tax practices in compliance with tax laws.
Representative matters:
i. Advised Berkeley Energy, a renewable energy fund manager with primary focus on solar power projects, in connection with the tax structuring and tax implications of its investment model in Kenya.
ii. Represented a leading investments firm in reviewing a complex transfer pricing policy in respect of trade mark licensing and network fee agreements.
iii. Advised a multinational insurance brokerage company in relation to excise duty implications on sophisticated binder fee agreements. In addition to the advice, the Firm proceeded to offer legal support in implementation of the proposed structures.
iv. Provided advice to BayWa r.e. renewable energy GmbH in connection with the legal and tax implications of investing in a solar power project in Kenya.
v. Offered legal and tax advice to a South Africa based financial institution on setting up operations in Kenya. The advice included tax structuring advice in respect of investing in the Kenyan property market.
vi. Advising the shareholders of a bottling company in connection with corporate restructuring and setting up of a holding company in Mauritius.
vii. Advising a leading insurance company on an industry-wide issue revolving around the question of the VAT status of motor vehicle salvages sold by insurance companies in the course of indemnifying the insured upon the occurrence of a loss. This advice allowed the company to counter a KRA demand on an assessed liability on such transactions.
viii. Advised Berkeley Energy, a renewable energy fund manager with primary focus on solar power projects, in connection with the tax structuring and tax implications of its investment model in Kenya.
b) Tax Dispute Resolution
Tax audits by the Kenya Revenue Authority (KRA) are almost inevitable and so is approaching appropriate dispute resolution forums for disputed taxes. Depending on the nature of the dispute, the Firm represents clients in complex tax disputes with the KRA by firstly, advising clients on the options available to them in case of a dispute with the KRA; and secondly, representing them at the respective dispute resolution forums including exploring alternative dispute resolution (ADR) options.
Representative matters:
i. Representing an oil marketing company in a tax demand by the KRA involving corporate tax, excise duty and levies on petroleum products for a quantum of KES 10B in principal taxes.
ii. Acting for a Kenyan company which owns a submarine fibre-optic cable connected to the national fiber backbone network and other major backhaul providers at the Tax Appeals Tribunal and the High Court in relation to a tax demand by the KRA amounting to KES 4B in VAT and withholding taxes. The demand was reduced by 80% at the Tax Appeals Tribunal level.
iii. Advising an international French company which is a key player in the construction and renovation of grassed sports grounds on a tax demand issued by the KRA. The legal support offered included engaging with the KRA to amicably resolve the dispute.
iv. The Firm advised a local manufacturing company on the effect of a seizure notice issued to it by the KRA and the options available to the company.
c) Tax Due Diligences
The team plays a pivotal role in conducting due diligences on the various taxes that a target (particularly in an M&A deal) is subject to and finally preparing a Tax Deed and negotiating tax warranties and indemnities.
Representative matters:
i. Conducting a tax due diligence on several state owned companies. The due diligence covered general income tax, Pay As You Earn (PAYE), withholding tax and VAT.
ii. Acting for the purchasers of 100% of the equity of a leading investment management company which has its head office in Kenya and a branch in Uganda. The legal support offered included conducting a tax due diligence, preparing a tax deed and negotiating tax warranties and indemnities in respect of the transaction.
Tax heads covered include General Income Tax, PAYE, VAT, Transfer Pricing, Capital Gains Tax (CGT), Withholding Tax, Capital Allowances, Excise Duty and Customs.