Tax Advisory Services

AA&Co’s Tax Advisory division is one of the fastest-growing areas of our firm that provides clients with initiative-taking and cost-effective tax solutions that align with tomorrow’s possibilities.
We adopt an integrated approach to address our clients’ business challenges based on their country’s tax legislation, relevant foreign tax legislation, and Double Taxation Agreements (DTA).
AA&Co’s Tax Advisory Services will expand your landscape as your business grows by harnessing the latest technology, together with our outstanding technical support for effective tax solutions.
We work towards a common goal, setting AA&Co apart from the crowd through extreme support to work efficiently, professionally, and with technical excellence.

A. Corporate Tax

In recent years, corporate (business) tax has become a crucial component for business strategy, and it is a top priority for every stakeholder. The world of corporate taxes has transformed into today’s challenge for many organizations, and there is no going back.
Tax authorities across the globe have become more aggressive in ensuring that businesses have no excuse for ignorance about their tax function(s). At AA&Co, we believe that businesses should not rely on the likelihood that tax authorities may not come after them but on their readiness and the fact that they have made their position undefeatable.
Managing tax risk has become an aspect that no business can afford to neglect. Navigating through the growing complexity in the tax laws and often uncertainty over the income tax treatment of certain transactions or arrangements which are susceptible to challenge by tax authority requires expert knowledge and skills
We offer your business access to a global network of tax specialists with extensive corporate tax technical skills to provide meaningful advice and add value to your organization.

AA&Co’s services include:
• Corporate tax risk management.
• Tax planning.
• Tax accounting.
• Tax consulting.
• Mergers & acquisitions.
• Due Diligence reviews.

B. Value-Added Tax

Businesses now face complex Value-Added Tax (VAT) systems, case law, guidance, and legislation. Understanding VAT rules is key when entering new markets, expanding globally, and participating in international supply chains. Failure to comply may result in interest and penalties.

We can manage your entity’s overall exposure to indirect taxes. This includes guiding you through complex VAT legislation, advising you on the applicable VAT interpretation notes and VAT rulings, assisting you with preparing VAT returns and negotiating with tax authorities.

You will benefit by having access to our tax expertise and other commercial insights. This will assist you in making better financial and business decisions. Whether as an individual, small business, entrepreneur, or multinational corporation, you will receive the most effective VAT solutions to support your goals.

AA&Co’s services include:

(i) VAT Advisory

• VAT ruling applications.
• Technical VAT opinions.
• SARS Audits & queries.
• VAT registrations & deregistration.
• VAT on electronic services registration and compliance.
• VAT e-filling registration & profile set up.
• VAT returns & SARS verifications.
• VAT compliance services.
• Change of banking details.
• Assistance with unpaid refunds.
• All VAT related applications.
• Tailor-made VAT training.
• VAT Analytics.

(ii) VAT Debts Management advisory
• Deferred payment arrangement.
• Compromise of tax debts.
• Settlement of tax debts.
• Write-offs.
• Debt equalisation.

(iii) VAT issues management advisory

• Application of remission of penalties and interest.
• Objections & appeals.
• Tax board representation.
• Settlement of disputes.
• Tax clearance applications (foreign, tender, good standing).
• VAT Apportionment ratio calculations.

(iv) VAT Accounting Management

• VAT health checks.
• VAT accrual reviews.
• VAT risk assessments.
• VAT compliance reviews.
• VAT audits.
• Mergers, re-organizations and acquisitions.
• Due Diligence reviews.

C. Global Tax Services

Tax laws are complicated. Understanding and navigating tax laws in a new country is particularly challenging. AA&Co Global Mobility team can assist new assignees with a clear and painless process aimed at avoiding confusion and uncertainty in unfamiliar territory.
AA&Co’s services include:

• Registration and deregistration of expatriates with relevant tax authorities.
• Preparation of annual income tax returns for expatriates.
• Preparation of first, second and top-up provisional tax computations and returns.
• Conducting arrival/departure briefing of expatriates.
• Drafting and submission of objection letters and follow-up with revenue authorities.
• Appeals or alternative dispute resolution procedure, including meetings with tax authorities where required.
• Consulting with tax authorities on all inbound and outbound tax queries on behalf of expatriates.
• Facilitation of audits relating to expatriates.
• Assisting with gross-up and tax equalization calculation.
• Review and advise on tax equalization policy.
• Assisting with tax clearance certificates/letters of good standing from tax authorities.
• Provision of general tax advisory pertaining to expatriate services.

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D. Customs and Excise Tax services

The Customs and Excise environment is undergoing continuous changes to keep abreast with advances in technology.
Globally, importers, exporters and manufacturers of goods continue to employ numerous technology tools to achieve efficiency throughout their supply chains.
Tax authorities modernize their systems, people, and processes to secure revenue collection while facilitating legitimate trade. This results in continuous changes in the Customs and Excise legislation.

AA&Co Customs and Excise services can assist traders with ensuring that they achieve efficient supply chains while remaining compliant.

AA&Co’s services include:

• Assistance with registration, licensing, and accreditation.
• Providing imports and exports planning advice.
• Performing supply chain reviews.
• Conducting Customs and Excise risk and compliance assessments.
• Conducting Carbon tax reviews and assessments.
• Providing Customs and Excise duty relief advice.
• Assisting with resolving disputes with tax authorities and other relevant government agencies.
• Providing Customs and Excise training.

E. Tax Technology

The recent advancements in technology have disrupted the traditional tax function. This presents both opportunities and challenges.
Businesses can automate tax processes, develop, and adopt new digital tools, invest in data management tools, enhance reporting and visualization of datasets, extract knowledge from datasets and manage attendant tax risks.
Conducting these functions requires leveraging technology. AA&Co’s multi-skilled team is here to improve your operating model and increase efficiency in your business processes.

Critical areas we specialize in are:

Tax Data Management – Development, management and optimization of tax databases.

Data Integration and ETL – Integration of all tax-related data including data in ERP Systems.

Automation – Automation of business processes and development of digital tools.

Big Data Analytics – Business intelligence reporting, data visualization and machine learning.

F. International Tax & Transfer Pricing

When companies operate across borders or have a presence in multiple jurisdictions, complying with local tax laws and ensuring that they meet prescribed reporting requirements can prove to be a complicated and onerous task. Local market knowledge from specialist advisors is required and advised.
We also provide newly formed companies with tax-efficient structuring services as they embark on international expansion. AA&Co’s network allows us to have a clear view of both local and global trends.
AA&Co has deep technical expertise and insights into the cross-border activity of organizations. We can help you achieve your objectives.
AA&Co’s services include:
• Advising on the tax implications of financing agreements.
• Assessing effective management risks.
• Considering the tax implications of cross-border transactions.
• Evaluating controlled foreign company risks.
• Providing advice on new group structures.
• Reviewing the efficiency of existing group structures.
• Considering tax nexus risks.
• Drafting and reviewing of existing transfer pricing policy.
• Performing benchmarking studies.
• Advising on optimum pricing of intercompany transactions.
• Preparation of country-by-country reports.
• Submission of required documentation to revenue authorities.
• Supporting clients on transfer pricing audits.
• Preparing advanced pricing agreement requests.

G. Continental Africa Tax Services

The people of Africa are coming together to realize a common prosperous and integrated Africa.
However, the continent remains divided. Africa’s 55 countries each has its own tax rules and regulations. Companies operating on the continent find it challenging to navigate all the different tax laws.
AA&Co Africa Tax Desk provides forward-looking advice to support organizations operating on the continent.
AA&Co’s services include:
• Tax Restructuring Advisory.
• Supply Chain Tax Efficiency Reviews.
• Customs and Excise Tax Planning.
• Preferential Trade Agreements Advisory.
• Tax Project Management.
• Corporate and Human Resource Tax Compliance and Advisory.
• Transfer Pricing and International Tax Compliance and Advisory.
• Tax Technology.
• Training.

H. Specific Focus Areas

Financial Services, Mining, and Education sector to name a few are areas which require a solid regulatory and legal framework.

Entities operating within these specialized sectors requires a tailor-made audit and advisory service outside the standard approach and service offering. Traversing through the specialized and often complex tax rules requires expert knowledge and technical know-how.

AA&Co Tax Advisory has a team of dedicated tax specialists with extensive knowledge to bring practical and cost-effective tax solutions to our clients and assist entities operating within these sectors to manage their tax needs effectively.

I. Education sector

One of the common issues raised by many educational institutions is inadequate funding.
There have been historic challenges with tax compliance, educational services are not an exempt in Nigeria.

To increase income, these institutions have increased their taxable activities considerably. Furthermore, privately owned d institutions are accountable for their costs and are not provided with limited government support.

Value Added Tax (VAT)
• Reviewing the VAT methodology applied.
• VAT treatment of grants and subsidies.
• Supplies made, e.g. tuition, accommodation, plus other goods and services (taxable and exempt).
• VAT on imported services.
• VAT on electronic services.
• Research activities.
• Cost center analysis and classification.
• VAT analysis of debt.

Employees Tax (PAYE)
• Review of the remuneration structure and employee benefits to employees.
• Analysis of third-party service providers (incl. independent contractors).
• Analysis of post-retirement benefits.
• Tax Directives.
• Compliance.

ii. Mining and Royalty Tax

In recent years the mining sector has experienced a downward trend in the economy. However, mining remains one of the largest industries in the country and continues to play a vital role in the economy.

Navigating complex and uncertain mining tax laws requires expert knowledge and technical expertise. Additionally, changes in legislation and developments in case law compound the risks faced by the mining sector.

In addressing the tax risks faced by the sector, AA&Co has designed specific procedures to ensure adequate provision of the tax is recognized and current tax dues are fairly presented and disclosed in compliance with the applicable accounting standards, Income Tax Act requirements, the Petroleum Profits Tax requirements, relevant legal precedents, and current FIRS practices.

AA&Co’s services include:

• Reviewing of controls relating to the calculation of Petroleum profit taxes, royalties, gas flaring charges, Oil terminal dues etc.
• Reviewing the calculation of all the payments due to government as provided by management.
• Re-performing the analysis of taxes, royalties, gas flaring and other payables based on facts and relevant legislation.

iii. Financial services
According to the latest reports issued by the World Bank, the services sector (financial services mainly) is the third most significant contributor to the Nigerian economy.
Taxation of the sector has evolved through the years with the introduction of specific rules about structured financing with special anti-avoidance measures in place to specific hybrid instruments and the third-party backed shares, amongst other changes.
The tax implications of interest, debt raising costs and fair value gains/losses incurred on specific financial instruments require special attention due to the unique laws that are applicable. AA&Co’s experienced tax team can assist with transaction advice on the tax implications of your finance structure, and we can review the tax efficiency of current financing instruments in place and propose an efficient solution.
If you are looking to expand into the African region using West Africa as a gateway/head office, we can advise on financing or capital structure that is tax-efficient for the whole group and is in line with the in-country laws.
AA&Co’s services include:
• VAT apportionment matters that are associated with financial assistance.
• Advising on appropriate controls when foreign loans utilize finance assets currently under construction.
• Review of legal financing documents and report on the tax implications (compliance and financial reporting implications).
• Review of inter-company loan agreements and information on the tax implications for the group.
• Debt restructuring, preference shares vs ordinary shares vs debt, cross-border financing agreements.