Anjarwalla & Khanna has the countries’ leading legal tax practice. The firm’s tax experience includes advising clients in connection with tax liability in Kenya and the region, including advising on efficient tax practices for organisations, providing tax structuring advice, negotiating tax warranties and indemnities, and tax planning for companies amongst other advice.
Representative matters include:
- Defending SABMiller, an international alcoholic beverages manufacturer against a demand by the Kenya Revenue Authority for custom duties, including advising the client on Customs regulations and provisions under the East African Community Customs Management Act.
- Defending Equator Bottlers (a Coca Cola Bottling company) at the High Court of Kenya against a tax demand of USD 6.5 million for excise duty claims on returnable containers.
- Defending Finlays, an international agricultural and horticulture company, against a transfer pricing assessment in the amount of USD 18 million tax demand raised by the Kenya Revenue Authority, including working with Finlay’s tax advisers to file an objection to the assessment in accordance with the provisions of the Income Tax Act, as well as undertaking negotiations with Kenya Revenue Authority. This matter resulted in the triggering of the Mutual Agreement Procedure under the Kenya-United Kingdom double tax treaty pursuant to which the assessment was resolved through discussions between the KRA and Her Majesty’s Revenue and Customs.
- Acting for the shareholders of Cannon Assurance in their sale of 75% of the company to Metropolitan International Holdings including a share swap of 25% of the shares of Metropolitan, one of the largest financial services and healthcare companies in South Africa, including negotiating all transaction documentation and devising the tax structure for both the acquisition and the share swap to comply with governing insurance and tax law.
- Acting for Regus Group, a London Stock Exchange listed company operating turnkey office space and service in over 3,000 locations worldwide, on its acquisition from Worldwide Landmark’s businesses in Kenya, Nigeria, Ghana and South Africa, including providing corporate and tax advice on the acquisition structure and negotiating tax warranties and indemnities.
- Acting for Helios Investment Partners, a leading Africa-focused private equity fund, in its entry into a multi-million dollar joint venture with Acorn Group Africa, a property development and project management firm, for the identification, acquisition, construction and development of real estate properties in Kenya, involving the unwinding of a pre-existing joint venture between British American Asset Management by Acorn and simultaneous entry into the joint venture with Helios, including advising on the tax structure for the project, legal vehicles for various aspects of the project and suitable offshore jurisdictions to set up the holding company for the project.
- Advising China Road and Bridge Corporation, an international enterprise engaged in the construction of large infrastructure and investment business worldwide, in connection to the tax and legal structure of their proposed project involving the construction of a mixed used development, including providing structural advise in relation to the investment and the implementation of the project, providing tax advice, undertaking due diligence review on the property and other matters pertinent to the structure of the project.
- Acting for the sponsors of the 300MW Lake Turkana wind power project (the largest power generation project in Kenya, designed to provide at least 17% of the country’s power demand) including providing tax structuring advice on the equity structure for the project as well as various tax advice matters relating to various engineering, procurement and supply agreements (EPC) with Vestas (turbine supply), Siemens (electrical connection networks and substations), Civicon (210 km of road construction), and Seco (village construction) as well as interface with the Ministry of Finance, Ministry of Energy and the Kenya Revenue Authority on VAT issues relating to the project. This transaction won the Project Finance International (PFI) African Renewable Deal of the Year Award 2014.
- Advising Quantum Power East Africa, an investor focusing in the energy sector, in connection with the lease of 50 MW Wellhead geothermal power generation units at Olkaria Geothermal Fields, including advising on setting up in Kenya, advising on tax issues relating to establishing a branch or a wholly owned subsidiary of Quantum in Kenya and the tax considerations with respect to leasing arrangements.
- Advising MP Silva Ltd, a leading international media rights company, in connection with establishing a representative office in Kenya, including advising on various tax issues and legal considerations applicable to an entity operating in Kenya.
- Acting for Huntsworth PLC, a global public relations focused group listed on the London Stock Exchange on the setting up of operations in Kenya, including advising on the inbound tax structure, setting up the legal entity and advising on various aspects relating to taxation of employee emoluments, transfer pricing regulations and certain tax aspects relating to contractual arrangements with the Government of Kenya.
For more information on Anjarwalla & Khanna’s tax expertise, please contact Daniel Ngumy and Kenneth Njuguna in Nairobi.