No Match Found
Recent changes to the economy and our society have made tax laws increasingly complex, and it has become more difficult to interpret those laws without help of highly qualified professionals. At the same time, an increasing need for tax compliance has also made it more important for companies to collect and prepare relevant materials in a timely and appropriate manner and to analyse tax laws in light of future tax audits and tax disputes at the early stages of a transaction. PwC Legal Japan’s specialised tax lawyer team has a high level of expertise and a strong track record in this area.
To meet our clients’ management needs regarding tax compliance, our tax lawyers provide advice at each stage of the transaction , including pre- and post-transaction stages. We analyse the legal status of the transaction under the private laws (e.g. civil laws, corporate laws and foreign laws) that serve as the basis of the transaction, and conduct a detailed analysis of tax laws (including the interpretation of tax denial provisions) based on an analysis of court precedents, academic theories and practical treatments. Based on such analyses, we provide the necessary support to enable our clients to build appropriate transaction structures from tax and legal perspectives and take appropriate measures in preparation for tax audits and tax litigation that may occur after the transaction.
For a client who disagreed with the national tax authority’s view regarding their tax audit, we collaborated with PwC Tax Japan to prepare and submit objections and legal opinions, which were effective in convincing the tax authority to accepted the client’s position.
For clients engaged in significant transactions both inside and outside Japan, we investigated the relevant facts and prepared tax position papers and legal opinions with regard to various tax regimes (e.g. the corporate reorganisation tax regime, group tax regime, CFC rules, calculation of deemed dividend and capital gains and losses, donation tax regime, withholding and anti-tax avoidance rules) in order to provide reasonable claims from both factual and legal perspectives in preparation for the possibility of future tax audits.
In some cases, for clients who consulted in advance with the national tax authority, we also prepared and submitted explanatory materials and legal opinions to the national tax authority. As a result, the tax authority accepted the clients’ positions.
For a Japanese corporation with many foreign subsidiaries that was examining the Japanese tax consequences (e.g. deemed dividends, capital gains/losses and applications of CFC rules) in relation to a restructuring that included mergers and de-mergers of their foreign subsidiaries, we leveraged the PwC global network to investigate the legal nature (legal effect and treatment) of foreign mergers, de-mergers and entities under the relevant local laws, and prepared tax position papers and legal opinions regarding the applicability of Japanese tax law to such foreign transactions (including entity classification).