The client is a UK based manufacturer and distributor of healthcare products. It established some 40 years ago as a joint venture between two UK and US companies. We have acted throughout the company’s life in a largely compliance role.
We were asked by the UK company to advise on, and assist with the renegotiation of, the joint venture agreement with the US company with particular emphasis on tax issues.
The work we undertook was to:
- Provide specialist advice on the joint venture arrangements
- Consider the tax position of the joint venture company and its investors
- Advise on transfer pricing issues including the appropriate level of fees and remuneration payable to the joint venture partners in the US and the UK
The outcome of our work was reflected in the continued success of the joint venture operation, which is delivering profits tax efficiently to its investors.
