Implementing a joint venture with tax exemptions in East Africa
A global NGO formed a joint venture with a partner institution in East Africa to provide much needed health support to the country's people. The country's government had made high-level commitments to provide tax benefits to the joint venture, but implementation was stalled by lack of clarity regarding the relevant tax provisions and procedures needed to be enacted at the working levels in order to secure the somewhat unusual tax exemptions.
The ASG Approach
ASG set out to help our client more fully understand the political and economic dynamics driving the government decision-making process. After gathering the relevant information and history, the ASG team consulted with senior officials, seeking confirmation that the government would abide by its previous commitments. Leveraging our local affiliate we were then able to engage government authorities and determine the best strategy to successfully manage the issue. We advocated in favor of greater consistency on tariff exemptions and obtained written assurances regarding the favorable tax treatment the non-profit JV would receive.
ASG helped our client achieve its goals, with the tax authority granting the joint venture a formal authorization of tax exemption. The NGO was then able to move forward with its plans and concentrate its time and financial resources to its core health and humanitarian mission.