Taxation
To be of real value, taxation legal advice must take account of all relevant commercial consequences of that advice. We pride ourselves in combining technical knowledge with creativity and business insight to deliver the most appropriate solution tailored to our clients’ needs.
Taxation turns into a core issue in the corporate decision-making process with business becoming multinational. In this respect, when drawing up functional international strategies, both companies and individuals are compelled to take into account a bundle of direct and indirect tax issues. Our lawyers have substantial experience in Taxation, providing advice on the structuring of a wide range of corporate and financial transactions in order to achieve maximum tax benefits, leading to efficiency and optimization in all types of business.
Romanian tax laws are extensive and intricate and often detailed and supplemented by secondary legislation. Therefore, apart from continuously up-dating our knowledge on tax regulations, we better our performance by liaising with fiscal authorities and institutions and reaching practical solutions for business strategies.
In Romania, tax jurisdiction is organized as a separate jurisdiction from the general civil and commercial law. We are widely versed in this area of practice having successfully represented and defended the interests of many international as well as domestic clients against revenue collecting authority decisions both in administrative as well as in Court proceedings.
Our clients have ranged from international institutions and Romanian State entities to large multinational blue chip companies.
Our recent instructions include:
Taxation turns into a core issue in the corporate decision-making process with business becoming multinational. In this respect, when drawing up functional international strategies, both companies and individuals are compelled to take into account a bundle of direct and indirect tax issues. Our lawyers have substantial experience in Taxation, providing advice on the structuring of a wide range of corporate and financial transactions in order to achieve maximum tax benefits, leading to efficiency and optimization in all types of business.
Romanian tax laws are extensive and intricate and often detailed and supplemented by secondary legislation. Therefore, apart from continuously up-dating our knowledge on tax regulations, we better our performance by liaising with fiscal authorities and institutions and reaching practical solutions for business strategies.
In Romania, tax jurisdiction is organized as a separate jurisdiction from the general civil and commercial law. We are widely versed in this area of practice having successfully represented and defended the interests of many international as well as domestic clients against revenue collecting authority decisions both in administrative as well as in Court proceedings.
Our clients have ranged from international institutions and Romanian State entities to large multinational blue chip companies.
Our recent instructions include:
- Advising Termoelectrica S.A. (the largest state owned electricity producer) on an A to Z tax optimization plan for implementation of its “Debt Restructuring Scheme” in relation to EUR 1,200,000,000 debt towards various foreign and local creditors, including advise on tax effects in relation to state aid, profit and withholding tax, VAT and customs duties issues, from the perspective of the debtor as well as its creditors.
- Assisting GlaxoSmithKline, one of the world's leading pharmaceutical and healthcare companies to identify and optimize tax effects in relation to the spin-off of its pharmacies chain and the creation of its Romanian subsidiary.
- Advising General Motors on various tax matters in connection with the proposed privatisation of Automobile Craiova initiated by the Romanian Government, more particularly on the EUR 800,000,000 tax exposure of the proposed acquisition arising out custom duties.
- Advising Veolia Environnement, a major French utility company, in connection with the tax implications of several international stock options plans.
- Advising GE Commercial Aviation Services Limited, a major international aircraft player, in relation to tax optimization of its Romanian operations.
- Advising European Investment Bank, a major European based bank in connection with tax implications in Romania regarding domestic and international issuance of bonds, including proposing solutions for tax optimization.
- Retained by Elbit, a leading aircraft manufacturer, in relation to customs and tax issues arisen out of equipment being placed under customs warehouse regime.
- Advising Enel SpA, a major energy producer and distributor, on various taxation and social security issues related to domestic and foreign employees.
- Assisting Sider Sipe SpA in connection with structuring the recently closed EUR 120,000,000 sale of Ductil Steel S.A., the leading Romanian steel producer with a view to optimise its tax implications and duties.
- Assisating Banca Transilvania in connection with optimisation of the tax effects arising out of the EUR 100,000,000 of BT Securities. The Firm acted as lead legal counsel and assisted BT in all the transaction related legal matters.
- Advising KBC in connection with various taxation issues arising out or in connection with its EUR 75,000,000 acquisitions of Romstal Leasing IFN S.A. (a leading leasing company) and KBC Securities Romania S.A. (a top Romanian investment firm) as well as in connection with post-acquisition tax matters.
- Advising Gabriel Resources, a major Canadian mining group, in relation to the exploration and exploitation of the biggest gold and silver mining site in Europe: Rosia Montana. The development of the Rosia Montana mining project is one of the biggest foreign investments in Romania, the value of the direct investment until exploitation amounting to over USD 750,000,000 while the total investment is expected to amount to over USD 3,000,000,000. The firm is acting as lead legal adviser, dealing with various taxation matters, including advice on customs duties and on the incentives applicable under mining legislation and disadvantaged zones regime.
- Advising Sider Sipe SpA in connection with tax structuring of a cross border financing facility granted by Unicredit Banca d’Impresa SpA for the acquisition of the total share capital of Ductil Steel S.A., a top Romanian steel bars producer.
- Assisting Flamingo International, a leading IT retail supplier, in respect of various tax matters, including compliance with transparency and corporate governance requirements after its listing on the Bucharest Stock Exchange.
- Retained by important real estate developers in connection with tax optimization of the acquisitions or constructions of various real estate projects.
- Advising Caterpillar, a major equipment producer, in relation to tax and customs regime of cross border and domestic leasing in light of new fiscal rules enacted as of Romania becoming a European Union member.
- Assisting Monsanto, a major US seed manufacturer in connection with structuring and implementation of its major investment in Romania, with a view to benefit from favorable fiscal treatment.
- Advising a reputed London-based international law office on tax and social security issues related to expatriates working in Romania.
- Advising L’Oreal, major cosmetics producer, in relation to customs and cross border tax issues arisen out of inter-company license agreements.
- Retained by Mittal Steel Galati S.A. to provide legal assistance and representation services in a multi-million tax litigation against the Romanian Ministry of Finance on income tax and other taxes due to the state budget.
- Retained by Petromin S.A. (the largest shipping company of Romania) to provide legal assistance and representation services in a USD 25,000,000 litigation case against the Romanian Ministry of Finance related to VAT, income tax and other taxes due to the state budget.
- Retained by Arcelor Mittal (former Mittal Steel) to provide legal assistance and representation services to Mittal Steel Galati S.A. (former Sidex S.A.) in several Court files against the Regional Direction of Customs Constanta in the aggregate amount of USD 16,000,000.
- Retained by Société Générale to provide legal assistance and representation services in connection with complex tax litigation against the Romanian Ministry of Finance involving budgetary debts.
- Retained by Alpha Rocas (former Abela Rocas), the sole airline catering company in Romania, to provide legal assistance and representation services in various tax litigations between against the Romanian Ministry of Finance, involving VAT and income tax.
- Advising Electrolux, the world's largest producer of appliances and kitchen equipment, in relation to the administrative procedures for challenging the conclusions of a fiscal inspection report drafted by the fiscal authorities.
- Providing legal assistance to various other large corporations (including The National Oil Company Petrom S.A., Automobile Dacia, Italo-Romena Bank, Flamingo International, Interporto Romania, Romstal Leasing IFN, etc) in several multi-million tax litigations relating to custom duties, income tax, VAT, etc.
