Tax Solutions for Engineering, Construction & Property
Common Tax Challenges in Your Sector
The unique financial flow of project-based work presents specific compliance risks that can easily lead to debt. Our expertise covers:
- Cyclical Income & Provisional Tax Revenue in construction and engineering is often cyclical, not linear. This makes accurately forecasting income for provisional tax payments extremely difficult, frequently leading to underestimation and substantial year-end liabilities.
- Contractor & Sub-contractor Tax (PAYE/UIF) The distinction between an independent contractor and an employee is a major point of contention with SARS. Misclassifying workers can lead to massive historical PAYE, UIF, and SDL liabilities being assessed.
- VAT on Project Milestones Managing VAT correctly across the lifecycle of a long-term project, with its various payment milestones and retentions, is a complex administrative task. Errors are common and can result in significant VAT debt.
- Capital Gains Tax (CGT) on Property For property developers and investors, the sale of a property triggers a significant CGT event. A failure to plan for this tax liability can leave a business with a huge debt and insufficient cash flow to pay it.
- Cash Flow-Aligned Payment Plans We negotiate SARS Payment Plans with repayment schedules that are realistic and aligned with your project-based cash flow, ensuring you can meet your obligations without halting operations.
- Debt Compromise for Distressed Companies In cases of severe financial distress, we can prepare and negotiate a SARS Debt Compromise to reduce the total liability, potentially saving the business from liquidation and allowing for a fresh start.
- Dispute Resolution for Contractor Tax If SARS has reclassified your sub-contractors as employees and levied a large PAYE bill, our legal team can manage the formal dispute resolution process to challenge the assessment.
- Strategic Advice on CGT Liability We provide proactive advice and solutions for businesses facing a large, unaffordable CGT liability after a major asset sale.
Other Services
Frequently Asked questions
Here are answers to common questions from the construction and property sector.
