Taxes and legal matters

Background

Andes Agroexport, a fast-growing exporter of agricultural products, faced increasing complexity in its tax and legal obligations due to its entry into new international markets. The company was looking to benefit from Peruvian export tax incentives while ensuring compliance with a dynamic regulatory environment.

The client’s internal legal team lacked the capacity to navigate these challenges alone, particularly in structuring contracts with new foreign distributors and suppliers. Additionally, recent changes in tax law affecting the agricultural sector raised concerns about potential liabilities.

Financecpa was asked to provide integrated tax and legal advisory services, offering practical solutions for compliance, tax optimization, and risk mitigation.

Our initial review revealed opportunities to restructure certain transactions for greater efficiency, as well as contract terms that exposed the company to unnecessary risks in international trade.

Solution

Our team developed a comprehensive tax planning strategy that maximized the use of export-related deductions and incentives while ensuring full compliance with Peruvian tax laws.

We redrafted the client’s international contracts, addressing ambiguities and aligning terms with both local and foreign legal requirements. This reduced the risk of disputes and protected the company’s interests in foreign jurisdictions.

Financecpa facilitated training sessions for the internal finance and legal teams, helping them to better manage ongoing tax compliance tasks and contractual obligations.

We also engaged in proactive discussions with tax authorities to clarify the interpretation of new agricultural tax provisions, securing written confirmations to provide additional assurance to the client.

Result

The company achieved significant savings in its tax liabilities, estimated at 15% annually, and strengthened its legal position in cross-border operations.

Potential tax exposures related to export activities were resolved without the need for litigation, preserving the company’s reputation and operational stability.

Andes Agroexport’s leadership reported greater confidence in their ability to manage tax and legal risks, with internal teams now better equipped to handle complex compliance matters.

The engagement laid the foundation for a long-term partnership between Financecpa and the client, with ongoing advisory support in their expansion efforts.

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