Sibanda & Zantwijk - IP Valuation Services

To perform our valuations, we have developed proprietary IP valuation models that cross-check inputs, including the discount and growth rates, useful economic life, royalty rates and profitability against related, objective factors, thereby removing much of the subjectivity from the valuation.

In the past, certain valuators abused the veil of independence and objectivity. However, these unreasonable IP valuations have over the last few years been challenged readily and successfully by our Regulators. As such, we believe that defending our objectivity and independence is of prime importance for all concerned, resulting in fewer queries from Regulators and defendable valuations.

We provide the following range of IP valuation services:

- valuation of IP (whether for tax, exchange control or accounting purposes);

- selection of appropriate valuation models;

- providing opinions as to the reasonableness of IP valuations, and responding

to queries from SARS or SARB;

- identification and valuation of IP used in businesses;

- determination of reasonable royalty rates;

- determination of appropriate discount rates.

About the valuator:

Anthony van Zantwijk is a patent attorney specialising in the commercialization, taxation and valuation of intellectual property, and consults to many of South Africa’s top ten companies, multinationals, Treasury, SARS and SARB.

While employed at one of South Africa’s leading IP firms, Anthony inter alia valued IP totaling billions of Rand. During 2005, he took up employment at SARS’ Large Business Centre (Special Projects division), where he was responsible for reviewing and regulating IP tax structures and valuations. While at SARS, Anthony successfully challenged a number of high value IP valuations. Anthony continues to consult to SARS on IP tax structures and valuations and consults to many other South African Regulators and government funding agencies on this and related topics.

Anthony has also been engaged as an expert valuation witness by the South African Reserve Bank (Exchange Control division).

During 2006/2007, Anthony developed the IP valuation model currently used by SARS and made available by SARS to SARB.

Over the past two years, Anthony has presented various courses on IP valuation. In addition, Anthony lectures the IP module of the Wits’ (University of the Witwaterstand) H.Dip (Tax) course and the IP commercialization, royalty determination and IP valuation modules of the Wits’ LLM (IP law) course. Anthony continues to be engaged by Treasury to rewrite the IP sections in the South African Income Tax Act and to draft anti-avoidance tax legislation relating to IP. His articles on IP tax, exchange control and valuation have been published in various publications, including Finweek , Financial Mail and Without Prejudice and Anthony has contributed various chapters (including a chapter on IP valuation) to the Practical Tax Handbook (published by Fleet Street Publications).

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Last Updated ( Monday, 23 March 2009 )