Transactions between related parties (e.g. company–owner, family businesses, related companies) are one of the key areas closely monitored by tax authorities.
Problems arise when transactions are not conducted at arm’s length.
Common examples include:
- loans without interest or with unusual terms,
- rental agreements not aligned with market prices,
- transfers of assets without clear justification,
- services provided without proper contracts.
During audits, FURS checks whether independent parties would agree to the same terms.
If not:
➡️ additional taxation may be imposed.
➡️ Practical advice: Even internal transactions must be properly documented and aligned with market conditions.
CTA:
👉 We can review your related-party transactions and identify potential risks.