Transactions between related companies or individuals are common, but they must be carried out under market conditions.
Tax authorities frequently review:
- management service fees,
- intercompany loans,
- rental agreements,
- asset transfers,
- supporting documentation.
If pricing differs significantly from market conditions, businesses may face tax adjustments and additional liabilities.
➡️ Important: Proper documentation is essential for demonstrating that related-party transactions comply with tax regulations.
CTA:
👉 We advise businesses on the accounting and tax treatment of related-party transactions.