- Undercharge for services rendered to another related party in order to minimise revenue for tax purposes. This would be most applicable in a situation where the firm providing the service is in a high tax rate country.
- Acquire goods at a mark-up, rather than at cost, from a related party. This would mainly apply where the party receiving goods wishes to overstate its purchases and thus reduce the profit.
- A related party entity may sell goods to another related party at below market rates in order to minimise sales, reduce revenue and thus avoid taxes such as value added tax, turnover tax or corporation tax
Wilfykil answered the question on February 25, 2019 at 11:48
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The following information was extracted from the financial statements for the year ended 31...(Solved)
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A report addressing in clear and concise details, the following matters raised by Mr. Jitendra Kumar.
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The double taxation relief (in Kenya shillings) due to Daniel Otwori for the year ended 31 December 2006.
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