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What is the impact on the audit of Related Party relationships and Transactions?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/01/29
Muhibbullah Siddi Ahmada
by Muhibbullah Siddi Ahmada , Manager , Readyfix Middle East L.L.C

Tax authorities are very careful and are focusing more closely on transfer pricing activities. There are more chances, to increase the sales and profit most the companies are transferring their stock to the sister concern and reversing back at the binning of the subsequent year. An importer must use reasonable care to determine whether transaction value is acceptable according to the circumstances. Both tax and Customs authorities must be satisfied that the transaction is recorded according to the accepted accounting principle.

 

 

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