Forte Tax & Law’s Post

Hey everyone and welcome back to another edition of Edwin's Tax Tuesday!! Today I have question for all of you Can business owners sell Company assets to themselves ? Yes I am talking about real assets like office equipment's, or trademarks. And yes its possible. ➡️ What do you need to keep in mind for this ? Compliance: Selling at fair market value is crucial to avoid issues with creditors and HMRC. Ethical Practice: As a director, it's your duty to act in the company's best interest. ➡️ How to implement the sale ? Independent Valuation: Get a professional appraisal to prove fair market value. Documentation & Approval: Keep detailed records, including board approvals (if applicable) and sale rationale. Tax Considerations: Seek an accountant's guidance on corporation tax, capital gains tax, and more. Yes it does sound exciting but as a business owner its one's duty to ensure legal and financial compliance, communicate with stakeholders(if applicable), and prioritize long-term strategic planning. #smallbusiness #uk #accountantsuk #acca #smb

A while ago, I had the pleasure of managing a project on accountants' role in Serbian business tax compliance under The USAID Cooperation for Growth Project, where prof. Branko has done remarkable research highlighting the significant impact of accountants on their clients' tax compliance, emphasizing the crucial role of personal relationships and practitioners' attributes. Some insights from the study: Most accountants believe they influence small business tax compliance, but impact wanes with client load. Personal relationships, practitioner traits, and services provided all play a role. Male-led firms with web presence and IFAC Code understanding report stronger influence. Non-compliance is observed in three-quarters of cases; client training reduces the likelihood of non-compliance. #TaxCompliance #AccountingResearch To read the full article: https://rdcu.be/dAUXq

Interested to see that the Supreme Court has, this morning, upheld the Court of Appeal's decision in Centrica Overseas Holdings Ltd v HMRC, and concluded that, once the board of the company made a decision in principle to sell a certain Dutch business which it owned, the professional advisor fees incurred in connection with that were capital in nature and thus not allowable as a deductible expense of management. When the Court of Appeal judgment was published, I could not help but feel that this conclusion was rather broad-brush and somewhat rendered redundant much of the earlier case law on what an expense of management was (despite holding that the principles from those cases were still relevant). On first glance, the Supreme Court does not appear to have addressed this. That said, the ultimate position appears to be clearer, albeit less taxpayer friendly, than before this litigation started - once a decision is made to buy or sell a capital asset, all advisor costs that follow, even if they lead you down a different avenue from the originally intended sale, are unlikely to be deductible. Read the decision here - https://lnkd.in/eweQ5-iE

#network #association #viral #accounting #moores_rowland_international #mri #global Every hindrance in your path is actually a hurdle to help you get a longer leap. https://lnkd.in/duXVgeC4

𝐓𝐡𝐞 𝐆𝐞𝐫𝐦𝐚𝐧 𝐌𝐢𝐧𝐢𝐬𝐭𝐫𝐲 𝐨𝐟 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐢𝐬𝐬𝐮𝐞𝐝 𝐧𝐞𝐰 𝐚𝐝𝐦𝐢𝐧𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐯𝐞 𝐠𝐮𝐢𝐝𝐚𝐧𝐜𝐞 𝐨𝐧 #𝐀𝐏𝐀 🎯 🕵♂️ Together with Markus Kircher we analyzed the new guidance and our five key takeaways are: 1️⃣ APA takes precedent over other unilateral binding instruments 2️⃣ Potential reasons for rejection are listed, among them the use of preferential tax regimes 3️⃣ Only business transactions that have not yet been finalized can be the subject of an APA, however a #rollback can be requested for previous years 4️⃣ Stricter duties to comply and deadlines 5️⃣ In line with the entry into force of section 89a AO, the new guidance is applicable to APA requests received as from 9 June 2021 The new guidance provides valuable insight into the application of section 89a Fiscal Code (AO) on APAs in practice. Given its entry into force date, the new guidance is 𝐢𝐦𝐦𝐞𝐝𝐢𝐚𝐭𝐞𝐥𝐲 𝐫𝐞𝐥𝐞𝐯𝐚𝐧𝐭 𝐟𝐨𝐫 𝐨𝐧𝐠𝐨𝐢𝐧𝐠 𝐧𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐀𝐏𝐀 𝐫𝐞𝐪𝐮𝐞𝐬𝐭𝐬. 🎬 Read more in our #taxathand article. #apa #transferpricing #tp #taxcontroversy #Germany #tax #internationaltax #Deloitte https://lnkd.in/dKyT4H3F

Have you faced technical issues while filing an appeal on the Income Tax website? Read an excerpt from the case law CIT v. Sri Vasavi Gold & Bullion (P.) Ltd. [2021]: Where there were several technical problems in e-filing of appeals and unawareness about procedure for e-filing appeals among assessees, benefit could be given to assessees for filing manual appeal as right of appeal is a statutory and valuable right and such right should not be denied on technical ground.

In a recent judgment, the Court of Appeal (CA) overturned a decision of the Court of First Instance (CFI) and the Board of Review (BOR). The CA ruled that the CFI and the BOR made an error of law for failing to recognize the role played by an agent outside Hong Kong in the sub-licensing arrangements (with the master license being obtained in Hong Kong) in determining that the royalty income was wholly sourced in Hong Kong. The CA however upheld the decision of the BOR and CFI that a contractual lump-sum payment received by the taxpayer was a taxable revenue item sourced in Hong Kong. While the CA remitted the case to the BOR to reconsider the source issue based on its ruling of the “principle of agency” and the implications of the TVBI case, the CA indicates that, based on the facts of the case, the source of the royalty income should be substantially offshore. Depending on whether the Revenue would appeal against the CA’s decision on the remitter, this CA’s decision could open the door for an apportionment of at least royalty income derived from sub-licensing arrangements. Such an apportionment is apparently not currently envisaged by the practice notes issued by the Inland Revenue Department (IRD). This alert discusses the issues involved in the case. Clients who wish to explore how the CA’s decision could impact their existing or potential future offshore claims can contact their tax executives. Find out more about the case at our tax alert: https://lnkd.in/gjQi8_Z4 #eyhk #eytax #principleofagency #royalty #sublicensing

#network #association #viral #accounting #moores_rowland_international #mri #global #InternationalBusiness #GlobalMarkets Every hindrance in your path is actually a hurdle to help you get a longer leap.

Legal Notice 9 of 2024 introduced important changes to Malta’s Transfer Pricing Rules. This Legal Notice introduces a sunset clause to the grandfathering provision. Find out more here: https://lnkd.in/dXpMVp3S --- Get in touch with our firm, a trusted financial partner, built for the speed and regulatory complexity of today. 💻 www.ncmb.eu 📞 +356 2133 0721 📧 info@ncmb.eu #MaltaBusiness #TaxServices #Tax #Accounting #Audit #Consulting #StrategicFinance #TaxCompliance #FinancialReporting #FinancialManagement #BusinessGrowth #FinancialAnalysis

TBeST Law collaborates with ENS Africa, Africa's largest law firm, to spread the word about the recent Transfer Pricing Directive. #TBeSTLAW #ensafrica #transferpricingdirective #Ethiopia