On-line Tax Strategies
Did you know that intragroup transactions are often incorrect and a common source of significant assessments by the tax authorities? Many of these frequent errors can easily be avoided. The following paragraphs provide information on areas to watch out for and potential solutions to limit the impact of commodity taxes on your cash resources in intragroup transactions.
Enterprises are required to collect and remit taxes on taxable supplies, even in the case of transactions between companies within the same group. The consideration paid or payable to an entity in exchange for a taxable supply triggers taxes, regardless of whether an invoice has been produced. Transactions may be evidenced by a contract, invoice or even a journal entry.