Intercompany transaction

(redirected from Inter-Company Transactions)

Intercompany transaction

Transaction carried out between two units of the same corporation.

Intercompany Transaction

A transaction that occurs between two companies. For example, if a supplier sells to a retailer, this is said to be an intercompany transaction. It should not be confused with an intracompany transaction.
References in periodicals archive ?
Companies where heirs hold significant stakes can grow in revenue and market value through inter-company transactions, and the wealth created in this way is not subject to tax," said Kim Hai-ree, a lawyer with Seoul-based legal consulting firm Global & Case
Had MCPS been owned by Paysafe for all of financial year 2016 and the merchant portfolios acquired at the start of that year, pro-forma consolidated 2016 revenues for MCPS excluding inter-company transactions would have been USD 329m, an increase of 6% compared to 2015.
In future, countries may have more rights to ignore contrived inter-company transactions created to shift profits offshore.
Under an APA, a multinational taxpayer enters into an agreement with one or more tax authorities regarding the appropriate set of criteria to determine the pricing of various inter-company transactions over a defined period of time.
The Public Accounts Committee (PAC) said yesterday the government should set down rules limiting inter-company transactions that reduce companies' tax bills, push for more transparency in company reporting on tax and work with other countries to limit profit-shifting across borders.
Even if your inter-company transactions are less than $1 million per year, you still need to establish that you're using arm's length prices.
To arrive at the ratings, CRISIL has combined the business and financial risk profiles of Rukminirama Steel Rollings and Karthik Inductions Ltd, together referred to as the Rukminirama group, as the two firms are in the same business line, under a common management and have inter-company transactions.
The variety of inter-company transactions, increased global business restructuring and location of companies in various tax jurisdictions have brought several challenges to the tax administration on transfer pricing rules," he added.
Excluding inter-company transactions, the acquisitions are expected to add between SEK50m and SEK70m to Hexagon's sales in 2010.
The fraud was centred on false sales documents and a web of inter-company transactions designed to deceive factoring companies into providing finance to the Ravelle Group.
KPMG Fakhro recommends companies should take a systematic approach to setting and documenting inter-company transactions, identifying those that may be likely to attract a tax authority's interest, preparing the necessary documentation, including a well-argued transfer pricing policy document, and deciding what their objectives might be.
The drop was a direct result of 97% decline in the housing development income and an increase of 57% in the adjustments of inter-company transactions.

Full browser ?