Economy category powered by

C. Theophilou: Cyprus experiencing a new reality in transfer pricing

Addressing the 7th Cyprus International Tax Conference in Nicosia, Christos A. Theophilou, International Tax & Transfer Pricing Partner, Taxand Cyprus, spoke at length about the transfer pricing challenges that define controlled transactions in terms of assets, services and expenses.

In his presentation on 20 February, he also referred to challenges in determining commercial or economic relationships and the precise delineation of the actual transaction.

Among other things, Theophilou explained that when it came to assets, an absence of rights could raise concerns about the independent nature of the transaction.

Tax authorities usually adjust pricing to reflect what would be considered appropriate under the arm's length principle, he explained.

Theophilou further commented that doing so could lead to an adjustment of taxable income and possible penalties for non-compliance.

This was followed by a series of examples regarding the challenges that arise and suggestions on how to deal with them.

(Source: InBusinessNews)

Read More

Tourist arrivals up 5. 4% in the first quarter of 2024, says Koumis
The RE:SOURCE 2.0 exhibition announces the list of participating artists
CySEC empowering youth with Financial Literacy initiatives
Limassol’s Anexartisias to become a one-way street ahead of pedestrianisation as it competes with the malls
The revised FDI screening bill and Cyprus' failure to comply
Prices in construction materials continue downward trend in March
Swiss Six and CSE announce the 'Go live' dual listing of Cyprus EMTN
Cyprus has one of largest increases in RES share in EU, Minister says
SUM urban mobility project workshop takes place in Larnaca
President announces joint visit to Lebanon with von der Leyen