Group Members,

Required your opinion on the below case:

Company ABC sole establishment registred with FTA received fund against short term loan intrest free from Mr. Mohammad a family member regristered with fta under seperate TRN.

What is the best treatment of this type of transaction to avoid tax quaries.

SAJITH NAIR14/10/2020 17:52:49

The loan is interest free so there is no disclosure required for VAT purposes. Would recommend to have an intercompany loan agreement in place to evidence that the funding is indeed a loan.

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Muhibullah Khan14/10/2020 18:07:08

Mr. Sajith, Noted with thanks.

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