Transactions

The Ministry of Finance, the Transfer Pricing Forum and the Director of the National Revenue Administration Information Centre in many documents try to interpret the provisions on transactions with the so-called tax havens. Unfortunately, the explanations we receive are not always what the taxpayers want. In the individual ruling of 11 January 2022, the Director of the National Revenue Administration Information Centre presented a position unfavourable for taxpayers regarding the so-called tax haven transactions. How can this affect entities carrying out indirect tax haven transactions?

In 2021, among the taxpayer’s reporting and information obligations for the tax year ending on December 31, 2020, there were reporting on contracts concluded with non-residents within the meaning of the foreign exchange law (ORD-U form) and reporting related to transactions with related entities or contractors from tax havens (TPR form). The obligation to submit the ORD-U information expired on March 31, 2021, and the TPR information on December 31, 2021.

If the seller wants to land a good price and the buyer wants to avoid overpaying, the transaction of selling a business must be supported with a reliable valuation of the acquired company. But who should do it and how should it be done in order for the valuation report to be credible?

On the other hand, it is not always the case that the owner wants to sell the whole of their business. Moreover, and not infrequently, the owner is not even willing to sell the controlling stake. However, there are situations where selling a part of a business seems to be a good and reasonable solution.

Enterprises functioning on today's market mainly develop in an organic manner, increasing their revenues, profits as well as market position through their internal actions, such as acquiring new clients, introducing new products and services, searching for new markets and distribution channels. Organic growth requires the effective and efficient taking of decisions and strategy planning on the part of the management. That's why inorganic growth is an uniquely interesting alternative.