08 Sep 2017
TP Docs Series
Related Party Issues
Ideally, every single business transaction should be reviewed by 3 points of views, i.e. tax, accounting and legal.
During preparing of TP Docs, we found there were different definitions about ‘related party’ / affiliated transactions between tax, legal and accounting (auditor) side.
Accounting Principle (PSAK 7 2015 revision) and ruling for Capital Market have a very broad definition of ‘Related Part’ comparing to Tax Laws (Income Tax and VAT Laws).
In reality, we found the fact that, even the tested party is owned by less than 25% by one of parent companies, accounting principle and legal for the capital market, categorize the transactions done by both parties as ’related party’ ones, even there is no control by parent company and its affiliated directly and indirectly.
Circular letter SE-50 year 2013 mentioned, if a tax officer could not find the related party, they can check in the disclosures of audit reports!!! The above fact can be a potential problem!!! Tax officers can consider it as related party even the ownership is less than 25% and no control issue.
Need a wiser action to clarify this problem in the TP Docs in order to avoid misunderstanding of the related party interpretation.
Agung Tjahjady SH, CPA, MM, BKP
Registered Tax Consultant, Advocate
0816 825 348
BVD Oriana User
Read Other Updates
TP Doc Series:
07 Feb 2019
Polemik yang Belum Usai dari Lahirnya PMK 229/2017
31 Dec 2018
Kebijakan Perluasan Tax Holiday dan Pemberlakuan Mini Tax Holiday
10 Dec 2018
Paket Kebijakan Ekonomi XVI terhadap Investasi di Indonesia
29 Nov 2018
AT Thank You
01 Nov 2018
Perbaharui Perijinan Perusahaan Anda Jika Tidak Ingin Dibekukan
30 Oct 2018
Annual Training "SUCCESS Through TEAMWORK“, 26-29 October 2018, @Hotel Mercure KL
08 Oct 2018
You Have To Know These Information Before Doing M & A
06 Sep 2018