At the request of a Big 4 audit firm based outside Cyprus, we proceeded with a direct and indirect tax due diligence on a Cyprus company’s’ activities involved with IP activities and also acting as a payment agent of a US company.
The scope of our work was, among others, to comment on the status of tax/VAT filings and payment of taxes, to comment on the VAT treatment adopted, to summarize and comment on disclosed material intra-group or other non-arm’s length trading arrangements, to analyze the company’s VAT exposure in other jurisdictions, to analyze the tax deductibility of administration expenses, to provide details on the IP Box Regime in Cyprus and to comment on tax residency and management and control issues.