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 investing activities for the period of 2018-1st half 2021.
The scope of our work was, among others, to comment on the status of tax/VAT filings and payment of taxes, to analyze the application of the Reverse Charge principle and the VAT recoverability ratio used by the company, to analyze the companies’ financial statements to identify any significant tax risks, to summarize and comment on disclosed material intra-group or other non-arm’s length trading arrangements, to comment on the beneficial ownership concept and company’s eligibility to claim treaty benefits, to analyze the tax deductibility of professional/administration expenses, to evaluate and to comment on possible tax risks that might arise in the future.