At the request of a Big 4 audit firm based outside Cyprus, we proceeded with a direct and indirect tax due diligence on four Cyprus company’s’ activities involved with investing, IP licensing and financing activities.
The scope of our work was, among others, to comment on the status of tax/VAT filings and payment of taxes, to analyze the companies’ financial statements for the years 2019- 2021 to identify any significant tax risks, to comment on the safe harbor rules adopted on intragroup financing activities, to evaluate the VAT treatment applied and the calculation of VAT recoverability ratio, to identify any DAC6 issues, to analyze the tax deductibility of administration expenses and to comment on possible tax risks that might arise in the future.