The elimination of intra-group debts does not have any tax effects.

Question

Quizplus · Accepted Answer

Intra-group debts are considered as internal transactions and their elimination does not involve any actual movement of funds, hence it does not have any tax effects. However, it is important to ensure that the elimination of intra-group debts is done in accordance with the tax regulations and transfer pricing rules of the respective jurisdictions to avoid any tax implications.

The Elimination of Intra-Group Debts Does Not Have Any Tax